Recruitment

Control Objectives for Recruitment

(a) To ensure that appropriately experienced and stable staff are recruited to
meet the organisation's business and operational objectives;
(b) To ensure that a structured, targeted, and cost-effective approach to
recruitment is adopted;
(c) To ensure that all recruitment and appointments are suitably authorised;
(d) To ensure that recruitment activities comply with the current legislation
and regulations;
(e) To ensure that new employees are engaged in compliance with the
prevailing remuneration and conditions policies;
(f) To ensure that all positions are suitably evaluated and that the key
recruitment criteria are identified;
(g) To ensure that candidates are evaluated against the job specification and
adequately screened to confirm their previous employment and educational
record;
(h) To ensure that personnel and employment records are correctly
established and accurately maintained in accordance with any applicable
legislation;
(i) To ensure that valid and correct employment contracts are agreed, signed
and retained.

Risk and Control Issues for Recruitment

1 Key Issues

1.1 Have documented recruitment policies and procedures been

established, and how can management be assured that they are up-to-date
and complied with?
1.2 Have standard remuneration scales and employment conditions been
implemented, and would management be made aware of staff engagements
which fall outwith these standards?
1.3 How can management be certain that all staff recruitment and
appointments are warranted and authorised?
1.4 What processes ensure that the requirements of a particular position
are clearly established as the basis for evaluating subsequent applicants?
1.5 How can management be sure that the most appropriate and cost
effective method of recruitment is utilised, and that excessive recruitment
costs are avoided?
1.6 What steps are taken to confirm the previous employment record
and educational qualifications of candidates, and what prevents the
engagement of staff with either an invalid or unsuitable record?
1.7 How can management be assured that all the prevailing employment
and engagement legislation and regulations are being correctly observed?
1.8 Are all staff engagements supported by a valid, accurate, agreed, and
signed contract of employment, and what prevents staff being engaged
without a contract being in force?
1.9 What measures ensure that new employees are correctly set up on
the payroll and that their salary rate is valid for the position?
1.10 How can management be certain that accurate, complete and up-to-
date personnel records are maintained which conform to any relevant laws
and regulations?
1.11 Are personnel and employment records adequately protected from
unauthorised access and use?

2 Detailed Issues

2.1 How are recruitment requirements identified and are they all subject to
suitable authorisation (and how is this evidenced)?
2.2 What prevents an unauthorised position being filled?
2.3 Are all new positions and replacements subject to assessment and
management authority?
2.4 Are all positions supported by an up-to-date job description and
specification?
2.5 How can management be certain that recruitment is directed by the
requirements of the job description or specification?
2.6 Is a planned approach adopted for recruitment which defines the optimum
method(s) to be used?
2.7 Is the recruitment method agreed with the relevant manager and an
overall budget established (i.e. for advertising, use of agencies, etc.)?
2.8 Is recruitment advertising appropriately directed (i.e. to relevant journals
and locations)?
2.9 How can management be certain that recruitment costs (including
advertising and external agency fees) are valid, authorised and within budget?
2.10 Are recruitment efforts suitably targeted and are internal candidates
sought and considered?
2.11 Are the established job criteria (i.e. salary range, preferred age range, etc.)
realistic and current in relation to the local employment conditions?
2.12 Where recruitment activities are either protracted or unsuccessful, are
management consulted and a revised approach agreed?
2.13 Is recruitment performance monitored by management and is there is
evidence of the corrective action taken?
2.14 Are all those concerned with recruitment suitably aware of the
implications of all the prevailing recruitment and employment legislation and
regulations (and how is this evidenced)?
2.15 What processes would detect either any actual or potential infringements
of the prevailing employment legislation?
2.16 When applicable, how would management be assured that any prevailing
equal opportunity or anti-discrimination laws were being correctly complied with?
2.17 Are applicant/staff complaints about the recruitment process promptly and
effectively dealt with in accordance with the current law?
2.18 Are references obtained and checked for validity, etc?
2.19 Are claimed educational and vocational qualifications verified, and how
are anomalies followed up?
2.20 Are interviews professionally conducted by suitably experienced personnel
and are interview objectives established as the basis for the conduct of the
interview?
2.21 Are standard rates established for interview expenses and are claims
checked for validity and suitably authorised for payment?
2.22 How are interview expense payments outwith the standard rates
prevented?
2.23 Where specific skills are required, are candidates adequately tested and
evaluated prior to engagement?
2.24 Are candidates required to undergo a medical examination as a condition
of employment (i.e. for acceptance into the company health insurance scheme) ,
and how can management be sure that unsuitable candidates are identified?
2.25 Are applications efficiently dealt with and are rejected candidates
informed?
2.26 Are accurate records maintained of all applicants (including current
employees)?
2.27 How can management be assured that all offers of employment are valid,
accurate and lawful?
2.28 Are all offers of employment accounted for and are acceptances correctly
acknowledged and processed?
2.29 Are the contents of employment contracts verified for accuracy before
release, and how would errors be prevented?
2.30 Are all employment contracts accounted for, and how can management be
certain that all contracts are signed and in force?
2.31 Are new staff made aware of all relevant conditions of employment,
operational practices, safety regulations, etc., and how is this evidenced?
2.32 Are suitable arrangements made for new employees (i.e. issue of security
cards, induction or safety training, etc.)?
2.33 Would inaccurate or incomplete personnel/employment records be
detected and what action is taken to correct such records?
2.34 Is management information generated from the personnel and
employment records accurate, reliable, timely and appropriate?
2.35 How is the accuracy of data input from other systems (i.e. manpower
planning) confirmed?
2.36 How is the accuracy of data output to other systems (i.e. payroll)
confirmed?