This audit report outlines findings and business risks/impacts from a review of the team member resources function at a company. The objectives of this review were to evaluate efficiency and effectiveness of the processes in scope, compliance with established policies and procedures and/or applicable laws, and adequacy of controls to mitigate the related risks.

The components selected for review included: time keeping, team member files, employment of minors, and required postings. In addition, internal audit verified that management had sufficient knowledge of applicable wage and labor laws. This audit identified the following issue: written policies and procedures do not exist for all processes.

Without written policies and procedures, processes may not be followed consistently and in accordance with management’s intent. If key individuals leave the company, a lack of policies and procedures may increase the time needed to train personnel and lead to process inefficiencies. Knowledge transfer may not occur accurately, which may result in key controls in the process not being performed. The company may not be able to meet its expected growth rates due to the inadequate training and an insufficient control structure. In addition, inconsistent practices within team member resources can lead to regulatory violations and expose the company to litigation.