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    What does an HR audit cover?

    By Alberto Alatorre ·

    An HR audit answers three questions. Which laws apply to you? Are you doing what they require? Can you prove it?

    That is the whole job. Everything an audit checks is a way of answering one of those three questions. If you are thinking about paying for one, this is what you should expect it to cover.

    What does a general HR audit check?

    A standard compliance audit walks through the areas where a small business most often has gaps.

    Hiring and Form I-9. Are your job posts, applications, and interview notes consistent? Are I-9s complete, on time, and stored correctly? One incomplete I-9 can cost $288 to $2,861 per form.

    Wages and classification. Are exempt and non-exempt roles classified correctly under the FLSA? Are overtime, meal breaks, and final pay handled the way your state requires? Misclassification is one of the mistakes an audit checks first, because it affects pay across the team.

    Benefits and leave. Are eligibility, enrollment, and leave tracking handled consistently? Do managers know what to do when someone asks for leave or an accommodation?

    Handbook and policies. Does the handbook say what you actually do? Does it contradict itself, or promise something you do not deliver? Is there an Ai section at all?

    Records and retention. Are personnel files, payroll records, and I-9s kept for the right length of time, and can you find them when you need them? Retention rules differ by record type, and state rules can extend the federal minimum.

    Safety, performance, and offboarding. Are safety rules written and followed? Are performance notes documented with dates? Do exits follow the same steps every time, with final pay handled correctly?

    What does FixYourHR's Ai audit cover?

    A general audit checks the whole HR function. Our Ai Risk and Compliance Audit checks one thing in depth: how Ai is used across your HR function, and what legal, ethical, and compliance exposure that creates before it becomes a lawsuit.

    It is for companies using Ai in hiring, screening, or performance, leaders who are unsure what their teams already use, and teams preparing for state Ai laws.

    Here is what you get, in the words of the service page:

    1. Inventory of Ai use across people processes.
    2. Risk findings ranked by severity.
    3. Written Ai policy and review process.
    4. Fix-it plan with owners and dates.

    The audit reviews how Ai is used across people processes, especially hiring, screening, and performance. It covers interviews and tool review, and it produces that inventory of Ai use. The risks it flags include bias exposure in screening tools and changing state Ai rules.

    How does the audit run?

    It starts with a discovery call to scope the audit and the systems in play. You get a proposal with an audit plan within a few business days. The audit kicks off within two weeks, with interviews and tool review. The report holds the findings, the policy, and a prioritized fix-it plan.

    Is this legal advice? No. The audit flags HR and compliance risk and works alongside your counsel. What if problems are found? You get a fix-it plan, and we can help carry it out.

    A Health Check starts from $7,500. Read the Ai Risk and Compliance Audits page for the full scope of the Ai audit and how it runs.

    What to do next

    If you suspect gaps but cannot name them, an audit names them for you. Read the Ai Risk and Compliance Audits page for the full scope and process, then book a discovery call. Thirty minutes. No pitch deck. Reply within one business day.

    Frequently asked questions

    What is an HR audit?
    A review of how your HR function works against the laws that apply to you. It answers three questions: which laws apply, are you doing what they require, and can you prove it.
    What does an HR audit usually check?
    Hiring and Form I-9, wages and exempt versus non-exempt classification, benefits and leave, handbook and policies, records and retention, safety, and performance and offboarding.
    What does FixYourHR's Ai audit cover?
    How Ai is used across your people processes, especially hiring, screening, and performance. You get an inventory of Ai use, risk findings ranked by severity, a written Ai policy and review process, and a fix-it plan with owners and dates.
    Is an audit legal advice?
    No. An audit flags HR and compliance risk and works alongside your counsel. It does not replace legal advice.
    What does a Health Check cost?
    From $7,500.