A review of the human capital management plan (HCMP) typically occurs during which type of audit?

The review of the human capital management plan (HCMP) typically occurs during an HR audit. This type of audit focuses specifically on the policies, procedures, practices, and strategies related to human resources within an organization. The HR audit assesses the effectiveness and efficiency of HR functions, ensuring that they align with organizational objectives and comply with relevant laws and regulations.

Conducting an HR audit allows organizations to identify strengths and weaknesses in their human capital strategies. By reviewing the HCMP in this context, HR professionals can evaluate how well the organization is managing its workforce, including aspects like recruitment, performance management, employee development, and retention strategies. This form of auditing is critical for aligning human resources with broader business goals and optimizing the use of human capital.

In contrast, a risk assessment audit often focuses on identifying potential risks to the organization and evaluating the effectiveness of controls in place to mitigate those risks. GAAP audits are concerned with financial statement accuracy and compliance with generally accepted accounting principles. Internal revenue audits typically address tax compliance and financial reporting related to an organization’s tax obligations. Each of these audits has a distinct focus that does not center on the specifics of human capital management, which is why the HR audit is the most relevant choice for reviewing the HCMP.