In this section, we also list the 8 HR practices that form the foundation of the entire HR function. We start with the presentation of the company and then we demonstrate the role and responsibilities of the IA and HR departments, which are detailed in the internal operating procedure, and then we quote current HR policies and procedures.
The Internal Audit Department
The role of the Internal Audit in a Company
The impact of correct or incorrect compliance is visible in those statements and affects the Company and its relationship with the stakeholders in one way or another. Finally, what matters for the proper operation of a Company is that all managers and employees comply with the policies and procedures defined by the Company.
The advantages and disadvantages of having an Insource Internal Audit function
This must be achieved regardless of the existence and operation of internal audit, because the company needs to develop an internal audit culture at all. 9 number of specialized skills due to the high cost required to invest in these skills.
The HRM Department
The role of HRM in the Company
Compensation is usually “under the umbrella” of HRM and most of the time is related to the job description of the workplace. This evaluation is usually performed by one or more superiors in the employee's hierarchy annually.
Auditing Human Resources Management
Even though all policies are up-to-date and legal, if paper and practice are out of sync, the risks increase exponentially. When the IA has completed the review and changes are required based on the findings, the primary action should be to correct abuses of law.
Company Presentation
The company's vision was to become a truly global ambitious luxury player stretching from jewellery, watches and accessories to the edge of full-fashion, but the past year seems to be going through the most difficult period the company has ever gone through , and it tries to overcome it. 1982 The Folli Follie brand is founded by Dimitris and Ketty Koutsolioutsos. 1994 Folli Follie launches the first watch line. 2010 Merger of the companies Folli Follie, HDFS and Elmec Sport and creation of the FF S.A.
2011 Fosun International enter the VF S.A. its shareholder base through a capital increase and reach sequential participation of 13.8%.
Methodology
Recruitment Procedure”, “Long Term / Pre-Loan Policy”, “Car Leasing Policy”, “Mobile Phone Policy”, a sample of the internal audit plan (2017) and information from the company website. In addition, during the writing of this thesis, interviews were held with the director and the 2 internal auditors – members of the IA department, who they answered to a questionnaire included in Appendix 1. The questions were intended to help us understand how an audit to the Human Resource department within a company is performed, and more specifically, the purpose of conducting an HR audit, the methodology, the key points, the red flags and the whole process in general.
The Internal Audit Department of FF S.A
Presentation
19 The Internal Audit Service has full access to all books and records of the Company, to the buildings and archives of the employees and more generally to all activities of the companies of the N.V., which are necessary for the performance of its audit activities. Board members should collaborate and provide information to internal auditors and generally facilitate their work. objectives, as well as the operation of the Company in accordance with its policies, procedures and predefined objectives and assistance to the administration for the effective performance of its duties.
Also the safeguarding of the Company's assets as well as the accuracy and reliability of its books. At this stage it must be made clear that the responsibility of each Department is not transferred to the Internal Auditors. The Internal Audit Department controls the decision-making and execution procedures and the results, but the content and the weight of any decision is the responsibility of the Department being audited.
Role and Responsibilities
The revision of the Company's commitments in the prospectuses regarding the use of funds raised on the exchange. Checking the legality of all benefits to the members of the Management according to the decisions of the competent bodies of the Company. Monitoring compliance with the obligations imposed by the decision of the Board of Directors of the Capital Market Commission.
Reports to the Management of the Company all cases of conflicts of interest between the members of the Board of Directors that he/she identifies in the performance of his/her duties. Monitors the implementation of company policies and procedures and ensures the upgrade of the procedures when weaknesses are identified. Conducts audits in departments and divisions of the company and in stores in consultation with the management.
Report quarterly to the Audit Committee on the current work of the Internal Audit Department.
The Human Resources Management of Folli Follie S.A
Presentation
The company's Personnel Management is responsible for the management of human resources and employment in all the parent company's departments and is also responsible for the parent company's salary as well as for the care of the workplace.
Role and Responsibilities
Review of all employees' leave in collaboration with department managers, as well as control employees' absence. Issue certificates related to the official status of the resigning employees, at the request of the person concerned or on his initiative, if required by law or regulation. Is responsible for informing the Management about the labor market about training and seminars, so that employees can continue to be trained and thus contribute to the improvement of the level of the Company's employees.
Reports monthly to management on the progress of the department's work, any problems encountered and the ways Human Resource Management recommends to solve them, as well as the need for periodic rotation of employees in cooperation with each director of the company. Collaborates with the Finance Department on the preparation of the annual Human Resource Management budget and its adjustments at regular intervals throughout the year. Maintains direct communication and cooperation with the internal audit department to comply with the company's principles and procedures, both from the HR department and from all employees at the level of the company's processes and communication with each individual employee separately.
HRM Policies and Procedures
Procedures
- Development and Training Process
- Recruitment procedure
- External Candidate Search Procedure
- Exit procedure
- Performance Evaluation process/Appraisal Process
It also checks whether the employment is included in the Department's annual budget. In the following, the human resources department takes over the completion of all necessary documents for public services and forwards them to the head of the human resources department and requests his signature. After the procedure has been completed, the personnel department files the employee's folder in the record of terminated employees.
The Department Manager, with the approval of the Director, announces by completing. Then, the Human Resources Department, in cooperation with the responsible head of the Department, determine the date of dismissal of the employee. After receiving the necessary approval from the Director, the Human Resources Department informs the responsible manager of the Department about the result of his/her application.
On the same day, the manager of the department, in cooperation with all departments involved, must complete the receipt of the company material, which is finally communicated to the Human Resources Department.
Policies
- Long -Term/ In advance loan policy
- Car leasing policy
- Mobile phone provision policy
The employee is informed by his/her Manager of the approval or not of his/her application, which justifies the case of disapproval. The Human Resources department is responsible for informing the employee about the Corporate Vehicle Concession and Driving Policy while the Procurement Department is responsible for receiving the leased vehicle. The Human Resources Department electronically informs the Procurement Department of the car category the employee is to acquire.
If no car is available in the existing fleet, the employee may select a car from the approved list of his/her job category (the list is sent by HR) and the Procurement department will order the new car. When a corporate cell phone is required, the employee fills out a form and, with approval from their manager, sends it to Human Resources to specify the device type and eligible employee. The Purchasing department completes all procedures, informs the employee and delivers or sends the mobile device and SIM card.
The employee signs the receipt form (Corporate Use Declaration Statement and form), which the Purchasing Department must send to be archived in the individual folder at the Personnel Department.
Auditing the Human Resources Management of Folli Follie S.A
Presentation of the process
- Scope
- Objective
- The Internal Audit approach
- Process description
- The HRM’s participation
- Timetable
- The “Red flags” when auditing HRM
Subsequently, the relevant follow-up is carried out at regular intervals, and in the event of non-implementation, relevant recommendations and written reports are made to the management and the head of the audit department. According to the annual audit plan, the IA department sends an engagement letter to the Human Resources Manager informing him/her about the IA team, the scope of the audit, the objectives, the approach, the HR participation and the audit schedule. Request and gain a better understanding of the HR policies and procedures followed in the company.
This draft report is sent to the HR manager for his/her information and clarification of the findings and when the report returns to the IA, they finalize the report and the director of the department delivers it to the CEO and the audit committee of the company . At the end of the fieldwork phase, a meeting is held with the Human Resources Manager to discuss preliminary findings, open information, and next steps towards the audit. After receiving his/her reply, the report is finalized by the Director of Internal Audit and submitted to the Audit Committee.
38 Internal auditors base their audit on the Audit Plan, but they are always looking for some "red flags" which are indicators that may lead them to improper performance of managerial duties or even activities employee fraud.
