Training and development are vital HR activities that ensure employees’ skills, knowledge, and leadership capabilities evolve in line with organizational goals. Internal auditors apply a matrix of assertions and internal controls to validate that training programs are properly authorized, recorded, and effective. This structured approach helps identify gaps in compliance, resource allocation, and program impact.
Elements of Training and Development
-
Employee Orientation – Introduction to organizational policies, culture, and job requirements.
-
Skill Development Programs – Training to improve technical or soft skills.
-
Leadership Development – Preparing employees for managerial roles.
-
Career Pathing and Succession Planning – Aligning training with future talent needs.
Assertions and Internal Controls Matrix – Training and Development Example
| Assertion | Potential Misstatement | Example of Internal Control | Relevant Questions / Audit Tests |
|---|---|---|---|
| Occurrence | Training recorded for employees who did not attend | Attendance logs and electronic sign-in systems | Are all training sessions supported by attendance records? |
| Completeness | Missing records of completed training | Centralized training management system (TMS) with mandatory updates | Are all completed trainings documented and stored in the system? |
| Authorization | Unapproved or non-budgeted training programs | Management approval required before program initiation | Were training programs approved by HR or senior management? |
| Accuracy | Incorrect recording of training hours or course content | Regular reconciliation of training records with schedules | Do recorded training hours match actual delivered content? |
| Cutoff | Training recorded outside the proper reporting period | Defined reporting periods with system lockout after period end | Are training completions recorded within the correct timeframe? |
| Classification | Training costs or activities misclassified in accounting | Standard coding for training expenses and program types | Are training expenses classified correctly by type and department? |
Practical Example:
In a manufacturing company audit, the internal audit team found that leadership development sessions were recorded in the training system without proper attendance verification, violating the occurrence assertion. The lack of electronic sign-in enabled fictitious records. The auditors recommended implementing biometric attendance systems and regular cross-checks between HR and training departments.
Using the assertion-control matrix for training and development, internal auditors can systematically evaluate the validity, completeness, and accuracy of workforce learning initiatives, helping organizations optimize talent growth and compliance.