Internal Audit of Compensations and Benefits: Tasks and Risks in Production Systems

Nemanja Berber, Milan Pasula, Milan Radosevic, Dejan Ikonov, Vesna Kocic Vugdelija


Compensations and benefits have always been very sensitive and complex activity of HRM process in production systems. Model of compensations presents financial and non-financial rewards linked to efforts and performances of employees and executives. Since this activity is understood as very important from two main reasons, that compensations are motivation factor for employees and operational costs for the company, there is a demand of making rewarding process highly effective and efficient for reaching employees and shareholders satisfaction. Besides this, many frauds, risks and problems related to amounts of executive compensations in the past initiate the need of appropriate management and control of this process. One possible way of reaching the effectiveness and efficiency of compensation process in terms of appropriate governance, risk management and control is the internal audit. Main objective of this paper was to explore reasons for, the processes involved in and risks of internal audit in HRM area of compensation and benefits.



human resource management; internal audit; compensations; benefits; risk

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Print ISSN: 1392-2785
Online ISSN: 2029-5839