Human Resource Accounting & Auditing is crucial for assessing the progress and direction of a company. It focuses on the value of human assets in an organization, monitoring their development and impact on revenues. Human resource valuation must be followed by auditing to ensure managers are performing in the organization's best interests. Without proper valuation and audit, management decisions aimed at short-term profits may harm human assets and overall efficiency. Human resource audit helps evaluate managers' performance and improve human resource efficiency in a changing business environment.