If an HR audit reveals noncompliance or gaps but management fails to act, it increases liability because it demonstrates knowledge of the issue without corrective action - a legal risk under employment laws like Title VII, FLSA, etc.
Official Extract:
"An HR audit identifies risks. Failure to remedy findings may lead to claims of negligent employment practices, compounding liability." (Source: HRCI PHR Content Outline 2024-2025, Business Management Section, Risk and Compliance Management)