Organizations, in the present environment, can survive and succeed only if they wisely manage the assets i.e. capital, technology, and people, within their control. Traditionally, organizations focus heavily on their capital and technology, neglecting both the fraction of resources that should be devoted to people and the impact people processes have on the success of the organizations. To maintain a competitive advantage, the organizations need to shift their focus from asset intensive to knowledge intensive and thus focus more on their human assets than on technology assets. HRD Audit works as a system for measuring the HR framework in the organization and helps in attaining sustainable competitive advantage. The audit helps in channelizing the energies, abilities and specific knowledge of the human resources towards attaining long term organizational goals. In today's knowledge based economy, higher education institutions are playing as centers for human resource development. (King, R.1995). Also, universities currently face immeasurable complexities and turbulence in their external environments and their internal set ups are consequently under the pressure to adapt in an effective way. (Brock, D. M.,1997). On the one hand, universities are increasingly being required to teach ever increasing number of students in increasing numbers of specializations and disciplines and on the other they are being asked to pay more attention to quality of teaching and educational programs. (Uma Shanker, Dutta, 2007) To be able to cater to the challenge of expansion and diversification, while ensuring that the quality standards are maintained, human resource development systems can prove extremely critical towards this purpose for the higher educational sector. The present research study is proposed in this backdrop, with a view to introspect the role of Human Resource Development systems in the larger context of higher education sector in India The University of Jammu, Jammu and the University of Kashmir, Srinagar from India, have been taken for this study. The study is based on the assumption that Human Resource Development Audit is significantly a function of Human Resource Development Climate in organizational context. (Pareek, U., Rao, T. V.,92, Rohmetra,98)