PROJECT AUDITING

By Sajna Fathima

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Project Audit

A formal review of any aspect of a project.

An audit is a systematic, independent, documented assessment using standards and set criteria.

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Purpose & Goals

Efficiency in meeting both the budget and the schedule

Customer impact/satisfaction Business/direct success Future potential

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The Project Audit- Approach

The main purpose of an audit is to help achieve the goals of the project

All facets of the project are studiedThe strengths and weaknesses are

identifiedRecommendations are prepared to help

current and future projects

Project auditing

Project auditing can be defined as the process of detailed inspection of the management of a project, its methodology, its techniques, its procedures, its documents, its properties, its budgets, its expenses and its level of completion.

Project auditing can help you assess the current state of a project, and tells you if your project management processes are being followed.

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benefits

A project audit provides an opportunity to uncover the issues, concerns and challenges encountered in the execution of a project.

If done at the close of a project, a project audit can be used to develop success criteria for future projects by providing a forensic review.

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Depth of the Audit

Time and money limit the depth of an audit

Audits are distracting to those working on the project

A poor audit result will lower morale on the project

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Types of Audits

General Audit Detailed Audit Technical Audit

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Timing of the Audit

All significant projects should be auditedLarger projects may be audited several times

An audit may also be conducted after the project is over (post-project audits)

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Format and Use of the Audit Report

1. It should facilitate the comparison of actual versus predicted results

2. Significant deviations should be highlighted

3. Reasons for significant deviations should be given

4. Plans for resolving negative deviations should be discussed

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Audit Information

1. Introduction

2. Current status

3. Future project status

4. Critical management issues

5. Risk management

6. Caveats, limitations, and assumptions

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Responsibilities of the Project Auditor

Be honest and ethicalBe independentTell the whole truthSeek help for technical issues

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The Project Audit Life Cycle

Project audit initiation Project baseline definition Establishing an audit database Preliminary analysis of the project Audit report preparation Project audit termination

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Some Essentials of an Audit/Evaluation

Need to select an audit team with experience and expertise

Auditors need access to top managementAuditors need access to project

personnel and othersAuditors need access to all records

Three phases

A project audit consists of three phases:Phase 1: Success Criteria and

Questionnaire DevelopmentPhase 2: In-depth ResearchPhase 3: Report Development

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Project Audit Recommendations

Identify problems earlierClarify scope, cost, and time relationships Improve performanceLocate technological advancesEvaluate qualityReduce costs Improve risk identification

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The Project Audit-outcomes

Current status of the project Expected status of the project Status of critical tasks An assessment of potential risks What lessons can be applied to other

projects? What are the limitations of the audit?

Conclusion

The purpose of a project audit is to identify “Lessons Learned” that can help improve the performance of a project or to improve the performance of future projects by undertaking a forensic review to uncover problems to be avoided.

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