Scribd
Upload
155 views11 pages

Project Audit

Project audits involve a thorough examination of all aspects of a project including its management, methodologies, records, budgets, and progress. The main purposes are to help achieve project goals, identify problems early, improve performance, and reduce costs. A project audit typically includes assessing the current and expected project status, critical tasks, potential risks, and lessons learned. The audit findings are documented in a report that facilitates comparing actual results to predictions.

Uploaded by

sasikanthjadhav86
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
155 views11 pages

Project Audit

Project audits involve a thorough examination of all aspects of a project including its management, methodologies, records, budgets, and progress. The main purposes are to help achieve project goals, identify problems early, improve performance, and reduce costs. A project audit typically includes assessing the current and expected project status, critical tasks, potential risks, and lessons learned. The audit findings are documented in a report that facilitates comparing actual results to predictions.

Uploaded by

sasikanthjadhav86
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 11

Project Auditing

Project Audit
A formal review of any aspect of a
project.
Project “audits” are not limited to
financial matters
Project audits may not be performed by
accountants
The main purpose of an audit is to help
achieve the goals of the project
Project Audit
Thorough examination of its
 Management

 Methodologies and Procedure

 Records

 Properties

 Inventories

 Budgets

 Expenditures

 Progress
Project Audit Recommendations
Identify problems earlier
Clarify performance
Improve performance
Locate technological advances
Evaluate quality
Reduce costs
Improve risk identification
The Project Audit
1. Current status of the project
2. Expected status of the project
3. Status of critical tasks
4. An assessment of potential risks
5. What lessons can be applied to other
projects
6. What are the limitations of the audit
Timing and Value of the Project
Project State Value

Initiation Very useful, significant value of audit takes place early- prior
to 25 % completion of initial planning stage
Feasibility Study Very useful, particularly the technical audit

Preliminary Very useful, particularly for setting measurement standards to


Plan/ Schedule ensure conformance with standards
budget
Master Schedule Less useful, plan frozen, flexibility of team limited

Implementation More or less useful depending on importance of project


methodology to successful implementation
Post project More or less useful depending on applicability of findings to
future projects
Steps in Project Audit
1. Familiarize the audit team with the requirements of the
project, including its basis for selection and any special
charges by upper management

2. Audit the project on site

3. Write up the audit report in the required format

4. Distribute the report


Construction 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
Audit Report
1. Introduction
2. Current status
3. Future project status
4. Critical management issues
5. Risk analysis
6. Limitations and assumptions
Responsibilities of the Project Auditor

Be honest and ethical


Be independent
Tell the whole truth
Seek help for technical issues
Some Essentials of a Project Audit

Need to select an audit team with


experience and expertise
Auditors need access to top management
Auditors need access to project personnel
and others
Auditors need access to all records

You might also like