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24 views29 pages

Unit – V ppt

Uploaded by

eterenalgroot
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We take content rights seriously. If you suspect this is your content, claim it here.
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Unit – V

Project Auditing
By
S. Kumar
Unit – 5
• Project Auditing
• Project Evaluation
• Project Termination
Project Audit – Meaning
A project audit is a formal
review of a project, intended
to assess the extent to which
project management
standards are being upheld.
Objectives of a project audit
1. Ensure the quality of products and services
• A quality assurance tool
• It reviews the project life cycle
• It evaluates the thoroughness of the design
concepts
• It assesses and confirms the implementation at
each site
• The identification of the errors and the
resolution of the problems
Objectives of a project audit
2. Ensure the quality of project management

It assesses compliance with the


organisation’s policies, processes and
procedures.

It evaluates the methodology used to help identify


gaps in order to introduce the required
improvements.
Objectives of a project audit
3. Identify the business risk
• It identifies of factors which could
affect budget, time, environment and
quality.

• It assesses the feasibility of the


project in terms of affordability and
performance
Objectives of a project audit

4. Improve project performance


• Improvement of the project team’s performance.
• To improve the budget and resource allocation.
• Identifying priorities, corrective measures and
preventive actions
• Provides solutions and helps prevent similar
problems from recurring in the future.
Objectives of a project audit

5. Learn
• Deliver learning opportunities
• Providing reviews and feedback
• The final objective of a project audit is to
ensure that the project meets the
standards of project management through
investigation and evaluation.
Importance of Project Audit
• To understand where we are
• whether or not things are going as
intended
• continually assessing
• discovers reasons of project failures
• establishes a project's total value
• risk management
• offers feedback
Types of Project Audit

1. Normal Audit
• a component of the Monitoring and Controlling approach team.
• It is often known as Inspection
2. Quality Audit
• critical examination of the project
• They investigate if the team adheres to the company's procedures.
3. Risk Audit
• by both the Monitoring and Controlling teams.
• They aid in the overall progression of the treatment.
4. Procurement Audit
• The acquisition Audit Team is part of the Completion procedure team. An organized
general comment flushes out worries, establishes mastered instructions,
guarantees difficulties are fixed for future tasks, and recognizes favorable outcomes
as well as problems that warrant transfer to different other procurements as part
of procurements closing.
Project Management Audit Process

• 1. Plan the Audit


• 2. Conduct the Audit
• 3. Summarize the Audit
• 4. Present the Results
• 5. Decide an Action Plan
• 6. Plan a Follow-up
• 7. Repeat
Project Audit Life Cycle

The life cycle of an audit contains six


phases:
 audit initiation
 project baseline definition
 establishing a database
 preliminary project analysis
 preparing final report and
 terminating the project
1. Project audit initiation
• Defines the purpose and the scope of the
audit,
• Determines the proper audit methodology
to use.
2. Project baseline definition
• Determine which areas of the project will
be audited.
• Establish the standards of measurements
• Verification of expectations
3. Establishing an audit database
• Begin the execution
• Create database
• Focus on necessary information
4. Preliminary analysis of the Project

• Judgment
• Analyse the data
• Present the analysis
• Comparison
5. Audit report preparation
• Prepare the audit report
• The report in the format the organization
• Findings and recommendations
6. Project audit termination
• a review of the audit process will be done.

• The review looks for improvements in the


audit and how it was conducted for future
use.
Project Audit Process Checklist

• 1. Develop the Achievement Criteria


• 2. Analysis
• 3. Report
1. Develop the Achievement Criteria

• Conduct interviews.
• Develop criteria based on Company's needs.
• Create a checklist
• Distribute the checklist
• Assign a mediator or auditor to conduct interviews with the team.
• Gather the team's responses.
• Concentrate on their perspectives on the project's accomplishments, failures, lost
opportunities, Create an audit questionnaire with open-ended questions.
• Offer the survey to the team.
• Arrange a team gathering to discuss their opinions and ideas
• At the meeting, discuss and attempt to address important project issues, concerns,
• Identify and agree on optimum cooperation and collaboration techniques.
• Conclude the meeting by confirming that the first stage of the project audit checklist
has been completed.
2. Analysis

• Individual research interviews should be conducted.


• Interview key players about the same issue.
• Create a report that summarizes the conversations
• Do a root-cause analysis to uncover causes of problems.
• Examine each issue to assess its severity
• Prioritize the issues based on their effect and severity.
• Make a list of the problems that have been prioritized.
• Examine each problem category.
• Examine the project quality plan
• discuss additional possible solutions .
• Identify and document the lessons learnt,
• Check that the second stage of the audit checklist completed.
3. Report

• Gather all of the records created during interviews and meetings


• Gather the information gathered from the surveys.
• Incorporate the information from the project documentation.
• Determine the quality plan-defined solutions
• Determine which opportunities have been effectively realised.
Determine which additional solutions have been applied.
• Create a list of all the concerns that have been handled effectively.
• Create a project audit report.
• Provide recommendations in the report.
• Describe the audit process's specifics.
• Send the report to upper management.
• Ascertain that the third stage of the project audit checklist has been
completed.
Project Evaluation
• Project evaluation is a
systematic and objective
assessment of an
ongoing or completed
project.
Importance of Project Evaluation

Determining the efficiency


Measuring the profitability
Determining the potential
Project Evaluation Steps

• Planning
• Implementation
• Completion
• Reporting and disseminating
Benefits of Project Evaluation

• Better Project Management


• Improves Team performance
• Better Project Planning
• Helps with Stakeholder Management
Project Termination
• Lack of funding
• Project length
• Natural occurrence
• Unrealistic expectations
• Failure in the testing process
Categories of Termination

• Extinction
• Addition
• Integration
• Starvation
How to terminate?
• Provide notice
• Pause all work
• Focus on the resources
• Collect report and submit documents

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