Project Management

Chapter 21 : Project Auditing

Project Evaluation and Its Purpose

Project Audit

Depth of an Audit
Timing of the Audit
Post Project Evaluation

Construction and use of Audit Report

Responsibilities of The Auditor

The Project Audit Life -Cycle

The Essentials of an Audit

Selecting a Proper Audit Team
Access to Records and Files
Access to Project Personnel

Performance Measurement

Chapter Summary

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.

A project audit is a key step in the process of closing a project. This audit evaluates the total project processes and outcomes. In this chapter we discussed the purpose of evaluation and the various measurement parameters used in a project audit. We also discussed the life-cycle of a project audit.

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.
An audit report discusses the present status of the project, the expected future status, status of the critical tasks, risk analysis, information related to other projects and limitations of the report.

To be effective, accurate, credible and acceptable to top management, project team and the client, an audit has to be carried out by a competent audit team that has access to all the records and files of the project.

Next Chapter>>