Assignment for Week 8

Short Questions (2 marks each)

Q.1) Explain the concept and goals of project audits?

 Project audits are more than the status reports, which check on project
performance. Status reports view the project in all aspects to assess the project
performance.

 Project audits use performance measures and forecast data, which is more
inclusive.

Goals:

 To review the project why it was selected.

 Reassess the projects role in the organizational priorities.

 Check on the organizational culture to ensure it facilitates the type of project

being implemented.

 Assess whether the project team performing well and is staffed.

 Check on external factors that might change where the project is heading or its
importance- Eg: technology, government laws and competing products.

 Review all factors relevant to the project and managing future projects.

Q.2) Explain the concept of Team Evaluation?

Before an auditing of the project team can be effective and useful, a minimum core
conditions need to be in practice before project begins. Some conditions are listed in the form of
questions:

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  Do standards for performance exist? Are the goals clear for the team and
individuals? Challenging? Attainable? Lead to positive consequences?

 Are team and individual responsibilities and performance standards known by the
team members?

 Are the team rewards adequate? Do they send a clear signal?

 Is a clear path for successful project managers in place?

 Does the team members have authority to handle short-term difficulties?

 Is there a relatively high level of trust from organizational culture?

 Team Evaluation should go beyond time, cost, and specifications. Are there
criteria beyond thread criteria?

These conditions will support any evaluation approach for teams and their members.

Team evaluation is for checking the effectiveness of the team members in performing
specific tasks as a team.

The results of team evaluation surveys are helpful in changing behaviour, stressing the
importance of supporting the team approach, and continuous improvement.

Q.3) List down various reasons due to which project/s are terminated?

 The parent organisations does not exist or may changes its strategy, and the
project does not support the new strategy.

 Lack of senior management support.

 Project Manager with no skills.

 Poor planning and lack of risk management.

 No use was made of earlier final reports.

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  Time/cost estimates are not prepared correctly.

 Starting late and jumping for next tasks without adequate planning.

 Technical errors.

 Force majeure (Earthquake, flooding etc)

 Adequate resources are not available.

 Requirements or specifications are not clear or it will change as that the

underlying contract cannot be changed accordingly.

 Lack of customer support.

Long Questions (4 marks each)

Q.1) Explain the structure (Components) of audit report for a project ?

The major goal of the audit report is to improve the way the future projects are managed.

It will capture the needed changes and lessons learned from a current or finished project.

It will act as an instrument for managers of future projects.

A general outline for audit report is as follows:

1. Classification

The classification of the project by its characteristics allows prospective readers

and project managers to be selective in the use of the report content.

It includes the following:

 Project Type

 Size

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  Number of staffs

 Technology level

 Strategic or support

 Other classifications related to organizations are also included

2. Analysis

It includes the review statements of the project.

For Example:

 Project mission and objectives

 Procedures and Systems used

 Organizations resources used

3. Recommendations

It represents the corrective actions to be taken. It is important to recommend

positive successes that should be continued and used in future projects. Postproject audits may be
the place to give credit for the project team for their outstanding contribution.

4. Lessons Learned

It serves as a reminders of mistakes easily avoided and actions easily taken to ensure
success. It is used to avoid pitfalls to make the project implementation smoother.

5. Appendix

It include backup data or details of analysis that allows others to follow if they wish. It
should not be a dumping ground or used for filler; only pertinent information should be attached.

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Q.2) Explain Audit Life Cycle?

1. Initiation and Planning

This is the first phase of the audit life cycle. During this phase, all requests for information
received by the internal audit team within a specified number of days to the start of the
audit.

It may include several activities are as follows:

 Conducting a review of the clients environment, mission , operations, policies and

practices.

 Performing risk assessment.

 Completing research of regulations, industry standards, practices, and issues.

 Reviewing current policies, controls, operations, and practices.

 Developing a formal agreement of the audit objective, scope and audit protocol.

 Holding an entrance meeting to review the engagement memo, to request items from
the client, schedule client resources and to answer client questions.

2. Fieldwork

 This is the second phase. It refers gathering data — gathering evidence.

 The purpose is to accumulate and verify evidence.

 The evidence must be sufficient, competent, relevant, and useful to reach

conclusions.

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  This conclusions should be related to the audit objectives and helpful to support
audit findings and recommendations.

 The auditor conduct activities like interviews, test, observe procedures and practices
etc at the client workplace for a fixed timeline to receive information after a request
put by audit team.

3. Analysis and review

 This is the third phase to ensure that all fieldwork activities and evidence items are
documented accurately in the audit report to support audit findings and
recommendations.

 Any inconsistencies or open issues are addressed at this time. The auditor will
present the first draft of the findings and recommendations to the client during the
existing meeting to resolve any outstanding issues.

4. Final reporting

 This is the fourth phase of the project audit cycle.

 The audit team will provide three versions of the audit report.

 The first draft will be presented to the client after completing fieldwork and
analysis.

 If any changes required, the auditor will present second draft.

 There will be response time like 15 days that changes from organization to
organization, to respond the first and second draft.

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  The third and final report presented to the client with the auditors findings and
recommendations even if there is no response for first or second draft as well as
client responses

5. Follow-up

 This is the fifth phase of the audit life cycle.

 After a reasonable time, as agreed by both parties or mandated by the

administration, the auditor will contact the audit client.

 This is done to request a status report on corrective actions and schedule a follow-up
engagement to confirm corrective action.

 The auditor will evaluate the effectiveness of the corrective action taken, and if
necessary, advise the client on alternatives that may be utilized to achieve desired
improvements. Follow-up phase repeated until several changes initiated. This phase
may require additional documentation for the audit client.