I need help expanding my notes on project audits - writing an essay comparing Es
ID: 3849987 • Letter: I
Question
I need help expanding my notes on project audits - writing an essay comparing Establishing an Audit Database, Preliminary Analysis of the Project, Audit Report Preparation, Project Audit Termination.
Discuss the details of each step
Project Audit Initiation:
The Project Initiation Phase is the 1st phase in the Project Management Life Cycle, as it involves starting up a new project. You can start a new project by defining its objectives, scope, purpose and deliverables to be produced. You'll also hire your project team, setup the Project Office and review the project, to gain approval to begin the next phase.
->Overall, there are six key steps that you need to take to properly initiate a new project. These Project Initiation steps and their corresponding templates are shown in the following diagram. Click each link below, to learn how Method123 templates help you to initiate projects,
->The Project Initiation Phase is the most crucial phase in the Project Life Cycle, as it's the phase in which you define your scope and hire your team.
Project Baseline:
A baseline is a set of stored values. Usually, these will be:
Original Scheduled Start and Finish DatesPlanned Effort (may be expressed in hours)Planned or Budgeted CostPlanned or Budgeted Revenue
->The main benefits of having a project baseline are:
Ability to assess performanceEarned Value calculationImproved future estimating accuracy
Establishing an Audit Database:
gathering/organizing pertinent data
->focus on what necessary
Preliminary Analysis of the Project:
->This is judgement phase
->comparision of actual to standard
Audit Report Preparation:
in this phase
->present findings to PM first
->Then prepare final report
Project Audit Termination:
in this phase
->review of audit process
->disbanding of team
Explanation / Answer
A project include various stages, processes, sub-processes,execution of various activities, involvement of team members from different department, analysis of project result, identifying the discrepancies, supervision of performance of individuals involved in different activities and achieveing desired result.
The steps involved in conducting the project audit are described as follows:-
a) Establishing an Audit Database
b) Preliminary analysis of the Project
c) Audit Report Preparation
d) Project Audit Termination
At the time of conducting project audit, we need to first understand the details of the project, project start date and estimated date for completion of the project. We need to analyse the amount of fund required, various sources for procurement of fund, various activities and budgeted cost involved for completion of the project, estimated time required for completion of the project, budgeted revenue for the project, various resources required and need to be allocated for completion of the project.
Project baseline is the project initiation phase and is prepared by the organisation prior to initiation of the project. Project baseline helps the organisation for analysing the necessary requirement at the initial stage of the project. It provides a base for continous monitoring and supervision of various project related activities, to identify deviations on timely basis and to take corrective necessary actions.
At the time of conducting project audit one should understand and collect all the relevant details, budget etc related to the project. After collecting the data detailed analysis should be done to identify the major items to put focus on. After collecting the necessary data, variances of the budgeted projection with the actual data should be identified. The auditor should discuss and check the reason for deviation.
The auditor should also discuss about the updated budget, if any prepared by the organisation on the basis of progression in project. The auditor should analyse the process of reporting the variations to the senior management and the involvement of senior managementr in the executrion of the project. Day to day monitoring should be done to ensure that estimated result is derived from the project.
The auditor should analyse the deviation, identify the reason for deviation and discuss the same with management personnel. On the basis of analysis and review, the auditor should prepare the draft audit report, discuss the report with the responsible authorised personnel.
After discussion and the basis of reponses received the auditor should prepare the final report for submission to the management. Once final report is prepared analysis should be conducted to have complete review of audit process to identify gaps (if any) and after the review disbursement of team member should be done.
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