Mark Reilly presented on project audits at the Assurance SIG Conference 2018. He discussed that a project audit is a formal, independent and documented assessment of some or all aspects of a project using standards and set criteria. It can add value as an insight tool for what is happening on a project. Project audits should be planned, risk-based and have clear reporting and follow-up. They can provide early warning of problems, insight into performance, and confirmation of likelihood of success to stakeholders. Common pitfalls include ineffective governance, delayed involvement, and insufficient business knowledge, while keys to success are establishing effective governance, ensuring early involvement, and developing strong partnerships.

1. Assurance SIG Conference 2018 – Project Audits
Mark Reilly, MEng CEng PIIA MICE CIA
Head of Audit & Risk
MTR Corporation (Crossrail) Ltd

2. Today
• What is a Project Audit
• The Assurance Model
• Delivery of the Project Audit
• The value from Project Audit
• Your thoughts & experiences
How can Project Audits add value?

3. What is a Project Audit?
“A formal inquiry into some or all aspects of the
project, that uses a systematic, independent and
documented assessment using standards and
set criteria”
“Something that I have to
do””
“A tool to give insight
into what is happening
on my project”

4. The Assurance Model

5. Delivering the audit
• Independent
• Accountable
• Planned & co-ordinated
• Risk Based
• Clear reporting and follow-up

6. Where and when to Audit
PROJECT LIFECYCLE
WHEN TO AUDIT

7. Project Audits - detail
PRIORITISING PROJECTS
BUSINESS OBJECTIVE

8. Project Audits - detail
PROJECT
OPERATIONS
FINANCE
COMPLIANCE
IT
THE AUDIT TEAM
THE RISK PROFILE

9. Project Audits - toolbox
• Risk & Control Matrices
• Research
• Testing Schedules
• Alignment to business requirements
• Reporting

10. Pitfalls & successes
Ineffective Governance
There is a lack of coordination between
governance functions causing duplication of
efforts, and there is a lack of communication
between Audit and the PMO.
Establish Effective Governance
Establish effective lines of communication with
other involved governance functions to
establish lines of demarcation.
Delayed Project Involvement
Audit mostly conducts late-stage and post-
project evaluations due to insufficient
awareness of all projects in the organization.
Ensure Early Involvement
Get involved at the earliest possible stage of
the project life cycle.
Insufficient Business Knowledge
The Audit project team has insufficient
knowledge of business risks and processes.
Develop Strong Partnerships
Ensure the project Audit team has a strong
partnership with the PMO and can liaise with
the business.
Common Pitfalls Keys to Success

11. The value
• Early warning of problems ahead
• Insight and improvement of performance
cost/time/quality
• Support wider business initiatives – cost reduction,
change, merger/acquisition
• Confirm / highlight the likelihood of success
• Provide confidence to key stakeholders

12. Your experiences
• Scope / rationale
• Audit approach / resource
• Output / Benefit

13. This presentation was delivered
at an APM event
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