Project auditing involves a systematic review of a project's management, methodologies, and outcomes to assess its current status, identify strengths and weaknesses, and provide recommendations for improvement. The primary goals include enhancing efficiency, ensuring customer satisfaction, and evaluating future potential. A successful audit facilitates better decision-making, addresses issues encountered during the project, and offers valuable lessons for future projects.

1. PROJECT AUDITING
By Sajna Fathima
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Project Audit
A formal review of any aspect of a
project.
An audit is a systematic, independent,
documented assessment using standards
and set criteria.

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Purpose & Goals
 Efficiency in meeting both the budget
and the schedule
 Customer impact/satisfaction
 Business/direct success
 Future potential

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The Project Audit- Approach
The main purpose of an audit is to help
achieve the goals of the project
All facets of the project are studied
The strengths and weaknesses are
identified
Recommendations are prepared to help
current and future projects

5. Project auditing
 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.
 Project auditing can help you assess the
current state of a project, and tells you if your
project management processes are being
followed.
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6. benefits
A project audit provides an opportunity to
uncover the issues, concerns and
challenges encountered in the execution
of a project.
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Depth of the Audit
Time and money limit the depth of an
audit
Audits are distracting to those working on
the project
A poor audit result will lower morale on
the project

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Types of Audits
 General Audit
 Detailed Audit
 Technical Audit

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Timing of the Audit
All significant projects should be audited
Larger projects may be audited several
times
An audit may also be conducted after the
project is over (post-project audits)

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Format and Use of the Audit Report
1. It should facilitate the comparison of
actual versus predicted results
2. Significant deviations should be
highlighted
3. Reasons for significant deviations
should be given
4. Plans for resolving negative deviations
should be discussed

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Audit Information
1. Introduction
2. Current status
3. Future project status
4. Critical management issues
5. Risk management
6. Caveats, limitations, and assumptions

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Responsibilities of the Project Auditor
Be honest and ethical
Be independent
Tell the whole truth
Seek help for technical issues

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The Project Audit Life Cycle
 Project audit initiation
 Project baseline definition
 Establishing an audit database
 Preliminary analysis of the project
 Audit report preparation
 Project audit termination

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Some Essentials of an Audit/Evaluation
Need to select an audit team with
experience and expertise
Auditors need access to top management
Auditors need access to project
personnel and others
Auditors need access to all records

15. Three phases
A project audit consists of three phases:
Phase 1: Success Criteria and
Questionnaire Development
Phase 2: In-depth Research
Phase 3: Report Development
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Project Audit Recommendations
Identify problems earlier
Clarify scope, cost, and time relationships
Improve performance
Locate technological advances
Evaluate quality
Reduce costs
Improve risk identification

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The Project Audit-outcomes
 Current status of the project
 Expected status of the project
 Status of critical tasks
 An assessment of potential risks
 What lessons can be applied to other
projects?
 What are the limitations of the audit?

18. Conclusion
The purpose of a project audit is to
identify “Lessons Learned” that can
help improve the performance of a project
or to improve the performance of future
projects by undertaking a forensic review
to uncover problems to be avoided.
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