Project Auditing; Life Cycle

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.

Major Goals of an Audit

1. The caliber of services and products are ensured

A project audit functions as a good guarantee application. It evaluates the task living cycle analyzing the outcomes yielded throughout the various phase, out of the look stage to setup.

When going over the style stage, a project audit reviews the concepts of the design, which includes the evaluation of alternate styles.

Also, it’s evaluated if the answer is prepared for the pilot check and lastly, throughout the setup evaluation, the review assesses as well as confirms the setup in every site in which the item is followed.

The classification of the errors over the method plays a role in the declaration of the issues and also to comprehend whether the task ought to go on by way of a go/no-go choice at every point.

2. Task management quality check

A project audit determines if the project management fulfills the requirements by evaluating whether or not it is fully compliant together with the organization’s policies, procedures, and processes. It further reviews the strategy utilized to simply help determine spaces to be able to expose the necessary enhancements.

3. Company risk identification

Audits help to identify the risk factors due to the company policy which may impact the quality, environment, time, and budget.

The review further assesses the feasibility of the task of the terminology of performance and affordability by offering transparency as well as evaluating resources, time, and costs.

4. Performance improvement

Keeping track of different phases of the Project Management Life Cycle can help the enhancement of the team’s efficiency.

The review additionally enables you to boost your finances as well as source allocation. Determining goals, preventive actions and corrective measures can result in an optimistic task result.

The troubleshooting procedure enables the team to offer answers and also aids in preventing problems that may recur down the road.

5. Learning

One can learn from experience with the help of the audit process as well as from the feedback obtained. Thus, the team can contemplate their very own performance.

Types of Project Audit in Project Management

Undertaking an audit isn’t the very best of occasions for any PM without having a clear overview of the numerous kinds of audits listed in the PMBOK.

Normal Audit

This is called even simply’ an audit’ which is an element of Monitoring as well as the Controlling method team. It’s additionally called Inspection as it’s essentially a QC operation. Assessment is completed after the item is built.

Quality Audit

This is included in the execution procedure and is a critical review of the project. They find out whether the team follows the business’s process.

Risk Audit

These audits are included in the Monitoring as well as the Controlling team. These assist with total procedure advancement. Here you can additionally audit as well as evaluate the usefulness of the project risk management process as a whole.

Procurement Audit

The procurement Audit is an element of the Closing procedure team. As a component of procurements closure, an organized general comment flushes away concerns, sets up instructions mastered, ensures troubles are solved for succeeding tasks as well as identifies positive results as well as problems which justify transfer to various other procurements.

Audit policies and activation procedures

In order to achieve the benefits expected from a project audit, each stage, element and outcome of the audit process must be clearly set out and openly disclosed, including:

Audit mission statement: This document should clearly define the purposes, objectives, authority and limits of the audit operation, as well as the type of audits to be conducted.

Specification of audit competencies: A detailed specification of the auditor’s skills and experience, showing that the audit staff possess adequate expertise to audit the project.

Roles and responsibilities of the actors involved: A detailed statement of all the roles and responsibilities covered by the audit, both for the person conducting the audit and for the project team; including the project manager, team members, project sponsors, clients and any stakeholder.

‘Trigger’ audit criteria: A complete list of all the criteria on the basis of which projects will be selected for an audit. It would be too costly and time-consuming and would defeat the purpose of the audit process itself. Thus, specific criteria should be established to identify projects to be audited on the basis of risk, complexity, internal value, costs, etc.

Audit start procedures: A description of the procedures for the initiation of the audit, including the process by which individual project managers are informed of an outstanding audit and the related preparation requirements.

Audit execution procedures: A list of audit procedures that cover the methods to be used during the audit. This varies according to the type and timing of each audit, but may include personal interviews with project staff, document reviews, questionnaires and more.

Audit reporting procedures: A specification of the audit reporting procedures, which covers how and the way in which the audit results will be reported and reviewed. In order to minimize the threatening nature of the project audit, all parties should be fully aware of how the results will be disclosed and used within the organization.

Audit redress procedures: A specification of all procedures to be followed to appeal and/or dispute the reported audit results.

Project Life Cycle

Initiation

First, you need to identify a business need, problem, or opportunity and brainstorm ways that your team can meet this need, solve this problem, or seize this opportunity. During this step, you figure out an objective for your project, determine whether the project is feasible, and identify the major deliverables for the project.

Project management steps for the initiation phase

• Undertaking a feasibility study: Identify the primary problem your project will solve and whether your project will deliver a solution to that problem.
• Identifying scope: Define the depth and breadth of the project.
• Identifying deliverables: Define the product or service to provide.
• Identifying project stakeholders: Figure out whom the project affects and what their needs may be.
• Developing a business case: Use the above criteria to compare the potential costs and benefits for the project to determine if it moves forward.
• Developing a statement of work: Document the project’s objectives, scope, and deliverables that you have identified previously as a working agreement between the project owner and those working on the project.

Planning

Once the project is approved to move forward based on your business case, statement of work, or project initiation document, you move into the planning phase.

During this phase of the project management life cycle, you break down the larger project into smaller tasks, build your team, and prepare a schedule for the completion of assignments. Create smaller goals within the larger project, making sure each is achievable within the time frame. Smaller goals should have a high potential for success.

• Creating a project plan: Identify the project timeline, including the phases of the project, the tasks to be performed, and possible constraints
• Creating workflow diagrams: Visualize your processes using swimlanes to make sure team members clearly understand their role in a project
• Estimating budget and creating a financial plan: Use cost estimates to determine how much to spend on the project to get the maximum return on investment
• Gathering resources: Build your functional team from internal and external talent pools while making sure everyone has the necessary tools (software, hardware, etc.) to complete their tasks
• Anticipating risks and potential quality roadblocks: Identify issues that may cause your project to stall while planning to mitigate those risks and maintain the project’s quality and timeline.
• Holding a project kickoff meeting: Bring your team on board and outline the project so they can quickly get to work.

Execution

You’ve received business approval, developed a plan, and built your team. Now it’s time to get to work. The execution phase turns your plan into action. The project manager’s job in this phase of the project management life cycle is to keep work on track, organize team members, manage timelines, and make sure the work is done according to the original plan.

Project management steps for the execution phase

• Creating tasks and organizing workflows: Assign granular aspects of the projects to the appropriate team members, making sure team members are not overworked.
• Briefing team members on tasks: Explain tasks to team members, providing necessary guidance on how they should be completed, and organizing process-related training if necessary.
• Communicating with team members, clients, and upper management: Provide updates to project stakeholders at all levels.
• Monitoring quality of work: Ensure that team members are meeting their time and quality goals for tasks.
• Managing budget: Monitor spending and keeping the project on track in terms of assets and resources.

Closure

Once your team has completed work on a project, you enter the closure phase. In the closure phase, you provide final deliverables, release project resources, and determine the success of the project. Just because the major project work is over, that doesn’t mean the project manager’s job is done there are still important things to do, including evaluating what did and did not work with the project.

Project management steps for the closure phase

• Analyzing project performance: Determine whether the project’s goals were met (tasks completed, on time and on budget) and the initial problem solved using a prepared checklist.
• Analyzing team performance: Evaluate how team members performed, including whether they met their goals along with timeliness and quality of work
• Documenting project closure: Make sure that all aspects of the project are completed with no loose ends remaining and providing reports to key stakeholders
• Conducting post-implementation reviews: Conduct a final analysis of the project, taking into account lessons learned for similar projects in the future
• Accounting for used and unused budget: Allocate remaining resources for future projects