From Financially Focused Project Management

Introduction

All projects need to be closely monitored to ensure they are progressing as planned. Sometimes troubles surface and it becomes necessary to terminate a project before it is completed. The audit activity is designed to give the project every possible chance to be completed and go to closure.

Audit

The term audit is synonymous with analysis, checkup, inspection, review, scan, scrutiny, survey, and view. Audits are used throughout the project life cycle as follows:

  • Project audit

  • Scheduled audits

  • Unscheduled audits

  • Subcontractor and vendor audits

  • Quality audits

  • Project safety audits

Project Audit [1]

The main purpose of a project audit is to assist in satisfying the goals of the project in relation to its contribution to the parent organization's goals. All elements of the project are reviewed in an effort to identify and understand strengths and weaknesses.

The project audit thoroughly examines:

  • Project management

  • Methodologies and procedures

  • Records

  • Properties

  • Budgets and expenditures

  • Degree of completion

The result of this audit is a set of recommendations that can help both on-going and future projects to:

  • Anticipate and identify potential problems before they get out of hand

  • Clarify performance, cost, and time relationships

  • Improve project performance

  • Locate opportunities for future technological advances

  • Evaluate the quality of project management

  • Reduce costs

  • Speed the achievement of results

  • Identify mistakes, remedy them, and avoid them in the future

  • Provide information to the client

  • Reconfirm the organization's interest in and commitment to the project

Scheduled Audits The Audit Letter

When an audit is formally...

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Topics of Interest

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