Project audits are usually unwelcome by companies. However, when they are done carefully, they can offer opportunities to rectify mistakes and rescue projects in trouble. Success of a project is determined by careful planning, flawless execution and excellent communication. An audit is similar to a review which is conducted to find out and evaluate the management standard pertaining to projects. These are conducted by an external auditor or a separate department in an office.
Project audit and compliance can also probe into the failure of projects. The scope of a project varies based on purpose, timing and type. Verification audits are pre-planned whereas the assurance and problem response audits are done in response to a particular problem pressing hard against deadline. Whatever the purpose behind doing them, audits must follow certain guidelines to make them effective.
Important Points in Project Audit Planning
Project audit has 4 main characteristics which are:
- Independence
- Alignment
- Institutional Support
- Transparency
Audits are essential and legally necessary. To have the best of audit results, project managers must cooperate with auditors in training, communication and feedback.
Policies and Project Audit Activation Method
To realize the anticipated benefits from audit, each step and deliverable must be clearly defined and communicated properly. The steps include:
- Mission Statement- Auditing the mission statement defines goals, objectives, authority and boundary clearly. It also clarifies the type of audits done.
- Skills Specification Audit- An extensive specification of auditor skills, experience, expertise along with technical skill to review the project.
- Stakeholder Audits- The role and responsibilities taken up by audit as well as project staff is provided in detail under this point.
- Spotting Criteria- Listing the criteria regarding the projects which will be audited. The criteria include internal value, complexity, risk, cost and past records based on which a project is chosen for audit.
- Initiating Procedure- This includes specifying the procedure for informing managers working on particular projects.
- Execution Procedure- This includes an entire list on the execution process including questionnaires, review of documents and personal interview with project staff.
- Reporting Procedure- Reporting the entire process of audit in contained in this point. Each party should be aware of the nature of audit as well as how reports must be provided within the organization.
- Appeal Procedure- In case audit reports need to be challenged, the procedure should be found in this point.
Accurate Implementation of Audit Procedure to achieve result
Accurate audit is the one which provides the correct review of anticipated practices and the actual practices during a project. In order to achieve the result auditing practices must be based on transparent communication. Audits can bring structure to the entire process and helps in realizing the original goals.
Project audit and compliance are important to evaluate the success of a project. Both the parties- the audit staff and the project staff should know the mutual goal for the audit process. For project audits to become successful, transparency is required among the staff.
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