Professional Documents
Culture Documents
c
Ali Zain-ul-Abideen
M.Israr Khan Niazi
Farhat Abbas
Junaid Iqbal
Rizwan Mansoor
echnological
he technical activities which will have to be
undertaken, maturity of technology, company's
technological position.
Internal
otential technical success, familiarity with the area
of the project, role of individuals and of different
functions within the organization
ypical nputs valuation
Financial
Expected benefit, likely cost, both of project and resulting
actions
Market
Size and attractiveness of the market, competitive position
Business
Clarification of objectives, fit with company's strategy,
level of top-management support, key success factors
ethods of valuations
he Methods/criteria more often used for evaluating
a project are-
Simple Rate of return (SRR)
ayback eriod (B)
Benefit Cost Ratio (BCR)
Net resent Value (NV) or Net resent Worth
(NW)
Internal Rate of Return (IRR).
imple ate of eturn
he SRR is a commonly used criterion of project
evaluation. It basically expresses the average net
profits (Net Cash Flows) generated each year by
an investment as a percentage of investment over
the investment¶s expected life
SRR = Y/I
Where
Y = the average annual net profit (after allowing
depreciation) from the investment
I = the initial investment
ay ]ack eriod (B)
he ay back period is the length of time required
for an investment to pay itself out.
2 22 set of policies, procedures or
requirements used as a reference.
2 2 records, statements of fact or
other information, relevant to the audit criteria and
which are verifiable (can be quantitative or
qualitative)
2 ë22 result of the evaluation of the
collected audit evidence against audit criteria
2
2 outcome of an audit, reached
by the audit team after consideration of the audit
objectives and all audit findings.
2 organization being audited.
2 person with the competence to conduct
an audit.
2
one or more auditors conducting an
audit (one being appointed as audit team leader).
2 person who provides specific
knowledge or expertise with respect to the subject to be
audited.
2 set of one or more audits planned for a
specific time frame and directed toward a specific
purpose.
2 description of the on-site activities and
arrangements for an audit.
2 extent and boundaries of an audit
(typically includes a description of physical locations,
organizational units, activities and processes, as well as
the time period covered)
demonstrated capability to apply
knowledge and skills
ypes of udit
Management Audit
Internal Audit
External Audit
Financial Audit
Non-financial Audit
roject udit
he project audit is a thorough examination of the
management of a project, its methodology and
procedures, its records, its properties, its budgets
and expenditures and its degree of completion.
2
2
V 1. Current status of the project
V 2. Future status
V 3. Status of crucial tasks
V 4. Risk assessment
V 5. Information pertinent to other projects
V 6. Limitations of the audit
Ô
V 2
2 - usually conducted when a follow-up to
the general audit is required
V
2
2 - generally carried out by a qualified
technician under the direct guidance of the project
auditor
he first audits are usually done early in the
project¶s life.
2
V Allow for corrective changes if conditions have
changed and for concentration on project
progress and performance.
2
V ake a broader and longer-term view of the
project¶s role in the organization and emphasize
improving the management
he udit rocess
Initiation
V 4. 2
he judgment phase
Comparison of actual to standard
he roject udit ife- ycle
V 5.
22
resent findings to M first
hen, prepare final report
V 6.
2
22
Review of audit process
Disbanding of team
esponsibilities of roject uditor/valuator
First and foremost the auditor should ³tell the
truth´
2
V Assemble a small team of experienced experts
V Familiarize the team with the requirements of
the project
V Audit the project on site
esponsibilities of roject uditor/valuator
2
V roduce a written report according to a pre-
specified format
V Distribute the report to the project manager and
project team for their response
V Follow up to see if the recommendations have
been implemented
ssentials of an udit/valuation
For an audit/evaluation to be conducted with skill
and precision, and to be generally accepted by
senior management, the client and the project team,
several conditions must be met
V he audit team must be properly selected