AUD 1301

INTERNAL AUDITING
PROJECT MANAGEMENT
 a) Getting to know the Professor and the Students
b) Discussion on the Syllabus, CIB, Grade Computation
c) Creation of groups for case study/assignment

Activities
 PROFESSOR/FACILITATOR

More than nine years in the academe; handled accounting, internal auditing subjects
 PROJECT MANAGEMENT

Five major project management variables

are - time, scope, cost, quality, and risk.

Overview
 PM STATISTICS
In 2020, 11.4% of every dollar invested in projects was wasted due to poor performance
or management.

Organizations end up wasting 12% of their valuable resources due to poor project
management.
Confusion surrounding job roles &
responsibilities is a potential hurdle to a project’s
Most managers are managing multiple projects.
success.

Only 2.5% of companies completed 100% of their

projects successfully
Hectic workload is one of the main reasons for
employee burnout
Hybrid project delivery is the most common approach.

Overview Source: https://www.proofhub.com/articles/project-management-statistics

https://monday.com/blog/project-management/guide-to-project-management/
Definition
Project management is the application of methods,
processes, skills, experience, and knowledge to complete
projects in accordance with the project acceptance
criteria and within the agreed parameters.

Project management (PM) is defined as the framework used to guide

your team to success—this includes your team objectives, tools, and
techniques both over the long-term and your day-to-day work.

Project management is the application of processes, methods, skills, knowledge and

experience to achieve specific project objectives according to the project acceptance
criteria within agreed parameters. Project management has final deliverables that are
constrained to a finite timescale and budget.

Project Management
• Redesign of the commercial department in the steel industry. ...
• Off-shoring of shared service departments in the chemical industry. ...
• Support of a company merger in the beauty industry. ...
• Development and implementation of a lean leadership academy in the semiconductor
industry.
 A piece of planned work or an activity that is finished over a period of
time and intended to achieve a particular purpose.

Projects require a team of people to come together temporarily to focus on specific project
objectives.

Project management is concerned with managing discrete packages of work to achieve

specific objectives. The way the work is managed depends upon:

The scale, significance and complexity of the work are obvious factors: relocating a small
office and organizing the Olympics share many basic principles, but offer very different
managerial challenges. Objectives may be expressed in terms of:

• outputs (such as a new HQ building);

• outcomes (such as staff being relocated from multiple locations to the new HQ);
• benefits (such as reduced travel and facilities management costs);
• strategic objectives (such as doubling the organization’s share price in three
years).
A PROJECT represents a single, focused endeavour. A program is a collection
of projects – together all the projects form a connected package of work. The different
projects complement each other to assist the program in achieving its overall
objectives.
PROJECTS vary in duration, while a
program is generally of longer
duration, since the start of the
program will be the start of its
first project, and the end of the
program will be the end of its last
project. Projects focus on desired
results or outputs, where programs
focus on desired outcomes or
benefits.

The key difference is in the focus

of the management
effort; project management is
focused on creating a
deliverable as efficiently as
possible, program
management is focused on
maximizing the benefits
realized by the organization.
 PM SKILLS
1. Earning a Diploma or Certificate Course in Project
Management
2. Practice, Practice, Practice

Project Management
Certifications
 Qualities of a good
project manager
1. They Inspire a Shared Vision
“My belief is that communication is the best way to
2. They are a Good Communicator create strong relationships”

3. Integrity
8. They Own Proficiency

4. They Possess Leadership Skills

9. They are Great Problem Solver!

5. They are Good Decision Makers

6. Expert in Task Delegation 10. They Know What is Collaboration

11. Should Possess Good Negotiation Skills

7. They are Well Organized
13. Achieving the Project Benefits
12. Managing the Project Life Cycle
Source: https://www.knowledgehut.com/blog/project-management/characteristics-of-a-good-project-manager
project management
 project management
• The application of knowledge, skills, tools and techniques to project
activities to meet project requirements

Skills

+
Project
Knowledge
Management

+
Tools and Fundamentals of project management include every
Techniques process that takes the project from initiation to
completion and make it a success.
 project management
CHARACTERISTICS

• Coordinated and controlled activities

• A temporary organization
• A time and cost constrained operation
• Application of knowledge, skills, tools and techniques
 What is a project

A project is an activity that:

• is temporary having a start and end date
• is unique
• brings about change
• has unknown elements, which therefor create a risk
 What is a project

• A job that has a beginning and an end (Time)

• A specified outcome (Scope)
• At a stated level of Performance (Quality)
• At a budget (Costs)
 project VS OPERATION

• Operations are permanent endeavors “going and repetitive” that

produce repetitive outputs, with resources assigned to do basically
the same set of tasks according to the standards in a product life
cycle.

• Projects are temporary endeavor undertaken to create unique

products or services
 project

• Means to achieve “Strategic Plan” of an organization

• One or more of the following Strategic Considerations give rise to

Projects:
ü Market demand
ü Customer request
ü Strategic opportunity/business need
ü Technological advance
ü Legal requirements
 project

A project can create:

1. A product (component of another item or end item)

2. A service (a business function to support production logistics)

3. A result (an outcome or document, such as R & D project develops

Knowledge, Market Survey)
 project Challenges
Time

Scope Cost

Risk Quality

Customer
Satisfaction

Pushing too much in one direction causes problems on the other.

It’s called the “Project Constraints”

 project CHALLENGES

• Objectives not properly defined

• Insufficient planning and coordination of resources
• Poor estimation of duration and cost
• Incomplete, unrealistic and outdated project plans
• Lack of communication
• Inadequate definition and acceptance of roles
• Poor commitment to the project by the team
• Weak control processes
• Lack of risk analysis
• Lack of good quality controls
 COMMON project TERMS

• Deliverables - tangible things that the project produces

• Milestones – dates by which major activities are performed
• Tasks – also called Actions. Activities undertaken during the project
• Risks – potential problems that may arise
• Issues – risks that have happened
• Gantt Chart – a specific type of chart showing time and tasks
• Stakeholder – any project or group of people who maybe affected by
the project
PHASES OF project MANAGEMENT

Close project

Execute and
complete tasks

Planning

Initiating
 PHASES OF project MANAGEMENT

Some steps in the initiation phase include:

Initiating • Communicating with stakeholders to understand the purpose and desired outcomes of
the project
• Identifying project scope
• Determining SMART goals (specific, measurable, achievable, relevant, and time-bound)
• Clarifying resources like budget and time constraints
• Confirming team size and roles required
• Determining how often and which stakeholders will be involved throughout the project
• Compiling a project proposal and project charter
 PHASES OF project MANAGEMENT

Tools and documents used in the initiation phase can include:

Initiating
• Project proposal: The project proposal defines a project and outlines key dates,
requirements, and goals.
• Project charter: This is a definitive document that describes the project and main
details necessary to reach its goals. This can include potential risks, benefits,
constraints, and key stakeholders.
• RACI chart: A RACI chart plots the roles and responsibilities of members on a
project team.

RACI is an acronym that stands for responsible, accountable, consulted and informed. A RACI
chart is a matrix of all the activities or decision making authorities undertaken in an organization set
against all the people or roles.
 PHASES OF project MANAGEMENT

Planning
In the planning phase, you’ll determine the steps to actually
achieve the project goals—the “how” of completing a project.

• Establish budgets, timelines, and milestones, and source materials and

necessary documents.
• Involves calculating and predicting risk, putting change processes into place,
and
• Outlining communication protocols.
• If the initiation phase is assembling your troops, the planning phase is
deciding what to do with them.
 PHASES OF project MANAGEMENT

The planning phase can include the following steps:

Planning
• Deciding on milestones that lead up to goal completion
• Developing a schedule for tasks and milestones, including time estimates
and potential time buffers
• Establishing change processes
• Determining how and how often to communicate with team members and
stakeholders
• Creating and signing documents such as non-disclosure agreements (NDAs)
or requests for proposal (RFPs)
• Assessing and managing risk by creating a risk register
• Holding a kick-off meeting to start project
 PHASES OF project MANAGEMENT

Planning Tools you might use in a this phase include:

• Gantt chart: A horizontal bar chart in which members can see what
tasks must be completed in what order, and how long each is
expected to take
• Risk register: A chart that lists risks associated with the project, along
with their probability, potential impact, risk level, and mitigation plans
 PHASES OF project MANAGEMENT

Execute and Executing a project means putting your plan into action and keeping
complete tasks the team on track.

Generally this means tracking and measuring progress, managing

quality, mitigating risk, managing the budget, and using data to
inform your decisions.

Specific steps might include:

• Using tools like GANTT or burndown charts to track progress on
tasks
• Responding to risks when they manifest
• Recording costs
• Keeping team members motivated and on task
• Keeping stakeholders informed of progress
• Incorporating changes via change requests
Some tools you might use include:
• Change requests: These are documents
used to propose changes to a project’s
scope or goals
• Burndown chart: This chart breaks down
tasks on a granular level and visualizes
the amount of time remaining
 PHASES OF project MANAGEMENT
In the closing phase of the project management lifecycle, you’ll
Close project conclude project activities, turn the finished product or service over
to its new owners, and assess the things that went well and didn’t
go so well. It’ll also be a time to celebrate your hard work.

Tools used in the closing phase

Steps in the closing phase can include: include:
• Impact report: This report compiles
• Conducting retrospectives and take notes of a series of metrics that showcase
changes you can implement in the future how your project made a difference
• Communicating to stakeholders of the end of the and is presented to your
project and providing an impact report stakeholders.
• Communicating with the new owners of a project • Project closeout report: A project
• Creating a project closeout report closeout report provides a summary
of your project’s accomplishments,
• Celebrating the end of the project and your and provides key learnings for
successes future project managers to
reference.
 FIVE PROCESS GROUPS

Initiating

“The Process Groups are not

Planning project life cycle phases” – Project
Management Institute (PMI)

Executing

Monitoring
and
Controlling

Closing