204 Project Management commitments of the owner or management in respect of proving infrastructure or other facilities also have to be studied and the impact of inadequacy, if any, in this regard on projest’s success has to be assessed. The project’s organisation, administration, record keeping and controls also come for scrutiny. 11.7 Functions of Project Auditor The project auditor is an expert in measuring, confirming, investigating, and reporting the status of a project with a view to reducing the uncertainties that encompass project. He should not be arrogant and sec himself in the role of a consultant or technical expert. He should not fill his report with recommendation or suggested action plans and should confine himself to interpretation of studied facts. The project auditor is required to give advice to make recommendations. Solicited action plans should be the outcome of the conviction of the enterprise management that the auditor is competent to prepare action plans and has the requisite time and information for verification. Unsolicited action plans should come up only if the project auditor feels strongly that the items covered in his recommendations are very important in the context of the findings of project unit. The auditor will have to evaluate the contract base lines and give his judgement on their adequacy or otherwise for achieving the objectives of the project. Contract baseline comprises the set of documents that establish what the auditor should measure the present and future state of the project. The current documents relating to commandments and agreements relevant to the project constitute the formal contract baseline. There: can be informal baselines also in the form of verbal agreements or document not signed by authorised persons. The contract baselines also relate to contractor's agreements with subcontractors, suppliers, etc., and these will also come under project auditor’ purview. { 11.8 Project Audit Programme ‘After getting a clear understanding of the scope as expected by the owner or audit requester, the next step is to define the project baseline in more detail, in consultation with the project team and with the help of visits to the project sites. This will involve the identification and analysis of the set of contractual documents which collectively define the extent and details of the project's obligations, determination of additional management's resource allocation, pricing and costing assumptions and the development of the detailed audit programme The phase of audit programme execution will have the following steps: * Preliminary examination of the project’s organisation, administration, record keeping, controls and planning and working methods and techniques performed in order to establish the extent to which they are an adequate basis for building up the statements of project status, current and future, Preparing the statements of project status, current and future, giving a detailed list of completed work as compared with the project's performance baseline, recording the costs expended by the project team to carry out the work to date, comparing the fulfillment of coniraciual obligations against commitments, establishing the quality of work done by the project team, and recording observed facts on project planning, project organisation anda Saves Deiraies Braided) aio extitedai alone, cimeboacidead.d, dr Dead olceesais bed Aaidiet), cloeesioh Moss, SaOS, CaS Dsiraes aby Dobos cori wal siOSeaxsA athgs. 11.7 anaes SBease soberie mueleg ebtuo* ASatmy ewaben, oj MecOren, dst ctoden cia aida since adedsoonaS clarestoinh eaMlorgsl statis dich ciochst o%cfuod aoc cReresSaks ext esrlombcdnAcendah cia) desired esins 03d ded engiid qa: ddoa* almanac. esstch 3 sdboinh, Senckd eocin tects oie ctaestrhieodrtaoexmdch cha sift) aonb aechstowtdoyded eget stnad aa aS. madlgi ele’ Sandabrivay sinclen Homan Decdedesorg 3, GmeOcd 8,ck olorasiried BasBanedéch goin oleenitsh {ejsawen TahaeroAaS ahs), SoBe erkiead aha assy awobBabay BnodayS ao aonictal at dsiraniah Sgn’ BOmodanNdeeed, males BALIOF OkiorWa, DESWNA HOH cine eegatc Sain clneesirieh adesed Sores ghtiatd esDemcrle xlodeiecid) esac Sanckiridsh eich. d_sadoeied execs shee Sesitivah, HPe,cinais analdeorbsd aay cirrasiod ee ans Sonim es, HOA eecied ob evaiekees aoewaah my tabs comedy rhowiay cus notad. cbereist Se aiacanaal ck iene ecto a szamcrirednce ce een cord Cozabass eobgs aha rieh a ctunkd cube e.xlocirkd extn camer daakig exPekmOt Sear pried dat adoaded. acoad deotdprish ousirbgtmdch, ded, sende am,Bridoooh PARcadd aahoariOA atouohss aba wabried alneciaa oz, SOsoeIsd oy,tiab wBabed), addges. 11.8 Sages SBE Soera,0 Swdede> esaise Ge Doda Asiodaciaich NoeRrcod ay,Lod aig Sebaesaiay add Bode, cinoBs todah aydleg dockdooky" alate neath cto amedag GANION whees Deeds wamodOocd oenAad seated, s' eon ab, Aadanh nam, Omdebc. ach adjodd mwedny rods rhebaxdod sink Sepsedatay eevtootchd arb cloesdob sapere ys Sit Satie Diotan cate fede wpa acesisoh veciino zor 288 Shah seis enodrt Ormrod abe) ekind anes mabegad adja (BES soaked ad matertHaOabtod sods) SrsUhS Boddy Rookahgs: & Aneriad tosdesd, edOs, cared dedor, Dadowrarieh aay does ada Sods Donarieh sha dose gosteawd aOegain acaidad a3, ays ads Baa} BeOsrda, Ddveden anday aqndahd aoeuckdy aydaba BeomnA Badebsenhe. & neato 43, Saha aha glais Hosni, Sdaiaabahch, cloessdad woabeyabsaly Seaton eeOads ajocor aod dorks Saidaad skgainly Dechahah, fares sotsed adobsdAs sows Islesven s.ch8a dei ivday madarared, aon ste Deda, aaloctal meUQOrid SdsedSabah, BoeOmadah , doce sows) cdoOd sons rheoabeysiny, ARSdahad aba clere clean’, ollorasw togMs aba) dow riebI&d SoriBriviaty camcabshchProject Review and Project Audit 205 staffing, project administration and record keeping, working methods and techniques, communications, project facilities and environment, control administration and controls, and controls over suppliers and subcontractors ctc. Then will follow the preliminary analysis and presentation of results, accompanied by audit report preparation and transmittal. 11.9 Difficulties in Establishing Audit Purpose and Scope The purpose of project audit is to clarify the state of the project in certain key areas for the enterprise management. It is part of a quality control effort. The auditor could often be misled by wrong information or out of date or incorrect documentation. He should have a system of cross verification and checks so as not to be led astray. It might sometimes be found that persons who are to be working on the project are not there and those who are not supposed to be in the project are there. The auditor will have to report these aberrations indicating their implications for the project. Difficulties might arise in identifying the baseline contract or work statement set. Work could be carried out on the basis of verbal agreements without proper contract documentation. Absence of deliverable specifications in the contract documentation. Absence of deliverable specifications in the contract baseline and inadequacies in delivery procedure or acceptance criteria are often problems requiring special attention. The auditor will have to resolve such ambiguities. The acquisition of land and timely handing over the same to contractor is a big challenge. The Government bodies delays the issue of land record. Conclusion Thus, this chapter vividly narrate the significance of Project Audit, steps involved in Project Audit Programme, Auditor’s role and problems encountered in Project Audit. Having identified and analysed a variety of problems pertaining to the formulation and implementation of the project audited by him, the project auditor can evolve guidelines that can be useful for other projects, present or future of the enterprise. Key terms used: Performance evaluation, Abandonment analysis, Milestone completion, Critical management issues, Project audit Self Assessment Questions 1. What are the special features of Project Review by World Bank? 2. Describe the review process of an industrial project. 3. How the financial review can be made successfully? 4. Why project review should be made? 5. Explain the process of evaluation of project management system of an organisation. 6. How will the improve the performance of project management be improved? 7. Give an overview of project management environment in a developing country like India. 8. What is Project Audit? Explain its importance. 9. State the objectives of Project Audit. 10, Explain the steps in Project Audit Programme. 11, Explain the functions of Project Auditor. 12, State the difficulties in Project Audit. 13. How the project audit differs from financial audit?RoR, cores esdOs aha cams SeBont, Seated Sore cic doariel, dotetsrieh Oireisoh Poste addy albeid, Doboges exten cts Sesbodparteh eday aor ondch cindy 3 RB. Sous ayRos Oras ach Omodry afaydobay embeded, dost 11.9. 28s eroded ahah eytyaha ay 2adIO Rooddrieh Soto jot Neiraksrwh gem gaiom gaiwO diaeadad ASabey Pa sawehed nla SOUS enededsnAd. ach rheneies abodes eaty.d woriaahe dan cowadoct Bey say ai addlemciaicy Soahich deaioak, donde 3. 3a, SOBerisey aoitentwaneortan Ambani sociated coos ‘emo escien oaks abe Obai rch Leocrth evokmriesbch AOaied! egos canned Pie Besrls coon ed Bontehey Gylayweich, cect mnendabe) Snckasbonc! SBeakore enticth 3, Sloe evar Sebkiesaimnc Sdeatar chat si Sede mote gad exizn Aes = Sb necitich sOatsideearbdS, cine aaRiectseatRaocd rb acon amok), eins Bern, Geeqa. Che apeles otestd chal, mnelet whtsaiyemoad eaootiehad Dark, Se sbaoeret ang aby ayeieg obese) achonrba waix{rivehy a aiaon aso. =i eet inBas al neesson) aegeccew atk eorbanel, coeoSc De atxp rida roebBs aio Grd Sot clara Cx sOdaer ass clare sialyl tars enc. A ets ar stares pesesesichs, 4, Matera aibBeoSat), 08 ctroctcieeh? 5. od OBereime Oa. Os eiPey Anais a3 advair, ase 6, hmensasy sree saad gebdabay Berl owOadahey? 7. taSciogs eda}A bew coal Se) cloewAm Dairies HOU Lock eexielaesttatsl Dea. 8. Sycley ORs" Soridens? cad ahaa ston. Oamaley, ealzestsl erucjesiicth, 202. 10. malay OES aeraosds soda, O02. 11. Bayete SBeI* moberieay DAO%. 12. 13, resdatee ai deetsSais sonahe dea eontchnas aii aah