IIA Government Auditor Conference
San Diego California
March 11th 2015
The Secrets of
Audit Project Management
for Government Auditors
STRONGHOLD
Kenneth Mory
CISA, CIA, CPA, CRM
Kenneth
J. Mory
- CISA,
CIA,CIA,
CRMA,
CPACPA
Kenneth
J. Mory
- CISA,
CRMA,
STRONGHOLD
Ken is a recognized speaker at professional seminars. He has over 30 years experience
in audits, IT, finance, operations, and strategic planning. He has worked in both the
public and private sectors. He has extensive experience in IT auditing, governance,
project planning, systems development, operations, security and DR/CP.
Previously, Ken was the City Auditor for Austin Texas, Chief of Audits for the
County of San Diego and the CFO for several companies, including Bellsouth
Wireless Data, RAM Mobile Data, TelCel Cellular, SA, and Link
Telecommunications. He also worked for BellSouth Corporations’ General Internal
Audits and began his career with Arthur Young & Company, CPAs.
Currently he serves on the GAO’s Green Book Advisory Committee, IIA’s Advisory
Committee for the American Center for Government Auditing and IIA’s Editorial
Advisory Committee, ALGA’s Professional Issues Committee and was 2013 Chair of
the IIA’s Public Sector Committee. Ken has an MS from the University of
Pennsylvania and MBA from University of Alabama – Birmingham.,
THE SECRETS OF AUDIT PROJECT MANAGEMENT
I. INTRODUCTION &
OBJECTIVES
The Secrets of Audit Project Management for the
Public Sector
Failing to deliver audit projects on time and on budget is the
bane of auditors and audit managers. Late delivery and cost
overruns can significantly impact the credibility and value of
the audit entity and the auditor.
What most auditors fail to clearly understand is that an audit
is just a project and that the same skill sets that a good
project manager acquires are what is needed for managing an
audit.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Upon the completion of The Secrets of Audit Project
Management, participants will be able to:
• Understand the basics of Project Management (PM)
• Identify the differences and similarities between Public
Sector Auditing - Project Management (PSA-PM)
• Understand project planning, scheduling, control, and
decision support concepts and methodologies
• Identify ways to fail and ways to succeed
• Learn to apply these techniques to improve productivity:
improving cost control, resource use, and timelines
• Understand how to apply using audit-specific real world
examples and techniques
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Three things you would like to get out of this
seminar.
Three obstacles to your making becoming a
skilled audit project manager
THE SECRETS OF AUDIT PROJECT MANAGEMENT
II. BASICS OF
PROJECT MANAGEMENT
THE SECRETS OF AUDIT PROJECT MANAGEMENT
The Basics
• What is a project?
• Define project management and the project
management process
• Why project management for audits?
• Expanding project management key
competencies
• Why do projects succeed? Why do they fail?
Exercise - Take the test
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Exercise 1 – Take the Test
To do the audit right:
• I always get all the resources I need
• I always know the objective (s) of the audit
• I get all of the work time required
• I get all of the schedule time required
• I have the necessary authority
In your groups select a presenter and a scribe and
answer the following
1. Discuss the why of your answers.
2. How does this affect the success or failure?
3. How would you resolve any challenges identified?
THE SECRETS OF AUDIT PROJECT MANAGEMENT
A Comparison
Project Management
A project is a temporary endeavor undertaken to
create a unique product, service or result
Program Management –
has no end and is ongoing
and indefinite
Priorities Management separation of urgent from
the important
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Distinct from normal
circumstances of
everyday work and:
Definition
of a
Project
•Is goal oriented
•Consists of connected and
interrelated tasks that can
be placed in sequence
•Is of limited duration
•Is unique and non-routine
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Definition of an Audit [IAPPF]
… it helps an organization accomplish its
objectives by bringing a systematic,
disciplined approach to evaluate and
improve the effectiveness of risk
management, control, and governance
processes…
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Key Competency Areas
1. Managing Others
2. Focus Areas
• Focus on communication
• Motivation
• Problem solving & Root Cause
Analysis
3. Key attributes
4. Major responsibilities
5. Ways to succeed
6. Ways to fail
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Why do Projects Fail?
•
•
•
•
Procrastinate on issues
Politicized
Constant rescheduling
Focus on administration not real
management
• Micromanage qualified staff
• Focus on new instead of needed tools
• Fail to monitor project
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Exercise 2 - Why do Projects Succeed?
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Effective Project/Audit Managers:
•
•
•
•
•
•
•
Use PM effectively
Open to being and expecting honesty
Flexible in approach
Are good time managers
Are great communicators
Maintain a healthy perspective
Have effective decision making skills.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
III. MAJOR PROJECT &
AUDIT PROCESSES
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Compare Major Processes in the Life of a
Project vs. Life of an Audit





Processes of a project compared to audit
How is project management relevant to audit?
The “constraint” triangle
9 knowledge areas of project management
Identifying problems early in the process
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Major processes in the project life cycle
1) Initiating
2) Planning
3) Executing
4) Monitoring and Controlling
5) Closing
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Major processes in the audit life cycle
1)
2)
3)
4)
5)
6)
7)
8)
9)
Identify risk area*
Identify stakeholders*
Prepare for the audit
Preliminary survey
Internal control documentation/fieldwork
Observations and recommendations
Closing
Evaluation
Follow-up *
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Exercise 3: Compare Audit to Project Steps Worksheet
1)Identify risk area
2)Identify stakeholders
3)Prepare for the audit
4)Preliminary survey
5)Internal control
documentation
fieldwork
6)Observations and
recommendations
7)Closing
8)Evaluation
9)Followup
4)
M
an onit
d
or
in
Co
g
nt
r
5) olli
n
Cl
os g
in
g
g
ng
i
n
t
u
ni
c
n
e
la
P
Ex
)
)
2
3
In
iti
at
in
g
Entity or sub
entities
1)
Audit Processes
Project Processes
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Exercise 2: Drawing parallels
1. Which audit steps are most like the
project steps?
2. What gaps exist if any?
3. Does the PS environment impact the
steps?
Select a presenter and a scribe from your
group.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Relevance of PM to PSA
•
•
•
•
•
Identifying the benefits of adopting a PM focus
The relationship of planning to control
Key factors in PM
Common workflow problems
Considering changing risk horizon and
vulnerabilities?
• Realistic time estimates
• The right mix of resources
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Project management is like juggling a dozen
balls. You'd have to keep your eye on all of
them, and know when to catch each one. If
you missed just one, this could spoil your
whole performance.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Scope
The Audit Project Constraint Triangle!
PROJECT MANAGEMENT STANDARDS
• Defines Project
Management
• Project Management’s 9
Knowledge Areas
• Integration
• Scope
• Time
• Cost
• Quality
• Resource
• Communications
• Risk
• Procurement
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Representative Life Cycle of an Audit Project
Phase 0
Phase 1
Phase 2
Phase 3
Audit Initiation/ Identify Risks
Risk
Fieldwork
Determination Concept
and Controls/ Assessmnent/ / Develop
of Need/SAP or exploration and Clarify Overall Refine Obejective/ Findings
Request
need
Objective
Identify Audit
Procedures
Milestone 0
Audit Concepts
Preliminary
Research Study
Mgt Approval
Milestone 1
Audit Concepts
Approach
Approval
Milestone 2
Approval
Milestone3
Fieldwork
Management
Approval
Phase 4 Phase 5
Message Reporting/
Approach/ Issue
Conduct Messages
Additional
Fieldwork
Milestone 4
Major
Modification
Approval
Milestone 4
Approval
Major
Modification
Approval
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Exercise 4: What does a successful audit
look like? (hint: outcomes and quality.)
From the PS entities perspective?
From the auditors perspective?
From the auditee’s perspective ?
Compare the steps in an audit to steps in a project.
Select a presenter and a scribe from your group
THE SECRETS OF AUDIT PROJECT MANAGEMENT
III. COMPETENCY
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Key Attributes of an Audit Project
Manager
1.
2.
3.
4.
5.
6.
Leadership
Communication Skills
Problem/Risk Analysis
Root Cause Analysis
Management perspective
Professional standards/ operating
environment
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Manager “Gets It”
•
•
•
•
•
•
•
•
“why”?
“what is”?
“what is to be”?
the “Gap?
where?
who?
how?
when?
THE SECRETS OF AUDIT PROJECT MANAGEMENT
RCA PROBLEM DEFINITION
3/22/2016
32
THE SECRETS OF AUDIT PROJECT MANAGEMENT
How do I do that?
–
–
–
–
–
–
–
–
Creative
Knowledgeable
Owns it
Curious
Technically skilled
Disciplined
Organized
Risk taker
THE SECRETS OF AUDIT PROJECT MANAGEMENT
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Communication Skills
1.
2.
3.
4.
Effective written and oral
Able to articulate
Body language
Listening
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Problem Solving
… the ability to visualize, understand,
articulate and solve both complex and
uncomplicated problems and concepts
and make logical decisions that are
sensible and based on available
information.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
RCA PROBLEM DEFINITION GUIDELINES
 systematic approach
 knowledge of business
process
 part of audit plan
 does not prevent
problem from
happening…
 a double loop solution to
correct
3/22/2016
 often more than one
root cause
 approach must have
integrity
 stop talking = listen
 find cost benefit
point
37
THE SECRETS OF AUDIT PROJECT MANAGEMENT
RCA & 5 Elements of a Finding
Criteria
(What
should be)
-
Condition
(What is)
=
Effect
(Risk or
potential
impact)
+
Recommendation
(How to realign)
=
Criteria
(What
should be)
Cause
(Why the difference
exists – root cause)
Analysis of a Cause
Process
(Methods, Tools,
etc..)
Communication
(Mgt attitude, etc.)
Criteria
(Appropriateness, Skill Level
knowledge, clarity, (Hiring, training, staff
written, verbal, etc..)
fit, etc..)
3/22/2016
Evidence
Cause
Qualitative
&
Effect
Vs.
Quantitative
38
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Management Perspective
• Conceptualize: See the “Big Picture”…
Provide Insight… and translate to key details
• Who cares? Know overall priorities for
Stakeholders
• Ability to focus on key problem(s)
• Understand “tipping points”
[That is: foresee, analyze, focus,
externalize, grasp, visualize, etc.….]
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE OUTLINE (Cont’d):
IV. Improving Audit
Productivity
• VII. Resources
Your audit plan and horizon risk issues
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Analysis of Costs & Influence
Project
Charter
PMP
Accepted Archived
Deliverables Documents
Audit Project Management Outputs
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE How
to Improve Productivity?
• Defining the audit project
• Identifying changing risk horizons and
vulnerabilities
• Optimizing planning
• Developing a work breakdown structure
• Developing early warning systems
• Optimizing fieldwork effort
• Effective & timely reports
• VII. Resources
Your audit plan and horizon risk issues
THE SECRETS OF AUDIT PROJECT MANAGEMENT
An Audit Project Process Flowchart
THE SECRETS OF AUDIT PROJECT MANAGEMENT
PS Risk Assessment Identifying
Problems Early in Process
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Optimizing Planning Memo
•
•
•
•
•
•
•
Environmental scan (360o Plus)
Critical information (i.e., criteria)
Key resources (staff, SME, other)
Audit program
Audit Staff
Budget/schedule
Buy in & approval
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Optimizing Planning Questions
• What audit needs to be done? (type, scope,
criteria, real project)
•
•
•
•
•
•
Why risk requires it be done?
How should we conduct it?
What the critical path or sequence ?
Where does the audit need to be conducted?
Who should do the work? (staff/sme/other)
How do we measure progress?
THE SECRETS OF AUDIT PROJECT MANAGEMENT
WBS as Task List
Task # Description Duration Predecessors
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Work Breakdown Structure - WBS
Audit Project
Major Task
Major Task
Sub Task
Sub Task
Level 2
Level 2
Sub Task
Level 2
Level 2
Sub Task
Level 2
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Timeline
DATE
MILESTONE
POSITION
1/23/2012
Project Start
2/24/2012
DATE
MILESTONE
POSITION
25
6/15/2012
Milestone 6
-15
Milestone 1
10
6/30/2012
Milestone 7
15
2/24/2012
Milestone 2
-10
7/15/2012
Milestone 8
-20
3/1/2012
Milestone 3
15
7/30/2012
Milestone 9
20
3/15/2012
Milestone 4
-15
10/23/2012
Milestone 10
-15
5/15/2012
Milestone 5
15
12/31/2012
Project End
15
Examples of
Project Management Software
ManagePro
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE OUTLINE (Cont’d):
5 Guidelines for Estimates
1.
2.
3.
4.
5.
Ownership (buy in)
Level of detail (accuracy)
Distribution
Staff productivity
Time/cost/scope tradeoffs
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE OUTLINE (Cont’d):
Guidelines for Estimates
Distribution
•
•
•
•
Don’t politicize
Be honest
Clear requirements first
Probable - not “best or worse
case”
THE SECRETS OF AUDIT PROJECT MANAGEMENT
OURSE OUTLINE (Cont’d):
Again “Don’t politicize, Be honest,
Probable - not ‘best or worse case’ ”
The Worstest Case
Don’t Over Do It
Examples of
Project Management Software
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Don’t UNDER Do It
• VII. Resources
Your audit plan and horizon risk issues
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE OUTLINE (Cont’d):
Guidelines for Estimates
Productivity
•
•
•
•
•
•
Competency
Buy in
Number of activities or tasks
Interruptions
Errors
Administrative & personal time
SECRETS
OF AUDIT PROJECT MANAGEMENT
COURSETHE
OUTLINE
(Cont’d):
Guidelines for
Estimates
Trade-offs:
• Adding staff can be
counterproductive
• Multiple
assignments lead to
increasing drops in
productivity
THE SECRETS OF AUDIT PROJECT MANAGEMENT
V. Project Controls
• VII. Resources
Your audit plan and horizon risk issues
Examples of
Project Management Software
ManagePro
THE SECRETS OF AUDIT PROJECT MANAGEMENT
UNDERSTANDING PROJECT CONTROL?
•
•
•
•
•
•
•
•
What is it?
Course correction
Controlling what?
Elements of good control
Needed information
Actual vs plan work (GANTT Chart)
Efficiency
VII. Resources
Your audit plan and horizon risk issues
THE SECRETS OF AUDIT PROJECT MANAGEMENT
WHAT IS PROJECT CONTROL?
A project management function that involves
comparing actual performance with planned
performance and taking appropriate corrective
action (or directing others to take this action)
that will yield the desired outcome in the project
when significant differences exist.”
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Course Correction
• Are you where your suppose to be?
• What can affect you in the future?
• Will you end up where you are
suppose to?
• Focus is to minimize navigational
error!
• VII. Resources
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Project Initiation Document Checklist
PID Item
Section 1: What is the audit project all about?
Title
Background
Purpose, objectives & measurements
Scope, constraints & exclusions
Deliverables
Milestones
Section 2: Why should the audit project be completed?
Business case (benefits, options, cost, time)
Risk Analysis ( Identification, prevention, management, Monitoring)
Section 3: Who will work on the audit project?
Roles & responsibilities (sponsor, manager, team)
Audit organization charter and structure
Section 4: How and when will the audit project be delivered?
Initial project plan)
Assignments & milestones
Schedule (i.e. Gantt Chart)
Personell Requirements
Project Control
Quality
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Controlling what?
Consumption of resources
 Schedule
 Work effort
 Other
Deliverables
 Requirements
 Quality
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Elements of good audit project control
• Measurement baseline
• Processes and procedure for gathering
data
• Good data
• Ability to analyze past, current and
future !
• VII. Resources
Your audit plan and horizon risk issues
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Data needed for scheduling
• Scheduled start & finish dates
• Actual start & finish dates
• Dates of activities underway:
• Anticipated start
• Actual start
• Originally scheduled completion
• Estimated completion
• Description of progress
• VII. Resources
Your audit plan and horizon risk issues
THE SECRETS OF AUDIT PROJECT MANAGEMENT
What is good data?
•
•
•
•
•
•
•
•
Relevant
Reliable
Accurate
Useful & understandable
Timely
Sufficient
Appropriate
Appropriately reported
Exercise 5: Dearly Departed:
The audit was planned by an auditor who had 20 years experience in auditing with over 15 as an Auditor in charge.
He had initiated and completed the audit plan for contract compliance with respect to federal grants. This included
the planned methods and procedures necessary to conduct the fieldwork.
With very short notice he retired from the entity and was not forth coming in transferring his knowledge and also
to sign off on work he had completed. He indicated he was not comfortable in signing off on his work.
The new auditor in charge had been with the audit entity for less than 3 months. She accepted the work performed
by the exiting AIC without verifying its appropriateness and sufficiency of the documentation received but did do
a cursory review. The audit director had prepared an aggressive audit plan that required the staff to finish projects
on budget in order to meet productivity goals. The new AIC and her manager decided to rely on the work already
performed and complete the audit.
At the end of field work the AIC presented the preliminary draft report to the auditee. The auditee became agitated
stating that the conclusions reached were just not true. When addressing the auditees concerns the auditors
determined that there was incomplete and missing documentation in the planning phase which led to erroneous
findings and conclusions. The rework of the audit caused its conclusions and reporting to be delayed and caused
the credibility of the auditor’s office to be significantly damaged with the auditees.
Get together in your group to answer the following questions. Select a scribe and
presenter.
1. Why did this happen?
2. What could the AIC have done to prevent ?
3. What could the Manager have done to prevent it
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE OUTLINE (Cont’d):
VI. Critical Path Analysis & Gantt Charts
• VII. Resources
Your audit plan and horizon risk issues
Multiple activities often feed into other activities.
Gantt Charts: Some Key Points
Critical Path Analysis is an effective and powerful method of
assessing:

What tasks must be carried out?

Where can parallel activity can be performed?

The shortest time in which you can complete a project

Resources needed to execute a project

The sequence of activities, scheduling and timings

Task priorities
The most efficient way of shortening time on urgent projects
Gantt Charts: Some Key Points
Gantt charts are also useful for monitoring
a project's progress once it's underway.
See what should have been achieved by a
certain date
You can take action.
Gantt Charts: Some Key Points
AUDIT
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Simple PERT Chart
Program Evaluation Review Technique (PERT) chart for
a project with five milestones (10 through 50) and six
activities (A through F). The project has two critical
paths: activities B and C, or A, D, and F – giving a
minimum project time of 7 months with fast tracking.
Activity E is sub-critical, and has a float of 1 month.
Project Network Map (Critical Path)
A network map of a project, tracing the work from a
departure point to the final completion objective. An
activity is represented by a line or arrow. This line or
arrow connects two events. Each event is a specific point
in time, marking the beginning and/or end of an activity.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Gantt Charts
In Gantt charts, there are three main relationships
between sequential tasks:
Finish to Start (FS) – FS tasks can't start before a previous
(and related) task is finished. However, they can start later.
Start to Start (SS) – SS tasks can't start until a preceding
task starts. However, they can start later.
Finish to Finish (FF) – FF tasks can't end before a
preceding task ends. However, they can end later
.
A fourth type, Start to Finish (SF), is very rare.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Gantt Chart – Task List
Task
A. High level analysis
B. Selection of server hosting
C. Configuration of server
D. Detailed analysis of core modules
E. Detailed analysis of supporting modules
F. Development of core modules
G. Development of supporting modules
H. Quality assurance of core modules
I. Quality assurance of supporting modules
J. Initial client internal training
K. Development and QA of accounting
reporting
L. Development and QA of management
reporting
Length
1 week
1 day
2 weeks
2 weeks
2 weeks
3 weeks
3 weeks
1 week
1 week
1 day
Type*
S
S
S
S, P to B, C
S, P to F
S, P to E
S, P to H, J
S, P to G
S
S, P to G
Dependent on...
1 week
S
E
1 week
S
E
M. Development of MIS
1 week
S
L
N. Client internal user training
1 week
S
I, J, K, M
* P: Parallel, S: Sequential
A
B
A
D
D
E
F
G
C,H
THE SECRETS OF AUDIT PROJECT MANAGEMENT
PSA GANTT Task List
PLAN
PLAN
0
1
1
2
1
2
1
3
100%
100%
0
2
1
1
6
7
9
4
5
100%
80%
1,2
1,2,3
risks/control information
6End of Planning Meeting
7Perform Fieldwork
8Develop/Verify Findings
9Message Meeting with Report Outline
10Any additional FW/Message Adjustment
7
7
8
13
3
0
2
3
5
4
16
0
0
0
0
0
0
0
0
0
0
0
0
0
0%
0%
0%
0%
0%
0%
4
11Write
19
6
7
20
20
1
17
17
5
7
0
0
0
0
0
0
0
0
0
0
0
0
0%
0%
0%
0%
0%
0%
ACTIVITY
1Select Audit
2Plan
the Audit (review available information
for a high level risk assessment)
3Kick
Off/Engagement
4Detailed Planning (performing planning tasks
to identify risks/controls)
5Document
Draft Report, Brief, PPT
12Exit Conference
13Mocks
14Final Report, Brief, PPT
15AFC
16Close-out
ACTUAL ACTUAL PERCEN
T
STAR DURATION START DURATIO COMPLE PREDECESSORS
T
N
TE
1
4,5
5,6
7
2,4,6,8
all
9,10
4,5,8,9,11
4,5,8,9,11
11,12,13
4,5,8,9,11,13
all
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Simple Gantt Charts
… show the relationship
between the tasks. Tasks
will to be completed before
starting the next one, and
others can't end until
preceding ones have ended.
For example, if you're doing
an audit, you need to finish
the plan before you can
complete field work.
"harmonogram"
Exercise 6: Critical Path
The audit was requested by governmental entity’s police department and planned by a manager who had been with
the audit entity for 1month. He had initiated and completed the audit plan for the audit. He designed a survey and
identified police organizations to be surveyed to obtain information to determine the appropriate benchmark
criteria. The survey was issued and follow up, telephone calls were placed. The response was minimal and was
not sufficient to establish a criteria.
They continued to pursue the information for over 3 months before discussing it with the CAE. They were
instructed to cease and desist their activities. The CAE was concerned that there had been no communication
concerning the lack of cooperation, especially since the audit could not go forward even though the field work on
the condition was almost complete. On his instruction they were directed to find a different criteria to use. They
found the strategic planning steps promulgated by the Government Finance Officers’ Association (GFOA criteria).
They used these 15 steps as criteria which resulted in findings based on initial discussion with audited staff. It
appeared that most of the steps were not being followed. At the exit conference the auditee was upset over the
findings especially since they had not been informed of the auditor’s decision to use the GFOA’s criteria. They
were also upset that the audit had taken so long… in fact it had a birthday. They stated that almost all of the
criteria had been met. Upon auditor rework the auditors were able to determine, based on documentation
provided, that in fact most of the criteria had been generally met.
As a result of these issues, the audit office was over 8 months late in issuing the report, went over work time
budget by 50%, lost cooperation of the police department, and significantly affected its credibility.
Get together in your group to answer the following questions. Select a scribe and presenter.
1.
Why did this happen?
2.
What could the AIC have done to prevent ?
3.
What could the Manager have done to prevent it
THE SECRETS OF AUDIT PROJECT MANAGEMENT
VIII. MORE TOOLS AND
TECHNIQUES
THE SECRETS OF AUDIT PROJECT MANAGEMENT
COURSE OUTLINE (Cont’d):
More Tools & Techniques
• Planning Tools by Steps
• “Six Thinking Hats”
• Project Charter PID
• VII. Resources
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Planning Tools by Steps
THE SECRETS OF AUDIT PROJECT MANAGEMENT
More Common Mistakes
Failure:
 Assign the right
persons
 To obtain buy-in
 Too many audits
 To communicate
 To define scope
 To manage change
 Not micromanage





Optimistic timelines
Be flexible
To manage change
Not micromanage
Expect system to fix
issues
 Have metric to define
success
THE SECRETS OF AUDIT PROJECT MANAGEMENT
More Common Mistakes
Failure:
 Assign the right
persons
 To obtain buy-in
 Too many audits
 To communicate
 To define scope
 To manage change
 Not micromanage





Optimistic timelines
Be flexible
To manage change
Not micromanage
Expect system to fix
issues
 Have metric to define
success
THE SECRETS OF AUDIT PROJECT MANAGEMENT
6 THINKING HATS
THE SECRETS OF AUDIT PROJECT MANAGEMENT
The “Six Thinking Hats”.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
The “Six Thinking Hats” Benefits
(cont’d)
Maximize productive collaboration and minimize
counterproductive interaction/behavior
Consider issues, problems, decisions, and opportunities
systematically
Use Parallel Thinking as a group or team to generate more,
better ideas and solutions
Make meetings much shorter and more productive
Reduce conflict among team members or meeting
participants
Stimulate innovation by generating more and better ideas
quickly
THE SECRETS OF AUDIT PROJECT MANAGEMENT
The “Six Thinking Hats” Benefits
Create dynamic, results oriented meetings people want to
participate
Go beyond the obvious to discover effective alternate
solutions
Spot opportunities where others see only problems
Think clearly and objectively
View problems from new and unusual angles
Make thorough evaluations
See all sides of a situation
Keep egos and "turf protection" in check
Achieve significant and meaningful results in a less time
THE SECRETS OF AUDIT PROJECT MANAGEMENT
Exercise 7: The “Six Thinking Hats”
Maximize collaboration…
Consider issues…
Use Parallel Thinking …
Make meetings …
Reduce conflict …
Stimulate innovation …
Create dynamic people…
Go beyond the obvious…
Spot opportunities where …
Think clearly and objectively …
View problems …
Make thorough evaluations …
See all sides …
Keep egos in check …
Achieve results in a less time …
Meet with your group and match the attributes to the Hat.
Be prepared to present and discuss. Select a scribe and presenter.
THE SECRETS OF AUDIT PROJECT MANAGEMENT
The “Six Thinking Hats” Benefits
Maximize productive collaboration and minimize
counterproductive interaction/behavior
Consider issues, problems, decisions, and opportunities
systematically
Use Parallel Thinking as a group or team to generate more,
better ideas and solutions
Make meetings much shorter and more productive
Reduce conflict among team members or meeting
participants
Stimulate innovation by generating more and better ideas
quickly
Instructor