Answer to Question #204712 in Accounting for kit

Question

1. Describe the difference between a process and a project. List three risks that are similar to and three risks that are unique from each other. W

2. What are the five phases of projects? List three operational audit steps for each of them.

Answer 1

$$Solution$$

1. A process can be said to be an ongoing operation of a process, or has a repetitive sequence of tasks which are known at the outset while a project has an objective that is to be accomplished i.e has a beginning and an end, though not well defined and the sequence of tasks is usually not repetitive.

Some of the risks which are similar include;

.Cost risk

.Schedule risk

.Technological risk

Project Risks include:

.Environmental risks

.Performance risks

Process Risks include

.Human error

.Mechanical failure

.process quality risk

2.Five phases of projects

i)Selection phase- Here the risk assessment is carried out to develop the audit plan

ii)Planning phase- The relevant information for the project to be executed is carried out

iii)Execution phase- Here the fieldwork like interviews is carried out by the internal audit staff

iv)Reporting phase- Audit findings, conclusions and recommendations are prompted here

v)Follow up-A subsequent audit will be conducted again