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Auditing Project Management Practices

plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance
that objectives and goals will be achieved. Also see Internal Control and System of Internal Controls.

Critical Success Factor (CSF) — Activities identified that are used by management to determine if a
project has met customer needs.

Portfolio — The collection of operations, sub-portfolios, programs, and projects managed as a group
aligned to a strategic objective within an organization. Portfolios may include a number of
programs.

Program — The collection of operations, sub-portfolios, programs, and projects managed as a group
aligned to a strategic objective within an organization. Portfolios may include a number of
programs.

Project — A finite organization engagement to provide something of value to the recipient.

Project Governance — The overlap between projects and corporate governance, the governance of
project management at the entity level.

Project Management — The discipline of organizing and managing resources (e.g. people and
budget) so the project is completed within defined scope, quality, time, and cost constraints.

Project Management Methodologies — Broad collections of integrated policies, standards,
methodologies, life cycles, procedures, tools, techniques, stakeholders, and organizations that are
used to guide the planning and execution of a project.

Return on Investment — The expected value or return to be derived from a project or venture.

Risk — The possibility of an event occurring that will have an impact on the achievement of
objectives. Risk is measured in terms of impact and likelihood.

Understanding Project Management

Following established project management methodologies is critical for successful completion of
any significant work activity involving two or more people.

Project management is commonly thought of as the execution of the process, planning, knowledge,
skills, tools, and techniques executed by the project management office (PMO) or
department/divisional project managers, to successfully complete a given project assignment based
on its unique goals and objectives.

Project Management Practices

Good practices for managing a project include:

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