SRT510 Business Case Studies Auditing IT Investment Performance.
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Transcript of SRT510 Business Case Studies Auditing IT Investment Performance.
![Page 1: SRT510 Business Case Studies Auditing IT Investment Performance.](https://reader035.fdocuments.net/reader035/viewer/2022072116/56649e6a5503460f94b67a7c/html5/thumbnails/1.jpg)
SRT510 Business Case Studies
Auditing IT Investment Performance
![Page 2: SRT510 Business Case Studies Auditing IT Investment Performance.](https://reader035.fdocuments.net/reader035/viewer/2022072116/56649e6a5503460f94b67a7c/html5/thumbnails/2.jpg)
NPV Analysis Estimates
Provide the following for a project:Costs (cash outflows)Benefits (cash inflows)Timing of outflows and inflows
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Example
Intermec Inc (note—some numbers are fictitious)
Project PUltra secure wireless networkNPV $14.02M after 5 years at 15%; IRR 22%
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How do you measure accuracy of estimates? Outflows (costs)
Balance sheet; cash flow statementTypically quarterly
Inflows (benefits)Balance sheet; income statementTypically quarterly
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Example
Intermec Inc. (note—some numbers are fictitious)
Financial statementLarge differences in actual:expected!
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Audit Plan
Take yearly projections and divide into quarters ($ are not necessarily equal—think of differences between businesses; think seasonality)
Add expected values As real numbers come in, calculate
difference
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Adjustments
Part of your audit:How do you respond to differences between
expected and actual?What if expected targets are not being met?
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When do you plan for audit?
Part of Project ManagementPlan your audit (closing phase?)
Who? How? – what fields? What variance?...