Download presentation
Presentation is loading. Please wait.
Published byRachel Murphy Modified over 9 years ago
1
SRT510 Business Case Studies Auditing IT Investment Performance
2
NPV Analysis Estimates Provide the following for a project: Costs (cash outflows) Benefits (cash inflows) Timing of outflows and inflows
3
Example Intermec Inc (note—some numbers are fictitious) Project P Ultra secure wireless network NPV $14.02M after 5 years at 15%; IRR 22%
4
How do you measure accuracy of estimates? Outflows (costs) Balance sheet; cash flow statement Typically quarterly Inflows (benefits) Balance sheet; income statement Typically quarterly
5
Example Intermec Inc. (note—some numbers are fictitious) Financial statement Large differences in actual:expected!
6
Audit Plan Take yearly projections and divide into quarters ($ are not necessarily equal— think of differences between businesses; think seasonality) Add expected values As real numbers come in, calculate difference
7
Adjustments Part of your audit: How do you respond to differences between expected and actual? What if expected targets are not being met?
8
When do you plan for audit? Part of Project Management Plan your audit (closing phase?) Who? How? – what fields? What variance?...
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.