Review project auditing and project termination in your textbook, and explain what is involved with project auditing and project termination

Project Audit and Termination

A project management audit refers to an independent and structured assessment of a project to ascertain the true status of the work done and whether it conformed to the budget constraints, schedule, and project statement of work. It involves examining decisions made by the project manager, procedures followed in decision-making, determining the expenditures and budget limits, and the degree of completion of the project (Kerzner, 2019). On the other hand, project termination refers to closing out a project because there is no longer any need to continue. This process encompasses closing agreements with suppliers, releasing all resources, transferring relevant responsibilities, and documenting lessons learned.

The Keystone XL project, whose objective was to construct an oil pipeline from Canada to Nebraska offers the best example of project audit and termination. When it became evident that the Biden administration had rescinded the company’s construction permit, the company management announced the termination of the project. The company announced in June 2021 that it would continue to work with regulators and other stakeholders to ensure a safe termination and exit (Davenport, 2021). This process would involve examination of past performance and revaluation of regulatory and environmental agreements.