The objective of an audit/examination procedure for development and acquisition assessments is to enable the auditor/examiner to identify weaknesses or risks that could negatively impact an organization, to identify entities whose condition or performance requires special attention, and to subsequently effect corrective action.Auditors/examiners should not expect organizations to employ formal project management techniques in all development and acquisition assessment situations. Reviews should be risk focused and center on ensuring project management standards, controls, and procedures are present and commensurate with the characteristics and risks of the projects under review.

State the audit objective of the procedure, which can found in the FFIEC development and acquisition booklet at the end of chapter in Appendix A. Locate the page number(s) in the FFIEC development and acquisition booklet where the underlying topics for the procedures are covered and record the page number(s).

State and explain why this procedure is being performed, including a discussion of the risks/issues that the procedure is designed to address.If the procedures addresses such risks/issues as appropriate policies or internal controls established by an auditee, explain the significance of lack of compliance.Remember to review the pages in the FFIEC development and acquisition booklet before answering this question.

Procedure:

Evaluate the adequacy of development activities by assessing: (a) the adequacy of project request and approval procedures; (b) the adequacy of feasibility studies; (c) the adequacy of, and adherence to, standards and procedures relating to the: (i) design phase; (ii) development phase; (iii) testing phase; and (iv) implementation phase; (d) the adequacy of project change controls; (e) the appropriate inclusion of organizational personnel throughout the project's life cycle; (f) the effectiveness of project communication and reporting procedures; and (g) the accuracy, effectiveness, and control of project management tools.

There is no data, graph, link, or any other material. The short essay is depended on FFIEC development and acquisition booklet only