QUESTIONS:

1. Draw the activity Network.
2. What are the connected paths and its path duration
3. What is the critical path
4. Calculate the slack time and free slack time for each activity
5. What is the probabilistic times estimates for each activity and the expected times task. Show in tabular format.
6. Compute the Audit Activity Variance
7. Calculate the probability of completing the project in less than a specified time.
8. What is the reduce cost per day per activity. Present in a matrix.

A PERT/CPM PROJECT: Auditing a Corporation When an accounting firm audits a corporation, the first phase of the audit involves obtaining knowledge of the business". This requires the activities in below. Assume the auditing project must be completed in 30 days. The maximum allowable reduction in duration, as well as the cost per day of such a reduction is included in the matrix below. Activity Description B C D E Determining Appraisal Identification Systems Verification terms of of of types of description of engagement auditability transactions systems risk and possible description errors F G Evaluation Design of of internal Audit Controls Approach A A D BE F 3 6 14 8 4 00 9 $100 $80 $60 $70 $30 $20 $50 Immediate Predecessors Normal Duration (days): Di Cost per day of Reducing Duration: Kill Maximum allowable reduction in duration (Minimum time) : di 3 4 5 N 4 4 4 0 2 9 6 0 4 5