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Professor K discusses the importance of developing a Statement of Work for project management purposes, outlining work requirements, timelines, project-specific services, deliverables, and budgetary information. This document ensures clarity among all parties involved in a project, including what is and isn't included in a pen test. The Statement of Work is the final agreement before work begins and outlines the work to be performed, defining deliverables and responsibilities to the customer. The document includes sections on the scope of work, schedule, and budget.