File: ch12; Chapter 12:Project Auditing

Concept Check Questions (based on “Practice Quizzes”)

[By nature, all questions are coded as Difficulty: Easy and AACSB: Reflective Thinking]

Learning Objective 12.1 Discuss the necessity and value of a project audit.

The ancillary goals of projects are:

usually not clearly identified.
obvious to all team members.
clearly stated in the project charter.
hidden by company security systems.

Ans: a
Refer to Section12.1
Bloom’s: Knowledge

Problems associated with unstated project goals include which of the following:
They are clearly known to the project team.
Progress toward unstated goals cannot be measured.
Unstated goals will not satisfy customers.
People on the project know about them anyway.

Ans: b
Refer to Section 12.1
Bloom’s: Comprehension

Learning Objective 12.2 Identify the major elements covered in an audit.

The project audit is:

Not really very important.
Usually secret.
Performed by upper management.
A thorough examination of the management of a project.

Ans: d
Refer to Section 12.2
Bloom’s: Knowledge

The scope of a financial audit is:

The same as the Project Audit.
Based on the results of the Project Audit.
Of more limited scope than the Project Audit.
Designed to cover only cash and cash flow.

Ans: c
Refer to Section 12.2
Bloom’s: Knowledge
 Learning Objective12.3 Explain the life cycle of an audit.

The Project Audit has a life cycle that:

Is clearly defined, with six events.
Is the same for all organizations, with a defined purpose and scope.
Must meet legal requirements set by the International Auditors’ Assn.
Must be led by a Certified Audit Specialist (CAS).

Ans: a
Refer to Section 12.3
Bloom’s: Knowledge

The first step in a Project Audit is:

a. Establishment of the Audit Database.
b. Definition of Audit baseline data for comparison with current findings.
Comparison of Current State with Past State for financial data.
Project Audit Initiation with defined purpose, scope, and methodology.

Ans: d
Refer to Section 12.3
Bloom’s: Knowledge

Learning Objective 12.4 Discuss the importance of the proper team for an audit, access to
records, and project personnel.

7. Which of the following is highly recommended with respect to selection of audit team
members?
Select team from a pool of available auditors.
Select team from the Marketing Dept.
Select team from Accounting/Controller Dept.
Select team from a number of critical areas of organization.

Ans: d
Refer to Section 12.4
Bloom’s: Comprehension

8. Most of theinformation needed for the Project Audit should come from:
Easily accessible current project databases.
All areas of information relevant to the Project.
Former Employees and Customers
Previous audits’ databases.

Ans: b
Refer to Section 12.4
Bloom’s: Knowledge

Learning Objective 12.5 Describe how to measure data for an audit.

9. It is relatively easy to measure some audit data, such as:

Time required to complete individual project tasks.
Project expenses for each task.
Completion of project milestones.
Project’s contribution to overall organization profitability.

Ans: c
Response: Refer to Section12.5
Bloom’s: Comprehension

10. Required performance measurement metrics are:

Clearly defined in the PMBOK.
Defined by the organization’s clients.
Readily available for established organizations.
Difficult to determine in terms of cost and/or revenue generated by departments.

Ans: d
Response: Refer to Section 12.5
Bloom’s: Knowledge