CCA CCA Construction Project Management and Controls 1 — Questions and Answers
Question 1: Which project management tool is most commonly used by construction auditors to evaluate schedule performance against planned milestones?
- Earned Value Management (EVM) (Correct answer)
- Critical Path Method (CPM) alone
- Resource Leveling Chart
- Gantt Chart without baselines
Correct answer: Earned Value Management (EVM)
Earned Value Management integrates scope, schedule, and cost to give auditors a quantified view of project performance against the baseline.
Question 2: What does a Schedule Performance Index (SPI) value of 0.85 indicate to a construction auditor?
- The project is 15% behind schedule (Correct answer)
- The project is 15% ahead of schedule
- The project is over budget by 15%
- The project has 15% contingency remaining
Correct answer: The project is 15% behind schedule
An SPI below 1.0 indicates the project is behind schedule, with 0.85 meaning only 85 cents of work completed for every dollar of work planned.
Question 3: A construction auditor reviewing internal controls would expect a project budget baseline to be formally established at which phase?
- After contract award and scope finalization (Correct answer)
- During contractor pre-qualification
- After the first change order is approved
- At project closeout
Correct answer: After contract award and scope finalization
The baseline budget must be locked after contract award and full scope definition so that any deviations can be objectively measured and audited.
Question 4: Which control document is the primary tool for tracking actual versus budgeted costs at the work package level on a construction project?
- Cost Control Report (CCR) (Correct answer)
- Contractor Daily Report
- Punch List
- Request for Information (RFI) log
Correct answer: Cost Control Report (CCR)
A Cost Control Report breaks down actual versus budgeted expenditures at the work package level, giving auditors granular visibility into cost performance.
Question 5: When auditing a construction project's management controls, which red flag most strongly suggests inadequate budget oversight?
- Frequent budget transfers between cost codes without documented justification (Correct answer)
- Monthly variance reports approved by the project manager
- Owner-approved contingency drawdowns with written rationale
- Weekly cost meetings documented with minutes
Correct answer: Frequent budget transfers between cost codes without documented justification
Undocumented budget transfers between cost codes mask true cost overruns and indicate weak controls or potential misappropriation.
Question 6: In construction project auditing, what is the primary purpose of reviewing a project's Work Breakdown Structure (WBS)?
- To ensure all project scope elements are accounted for and traceable to costs (Correct answer)
- To verify contractor personnel qualifications
- To confirm insurance certificates are current
- To approve subcontractor invoices
Correct answer: To ensure all project scope elements are accounted for and traceable to costs
The WBS maps every scope element to cost accounts, enabling auditors to trace every dollar spent back to an authorized scope item.
CCA CCA Construction Project Management and Controls 1
Which project management tool is most commonly used by construction auditors to evaluate schedule performance against planned milestones?