CCA Cheat Sheet 2026

The 30 highest-yield CCA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which document serves as the primary baseline for measuring construction project performance against cost, schedule, and scope? → Performance measurement baseline (PMB)
2. What is the first step in the construction audit process? → Audit planning
3. In construction contract auditing, a 'pencil copy' of a pay application refers to: → A preliminary draft submitted for owner/architect review before formal submission
4. Which contract type places the most financial risk on the contractor? → Fixed-price contract
5. When reviewing construction project schedules, an auditor should be alert to schedule compression techniques that may increase which project risk? → Quality defects and rework costs
6. In construction auditing, 'retainage' refers to: → A portion of each progress payment withheld by the owner until project completion
7. A construction project auditor uses the 50/50 rule for measuring earned value. This means: → 50% credit when work starts, 50% credit at completion
8. Which technique involves auditors selecting and confirming a random sample of material deliveries directly with suppliers to detect fictitious charges? → Accounts payable confirmation
9. Which of the following best describes 'substantive testing' in a construction audit? → Directly testing account balances and transaction details for completeness and accuracy
10. An 'overbilled' condition on a construction WIP schedule indicates that: → The contractor has billed more than the value of work earned based on completion
11. In competitive sealed bidding, a 'responsive bid' is one that: → Conforms materially to all requirements of the solicitation document
12. A construction auditor reviewing labor records should be alert to employees consistently recording hours just below overtime thresholds, which may indicate: → Manipulation of records to avoid overtime reporting requirements or scrutiny
13. Concurrent delay in construction contracting refers to: → Overlapping delays caused by both the owner and the contractor occurring at the same time
14. What are direct costs in a construction project? → Project-specific materials and labor
15. Which clause in a contract helps manage risk by addressing unexpected delays? → Force majeure clause
16. A construction auditor verifying Davis-Bacon compliance should review: → Certified payroll records (WH-347) for each worker classification
17. 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)
18. How are retainage amounts typically treated in construction accounting? → Recorded as a liability until paid
19. During a construction audit, an auditor verifies that project financial reports reconcile to the general ledger. This procedure addresses which assertion? → Accuracy and existence
20. What is the auditor's primary concern when reviewing a construction project's contingency drawdown process? → Contingency is used only for unforeseen costs, not known scope additions
21. Under the percentage-of-completion method in construction accounting, revenue is recognized based on: → The proportion of contract costs incurred to date relative to total estimated costs
22. Which condition in a subcontract most effectively protects the owner's right to audit subcontractor records? → An explicit audit rights clause granting the owner access to subcontractor cost records
23. Which red flag suggests that a contractor may be using change orders to recover costs that should have been included in the original bid? → A high volume of change orders for items that were reasonably foreseeable at bid time
24. Which change order pricing method is most auditable and transparent for a cost-plus construction contract? → Force account (time and material) with daily records signed by both parties
25. Which element of an effective construction fraud prevention program includes training field staff to recognize and report suspicious activity? → Anti-fraud awareness and ethics training with a confidential hotline
26. Which type of evidence provides the highest audit reliability? → External documentation
27. A CCA auditor finds that change orders consistently increase scope but the project schedule was never formally updated. What risk does this create? → Inability to accurately assess contractor time extension entitlements or delay damages
28. A construction auditor reviewing payroll records finds that 15 workers have the same home address listed on their W-4 forms. This is most consistent with: → Ghost employee payroll fraud using a single address to collect multiple paychecks
29. In construction auditing, 'three-way matching' in the procurement cycle refers to matching which three documents? → Purchase order, receiving report, and vendor invoice
30. What does a Guaranteed Maximum Price (GMP) contract include? → Cost plus with a price cap