CCA Construction Project Management and Controls 3

Question 1

The Estimate at Completion (EAC) formula that assumes future work will proceed at the current cost performance rate is:

Accepted Answer

EAC = BAC / CPI

Answer

EAC = AC + (BAC – EV)

Answer

EAC = AC + ETC

Answer

EAC = BAC – CV

Question 2

During a construction audit, an auditor verifies that project financial reports reconcile to the general ledger. This procedure addresses which assertion?

Accepted Answer

Accuracy and existence

Answer

Valuation

Answer

Completeness

Answer

Rights and obligations

Question 3

Which document should a construction auditor request to verify that subcontractors were competitively selected?

Accepted Answer

Bid tabulation sheets

Answer

Subcontractor insurance certificates

Answer

Subcontractor daily reports

Answer

Lien waiver forms

Question 4

In earned value analysis, a To-Complete Performance Index (TCPI) greater than 1.0 indicates:

Accepted Answer

Future work must be performed more efficiently than past work

Answer

The project will finish under budget

Answer

The project is currently under budget

Answer

No corrective action is needed

Question 5

Which condition would most concern a construction auditor reviewing project closeout controls?

Accepted Answer

Retention is released before final lien waivers are collected

Answer

All punch list items are documented

Answer

As-built drawings are submitted

Answer

Final payment is reconciled to the contract value

Question 6

A construction project auditor uses the 50/50 rule for measuring earned value. This means:

Accepted Answer

50% credit when work starts, 50% credit at completion

Answer

50% of budget is allocated to labor, 50% to materials

Answer

Work is assessed at 50% of planned value

Answer

Overhead is split equally between two cost centers