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 = BAC / CPI assumes the cost performance index to date will continue for the remaining work, yielding a realistic forecast.

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

Reconciling project reports to the general ledger confirms that reported figures are accurate and represent actual recorded transactions.

Question 3

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

Accepted Answer

Bid tabulation sheets

Answer

Bid tabulation sheets record all bids received and the basis for selection, providing evidence of competitive procurement.

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

A TCPI above 1.0 means remaining work must be completed more cost-efficiently than the project has achieved so far to meet the budget.

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

Releasing retention before receiving final lien waivers exposes the owner to unpaid subcontractor claims and liens.

(CCA) Certified Construction Auditor Practice Test

(CCA) Certified Construction Auditor Practice Test

CCA Construction Project Management and Controls 3