CPD CPD Project Governance & Compliance 2 — Questions and Answers
Question 1: What is the role of an audit trail in project governance and compliance?
- It speeds up project execution
- It provides a chronological record of decisions and actions for accountability and review (Correct answer)
- It replaces the need for a project charter
- It eliminates the need for status reports
Correct answer: It provides a chronological record of decisions and actions for accountability and review
An audit trail chronologically records decisions and actions, supporting accountability, regulatory compliance, and post-project review.
Question 2: Which governance principle ensures that project decisions are made by individuals with appropriate authority and expertise?
- Transparency
- Delegation of authority (Correct answer)
- Balanced scorecard
- Risk tolerance
Correct answer: Delegation of authority
Delegation of authority ensures decisions are made at the correct organizational level by individuals with the requisite authority and competence.
Question 3: When managing a federally funded project in the US, which document governs allowable costs and administrative requirements?
- PMBOK Guide
- FAR (Federal Acquisition Regulation) (Correct answer)
- ISO 9001
- BABOK Guide
Correct answer: FAR (Federal Acquisition Regulation)
The Federal Acquisition Regulation (FAR) establishes uniform policies for acquisition of supplies and services by federal agencies, including allowable costs.
Question 4: A project governance review reveals a conflict of interest involving a key decision-maker. What is the BEST response?
- Allow the decision-maker to proceed if the project is critical
- Disclose the conflict, recuse the individual from related decisions, and document the action (Correct answer)
- Remove the individual from the project entirely
- Keep the conflict confidential to avoid disruption
Correct answer: Disclose the conflict, recuse the individual from related decisions, and document the action
Proper governance requires disclosing conflicts of interest, recusing affected parties from related decisions, and documenting all actions taken.
Question 5: Which type of project review assesses whether a project should continue, be redirected, or be terminated based on strategic alignment?
- Quality audit
- Stage gate review (Correct answer)
- Lessons learned session
- Risk workshop
Correct answer: Stage gate review
Stage gate reviews are formal checkpoints that assess project viability and strategic alignment before authorizing continuation to the next phase.
Question 6: In the US, Sarbanes-Oxley (SOX) compliance most directly affects which aspect of project management for public companies?
- Procurement negotiation tactics
- Internal controls, financial reporting accuracy, and executive accountability (Correct answer)
- Team building and morale activities
- Marketing and communications planning
Correct answer: Internal controls, financial reporting accuracy, and executive accountability
SOX requires public companies to maintain robust internal controls and accurate financial reporting, directly impacting project financial management and executive sign-offs.
CPD CPD Project Governance & Compliance 2
What is the role of an audit trail in project governance and compliance?