CCA Construction Project Management and Controls

Question 1

Which document serves as the primary baseline for measuring construction project performance against cost, schedule, and scope?

Accepted Answer

Performance measurement baseline (PMB)

Answer

The performance measurement baseline integrates scope, schedule, and cost baselines and is used to measure and manage project performance.

Question 2

Earned Value Management (EVM) uses which formula to calculate the Cost Variance (CV) on a construction project?

Accepted Answer

CV = EV – AC

Answer

Cost Variance equals Earned Value minus Actual Cost; a negative result indicates the project is over budget.

Question 3

A construction auditor reviewing project controls should verify that the Schedule Performance Index (SPI) is calculated as:

Accepted Answer

SPI = EV / PV

Answer

SPI equals Earned Value divided by Planned Value; an SPI below 1.0 indicates the project is behind schedule.

Question 4

Which internal control best ensures that construction project budget changes are formally authorized before implementation?

Accepted Answer

Integrated change control process

Answer

An integrated change control process requires formal review and approval of all budget modifications before they are executed.

Question 5

A cost-to-complete (CTC) estimate that is consistently lower than actual expenditures indicates which audit risk?

Accepted Answer

Underreporting of project costs

Answer

Persistently optimistic CTC estimates may signal that costs are being deliberately underreported to conceal budget overruns.

(CCA) Certified Construction Auditor Practice Test