PRINCE2F Practice Test 16 — 15 Questions

Question 1

During the Controlling a Stage process, the Project Manager receives a Checkpoint Report. Who prepared this report?

Accepted Answer

Team Manager. In PRINCE2, the Checkpoint Report is a progress report prepared by the Team Manager on behalf of the team. It provides the Project Manager with a snapshot of the work completed, planned, and any issues or risks within a work package. The Project Manager uses this report during the Controlling a Stage process to monitor progress and make informed decisions.

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Project Manager

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Project Board

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Project Support

Question 2

What is the difference between a Highlight Report and an Exception Report?

Accepted Answer

Highlight Reports are periodic; Exception Reports are triggered by a tolerance deviation. The Highlight Report is a periodic report produced at intervals defined in the Communication Management Approach, while the Exception Report is an ad-hoc report triggered when a tolerance deviation is forecast or has occurred. The Highlight Report keeps the Project Board informed of progress within tolerances, whereas the Exception Report is used to escalate a deviation that cannot be brought back within tolerance without a decision from the Project Board.

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Highlight Reports are produced by the Team Manager; Exception Reports by the Project Manager

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Highlight Reports contain financial information; Exception Reports contain schedule information

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Highlight Reports are for the Project Board; Exception Reports are for the Project Manager

Question 3

Which PRINCE2 principle emphasizes that a project must remain viable throughout its lifecycle?

Accepted Answer

Continued business justification. The 'Continued business justification' principle requires that the Business Case is reviewed and updated regularly to ensure the project remains desirable, viable, and achievable.

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Manage by stages

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Learn from experience

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Tailor to suit the project environment

Question 4

In which process are Work Packages authorized and progress reviewed by the Project Manager?

Accepted Answer

Controlling a Stage. The Controlling a Stage process is where the Project Manager authorizes Work Packages to Team Managers and reviews their progress against the stage plan. This process ensures that work is executed, monitored, and controlled within the current stage, with the Project Manager managing day-to-day activities and escalating issues as needed.

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Directing a Project

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Managing a Stage Boundary

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Managing Product Delivery

Question 5

The Project Board has set a cost tolerance of +/- 10% for a stage. The Project Manager forecasts that the stage will be completed 15% under budget. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board. In PRINCE2, tolerances are two-sided thresholds. A forecast deviation of 15% under budget exceeds the ±10% cost tolerance, which is a forecast breach of a stage-level tolerance. The Project Manager must escalate by raising an Exception Report to the Project Board, who then decides whether to authorize an Exception Plan.

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Report the underrun in the next Highlight Report

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Reallocate the surplus to other activities without informing the Project Board

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Continue as planned since being under budget is beneficial

Question 6

In PRINCE2, who is responsible for the Business Case?

Accepted Answer

The Executive. The Executive is the single individual responsible for the Business Case in PRINCE2. They own the project's justification and ensure it remains viable throughout the project lifecycle, approving any changes that affect its viability. The Business Case is the Executive's primary accountability, as defined in the PRINCE2 manual.

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The Senior Supplier

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The Project Manager

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The Senior User

Question 7

Which TWO of the following statements about the Project Board are correct?

Accepted Answer

The Project Board meets only when decisions are required (exception-driven). The Project Board in PRINCE2 is designed to be an exception-driven body; it convenes only when decisions are required, such as approving stage plans or exception plans, rather than on a fixed schedule. This aligns with the PRINCE2 principle of management by exception, where the board delegates day-to-day management to the Project Manager and escalates only when tolerances are forecast to be exceeded.

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The Project Board meets on a regular basis (e.g., weekly)

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The Senior User chairs the Project Board

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The Project Board authorizes the Work Packages

Question 8

Which THREE of the following are activities performed during the Directing a Project process?

Accepted Answer

Authorise a Stage Plan or Exception Plan. In PRINCE2, the Directing a Project (DP) process is the responsibility of the Project Board and includes the activity 'Authorise initiation' (D), where the Board approves the Project Brief and the initiation stage can begin. It also includes 'Authorise the project' (E), where the Board approves the Project Initiation Documentation and commits to the project. A third DP activity is 'Authorise a Stage Plan or Exception Plan' (C), where the Board approves the next stage plan or an exception plan before work continues. Option A (Authorise a Work Package) is performed by the Project Manager in the Controlling a Stage process, and option B (Produce the Highlight Report) is also a Project Manager activity in Controlling a Stage, so neither belongs to Directing a Project.

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Authorise a Work Package

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Produce the Highlight Report

Question 9

In the Managing Product Delivery process, who produces Checkpoint Reports?

Accepted Answer

Team Manager. In PRINCE2, the Team Manager is responsible for producing Checkpoint Reports during the Managing Product Delivery process. These reports provide the Project Manager with progress updates on work packages at a frequency defined in the Work Package.

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Project Manager

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Project Assurance

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Project Board

Question 10

What is the definition of a project according to PRINCE2?

Accepted Answer

A temporary organization created to deliver one or more business products according to an agreed Business Case. PRINCE2 explicitly defines a project as 'a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.' This definition emphasizes the temporary nature, the focus on outputs (business products), and the governance through a Business Case, which justifies the project's initiation and continuation.

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A permanent structure to manage ongoing operations

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A temporary organization that delivers a defined output

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A permanent organization that produces repetitive outputs

Question 11

In PRINCE2, what is the purpose of the Risk Register?

Accepted Answer

To record all identified risks and their management. The Risk Register in PRINCE2 is the central repository for recording all identified risks (both threats and opportunities) and their ongoing management actions, including analysis, response planning, and status updates. It is a key management product that supports the continuous management of risk throughout the project lifecycle, ensuring that risks are formally captured, assessed, and controlled.

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To record lessons learned

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To record quality review results

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To record all issues raised during the project

Question 12

A Work Package has been authorized, but the Team Manager discovers that the work will require more effort than estimated. The tolerance for the Work Package is insufficient. What should the Team Manager do?

Accepted Answer

Inform the Project Manager and request guidance on how to proceed. When a Team Manager finds that a Work Package cannot be completed within its assigned tolerances, the correct action is to inform the Project Manager immediately and seek guidance. The Project Manager may then decide whether to adjust the Work Package, use stage-level tolerance, or escalate as an Exception. This preserves the PRINCE2 principle of management by exception and ensures the issue is handled at the appropriate level.

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Continue working and report the issue in the next Checkpoint Report

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Raise an Exception Report directly to the Project Board

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Revise the Work Package and continue

Question 13

In PRINCE2, what is the definition of quality?

Accepted Answer

Fit for purpose. In PRINCE2, quality is defined as 'the degree to which a set of inherent characteristics fulfills requirements' — in simpler terms, 'fit for purpose'. This means that quality is not about achieving the highest possible standard or zero defects, but about meeting the stated requirements and being suitable for the intended use. PRINCE2 emphasizes that quality must be defined in terms of the product's purpose and the user's needs, not an abstract ideal.

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Highest possible standard

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Zero defects

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Conformance to specification

Question 14

During the Managing Product Delivery process, the Team Manager delivers products to the Project Manager. What document authorizes the Team Manager to deliver the work?

Accepted Answer

Work Package. A Work Package is the document that authorizes the Team Manager to create one or more products. It contains details of the work to be done and constraints.

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Project Plan

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Stage Plan

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Product Description

Question 15

During the Controlling a Stage process, the Project Manager identifies a deviation that is expected to remain within the stage tolerance. What should the Project Manager do?

Accepted Answer

Take corrective action and continue. In PRINCE2, during the Controlling a Stage process, the Project Manager is responsible for monitoring work and taking corrective action if deviations occur. If the deviation is expected to remain within the stage tolerance, the Project Manager has the authority to take corrective action without escalating to the Project Board. The Project Board is only informed via Highlight Reports, but no exception is raised because the tolerance is not exceeded. Therefore, taking corrective action and continuing is the correct action.

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Inform the Project Board in the next Highlight Report

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Raise an Exception Report to the Project Board

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Escalate the issue to the Team Manager