PRINCE2F Practice Test 4 — 25 Questions

Question 1

Which process covers the day-to-day management of a stage by the Project Manager?

Accepted Answer

Controlling a Stage. The 'Controlling a Stage' process is the day-to-day management of a stage by the Project Manager. It involves authorizing work packages, monitoring progress, dealing with issues, and reporting to the Project Board. This process ensures the stage stays on track and within tolerances.

Answer

Managing a Stage Boundary

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Directing a Project

Answer

Managing Product Delivery

Question 2

You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?

Accepted Answer

Request an extraordinary meeting of the project board to discuss the revised business case. PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.

Answer

Update the business case with the new figures and continue with the project

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Reduce project scope to bring costs back in line with the original business case

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Wait for the next scheduled board meeting to present the changes

Question 3

During a project, a team manager reports that a work package is taking longer than expected. The project manager needs to assess the impact on the project schedule. Which practice should be used to evaluate the effect and determine whether to escalate?

Accepted Answer

Progress. The Progress practice is used to monitor and compare actual achievements against planned performance, and to assess the impact of deviations. When a work package takes longer than expected, the project manager uses Progress to evaluate the effect on the schedule and decide whether to escalate to the project board. This aligns with PRINCE2's principle of managing by stages and using tolerances to control deviations.

Answer

Risk

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Plans

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Organizing

Question 4

Which process is used by the Project Board to oversee the entire project?

Accepted Answer

Directing a Project. The 'Directing a Project' process is the correct answer because it is the PRINCE2 process that covers the Project Board's responsibilities for overseeing the entire project from start to finish. It provides the strategic direction, authorizes key decisions (such as stage boundaries and project closure), and ensures the project remains viable and aligned with business objectives. This process runs from the initial authorization to the final project closure, making it the overarching governance mechanism.

Answer

Controlling a Stage

Answer

Managing Product Delivery

Answer

Starting Up a Project

Question 5

A project is experiencing many changes due to evolving requirements. Which document should the Project Manager use to track all requests for change?

Accepted Answer

Issue Register. The Issue Register is the PRINCE2 document specifically designed to capture, track, and manage all requests for change, including off-specifications, problems, and concerns. Since the project is experiencing many changes due to evolving requirements, the Project Manager must log each change request in the Issue Register to ensure proper impact analysis, decision-making, and audit trail. This aligns with the PRINCE2 practice of managing issues and changes through a controlled process.

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Risk Register

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Configuration Item Record

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Quality Register

Question 6

Which role is responsible for ensuring that project assurance is carried out independently of the Project Manager?

Accepted Answer

Project Board. The Project Board is responsible for ensuring that project assurance is carried out independently of the Project Manager. Project assurance provides the board with confidence that the project is being run correctly, and independence is essential so that assurance is not compromised by the Project Manager's own interests. The board appoints assurance roles and ensures they have the authority and access needed.

Answer

Project Manager

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Team Manager

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Project Support

Question 7

According to PRINCE2, who is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Project Manager. In PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project. This includes monitoring the project's viability against the Business Case, updating it with actual costs and benefits, and escalating any deviations to the Project Board. The Project Manager ensures the Business Case remains a living document that reflects the current justification for the project.

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Senior Supplier

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Senior User

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Project Board

Question 8

Which TWO of the following are elements of a Work Package?

Accepted Answer

The product description(s) to be delivered. In PRINCE2, a Work Package is the authorization from the Project Manager to the Team Manager to deliver one or more products, and it must contain the product description(s) of what is to be delivered (Option A), since these define the scope, quality criteria, and acceptance requirements the team must meet. It must also include the reporting requirements for the Work Package (Option C), specifying what progress information the Team Manager must provide, in what format, and at what frequency, so the Project Manager can maintain control. Option B (the Business Case) is a project-level document owned by the Executive and justifying the project's continued viability, not a component of a Work Package. Option D (the project's risk register) is a project-level log maintained by the Project Manager; Work Packages may reference relevant risks but the register itself is not an element of the Work Package. Option E (the composition of the project team) is a resourcing/organizational matter handled through team management and the project's organization structure, not a defined element of a Work Package.

Answer

The Business Case

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The project's risk register

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The composition of the project team

Question 9

Which report from the Team Manager is used by the Project Manager to review progress within a stage?

Accepted Answer

Checkpoint Report. The Checkpoint Report is the Team Manager's regular progress report to the Project Manager, produced at a frequency defined in the Work Package (often weekly or at agreed checkpoints). It summarizes progress, issues, and forecast against the Work Package, giving the Project Manager visibility within a stage. This is distinct from stage-level or project-board-level reports.

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Highlight Report

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End Stage Report

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Exception Report

Question 10

Which document describes the quality criteria and quality methods to be applied during the project?

Accepted Answer

Quality Management Approach. The Quality Management Approach describes the project's quality standards, quality criteria, quality methods (e.g., reviews, tests), roles and responsibilities for quality, and the tools and techniques to be used. It is the overarching document that defines how quality will be managed across the project, including the quality register and product descriptions.

Answer

Quality Register

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Product Description

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Project Plan

Question 11

A project manager is leading a project to implement a new customer relationship management (CRM) system. The project board has defined tolerances for cost and time, and the project manager is authorized to manage the project within these tolerances. During a stage, the project manager discovers that a key supplier has increased prices, which will cause the stage to exceed its cost tolerance. According to PRINCE2 principles, what should the project manager do?

Accepted Answer

Escalate the issue to the project board immediately.. Manage by exception empowers the project manager to run the project within agreed tolerances, but when a tolerance is forecast to be exceeded, the issue must be escalated to the project board. This ensures that the board can make an informed decision about how to proceed, whether by providing additional funds, changing scope, or stopping the project.

Answer

Adjust the project plan to absorb the cost increase within the stage.

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Ask the supplier to honor the original price to avoid exceeding tolerance.

Answer

Update the business case to reflect the increased costs and continue.

Question 12

Which TWO of the following statements correctly describe the relationship between the Project Manager and Project Assurance?

Accepted Answer

Project Assurance is independent of the Project Manager. PRINCE2 mandates that Project Assurance is independent of the Project Manager to ensure objective oversight. Option C is correct because Project Assurance's primary role is to provide an independent view of the project's health, checking compliance with standards and business justification.

Answer

Project Assurance reports to the Project Manager

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The Project Manager can assign Project Assurance tasks to themselves if resources are limited

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The Project Manager can delegate Project Assurance duties to a Team Manager

Question 13

A project manager is reviewing progress and identifies a product that does not meet its quality criteria. What should the project manager do?

Accepted Answer

Raise an Issue and decide on corrective action within delegated authority. When a product fails to meet its quality criteria, the project manager should raise an Issue and, within their delegated authority (tolerance), decide on corrective action. PRINCE2 emphasizes management by exception: the project manager handles issues within tolerance, and only escalates to the Project Board when tolerances would be exceeded. This keeps decision-making at the appropriate level.

Answer

Raise an Issue for the Project Board to decide

Answer

Update the product description to match the delivered product

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Accept the product as-is and update the quality register

Question 14

Which role chairs the Project Board?

Accepted Answer

Executive (SRO). The Executive (SRO) chairs the Project Board and is accountable for the project's success.

Answer

Project Manager

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Senior User

Answer

Senior Supplier

Question 15

A project is in its Initiating a Project process. The Project Manager has prepared the Project Initiation Documentation (PID). Which role is responsible for approving the PID?

Accepted Answer

Project Board. In PRINCE2, the Project Board is the ultimate decision-making body responsible for approving key project documentation, including the Project Initiation Documentation (PID). The Project Manager prepares the PID, but it must be formally approved by the Project Board to authorize the project to proceed to the next stage. This ensures that the business case, risks, and plans are accepted at the appropriate governance level.

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Project Manager

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Project Assurance

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Senior Responsible Owner

Question 16

During which process are the Benefits Management Approach and the Risk Management Approach first created?

Accepted Answer

Initiating a Project. The Benefits Management Approach and Risk Management Approach are both created during the Initiating a Project process, as part of the Project Initiation Documentation (PID). This process establishes the overall project strategies and baselines before the first stage begins, so the approaches that govern benefits realization and risk handling are defined here.

Answer

Directing a Project

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Managing a Stage Boundary

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Starting Up a Project

Question 17

During which process is the End Project Report produced?

Accepted Answer

Closing a Project. The End Project Report is produced during Closing a Project. It reviews the project's overall performance and confirms the project has met its objectives.

Answer

Directing a Project

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Managing a Stage Boundary

Answer

Initiating a Project

Question 18

Which TWO of the following are components of the Project Initiation Documentation (PID)?

Accepted Answer

The Business Case. The Business Case (C) is a core component of the Project Initiation Documentation (PID) in PRINCE2, as it establishes the justification for the project by documenting the reasons, benefits, costs, risks, and timescales, and it must be approved before the project proceeds. The Project Plan (D) is also part of the PID, providing the high-level plan that describes how and when the project's objectives will be achieved, including the project's products, activities, and resources. The Risk Register (A) is not part of the PID; it is a separate document that is created and maintained throughout the project to record identified risks and their responses. The Lessons Log (B) is likewise a separate document used to capture lessons learned, not a PID component. The Team Manager (E) is a project role, not a document, and therefore cannot be a component of the PID.

Answer

The Risk Register

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The Lessons Log

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The Team Manager

Question 19

Which of the following is a risk response for an opportunity?

Accepted Answer

Enhance. In PRINCE2, risk responses for opportunities (positive risks) include Enhance, Exploit, and Share. Enhance is the correct response because it involves proactively increasing the probability and/or impact of an opportunity to maximize its potential benefits. Transfer and Avoid are responses for threats (negative risks), while Fallback is a response for a threat when the primary response fails.

Answer

Transfer

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Avoid

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Fallback

Question 20

In PRINCE2, what is the primary difference between Project Assurance and a quality review?

Accepted Answer

Project Assurance ensures the project is on track; a quality review checks product quality.. Project Assurance and quality reviews serve distinct purposes in PRINCE2. Project Assurance is an independent oversight function that ensures the project remains viable, compliant, and on track against the business case and plans. A quality review, on the other hand, is a structured technique used to assess whether a specific product meets its defined quality criteria and is fit for purpose.

Answer

There is no difference; they are synonymous.

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Project Assurance is performed by the Project Manager; quality review is performed by the team.

Answer

Project Assurance is a process; quality review is a role.