PRINCE2F Practice Test 5 — 25 Questions

Question 1

During which process does the Project Manager produce a Highlight Report?

Accepted Answer

Controlling a Stage. The Highlight Report is produced during the Controlling a Stage process to provide the Project Board with a summary of progress against the stage plan. The Project Manager creates this report at a frequency defined in the Communication Management Approach, typically to report on achievements, planned activities, and any issues or risks.

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Managing Product Delivery

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Managing a Stage Boundary

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Directing a Project

Question 2

Which report is produced by the Team Manager to inform the Project Manager about progress on a Work Package?

Accepted Answer

Checkpoint Report. In PRINCE2, the Team Manager produces a Checkpoint Report to inform the Project Manager about the status of a Work Package, including progress, issues, and next steps. This report is provided at frequency defined in the Work Package and feeds into the Highlight Report. The Checkpoint Report is specifically designed for progress monitoring within a stage.

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Highlight Report

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Exception Report

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End Stage Report

Question 3

In which process is the End Stage Report produced?

Accepted Answer

Managing a Stage Boundary. The End Stage Report is produced during the Managing a Stage Boundary process, which occurs at the end of each stage (except the final stage, where Closing a Project takes over). It summarises the stage's performance against its plan, including results, issues, and lessons, and is used by the Project Board to decide whether to approve the next stage.

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Closing a Project

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Directing a Project

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Controlling a Stage

Question 4

In a PRINCE2 project, the Project Manager has also been assigned the Project Assurance role. Which PRINCE2 principle is being violated?

Accepted Answer

Defined roles and responsibilities. The PRINCE2 principle 'Defined roles and responsibilities' requires that roles are clearly defined and that assurance roles are independent from management roles. Assigning the Project Manager also as Project Assurance violates this principle because Project Assurance must be independent of the Project Manager to provide objective oversight.

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Continued business justification

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Focus on products

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Manage by stages

Question 5

In PRINCE2, why is the Project Manager not allowed to also perform Project Assurance?

Accepted Answer

To ensure independence and avoid conflicts of interest. In PRINCE2, Project Assurance is a separate role from the Project Manager to ensure objective oversight of the project's adherence to standards, plans, and business justification. The Project Manager is responsible for day-to-day management and delivery, so allowing them to also perform Project Assurance would create a conflict of interest, as they would be reviewing their own work. This independence is critical for the integrity of the assurance function, which must provide unbiased checks on the Project Manager's decisions and outputs.

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Because Project Assurance is not a PRINCE2 role

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To reduce the number of roles in the project

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Because the Project Manager is too busy

Question 6

Which role is responsible for project assurance activities in a PRINCE2 project?

Accepted Answer

Project Assurance. Project Assurance is the correct answer because in PRINCE2, Project Assurance is a distinct role responsible for monitoring and reporting on the project's adherence to the management and technical standards, independent of the Project Manager. It ensures that the project remains aligned with the business case, quality requirements, and stakeholder expectations, acting as the 'eyes and ears' of the Project Board.

Answer

Project Manager

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Senior Supplier

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Team Manager

Question 7

What is the purpose of the Product Breakdown Structure (PBS)?

Accepted Answer

To identify the products to be produced and their relationships. The Product Breakdown Structure (PBS) is a hierarchical diagram that identifies all the products (both management and specialist) that the project must deliver, along with their relationships. It decomposes the final output into smaller, manageable components, ensuring nothing is missed. This directly supports the PRINCE2 principle of 'focus on products' by providing a complete product scope before planning activities or assigning resources.

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To assign responsibilities to team members

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To define quality criteria for each product

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To sequence activities in the Project Plan

Question 8

Which role can delegate change control decisions to a Change Authority?

Accepted Answer

Project Board. In PRINCE2, the Project Board is responsible for overall project governance and can delegate its change control authority to a Change Authority. This delegation is formalized in the Project Initiation Documentation (PID) and allows the Change Authority to approve or reject change requests within predefined limits, such as cost or time thresholds, without needing to escalate every decision back to the Board.

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Project Manager

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Executive

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Senior User

Question 9

You are the project manager for a software development project following PRINCE2. The project is in its second stage, which has a budget tolerance of 10% above the planned cost of $200,000. The project board is composed of the executive, senior user, and senior supplier. The team has been working on a critical feature, but a key supplier has announced a 15% price increase for their services, effective immediately. This increase will push the stage costs to $230,000, exceeding the tolerance. The project manager must decide the best course of action. Which option should the project manager take?

Accepted Answer

Raise an exception report to the project board, detailing the cost increase and seeking guidance.. PRINCE2 mandates that when a stage's forecast exceeds its tolerance (here, 10% above $200,000 = $220,000, and the new cost is $230,000), the project manager must raise an Exception Report to the project board. The board, comprising the executive, senior user, and senior supplier, then decides on corrective actions—such as approving additional budget, renegotiating scope, or stopping the project. The project manager cannot unilaterally approve the overrun or bypass the board.

Answer

Stop the project and close it prematurely.

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Negotiate with the supplier for a discount and continue the stage work without escalation.

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Approve the additional cost from the project's contingency budget without informing the board.

Question 10

In which process does the Project Manager produce an Exception Plan?

Accepted Answer

Managing a Stage Boundary. When a stage tolerance is forecast to be exceeded, the Project Manager raises an Exception Report and then, if directed by the Project Board, produces an Exception Plan during Managing a Stage Boundary.

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Initiating a Project

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Controlling a Stage

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Directing a Project

Question 11

A project manager notices that the project's product descriptions are being created after the products have already been developed. Which PRINCE2 principle is being ignored?

Accepted Answer

Focus on products. The 'Focus on Products' principle requires that a project defines and agrees on product descriptions (including quality criteria) before development begins, ensuring that all stakeholders have a shared understanding of what will be delivered. Creating product descriptions after development violates this principle because it undermines the definition of scope, quality expectations, and acceptance criteria upfront, leading to potential rework and misalignment.

Answer

Learn from experience

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Tailor to suit the project environment

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Manage by stages

Question 12

In PRINCE2, what is the difference between a Request for Change (RFC) and an Off-Specification (Off-spec)?

Accepted Answer

An RFC is a request to modify a product, while an Off-spec is a product that does not meet its specification. In PRINCE2, a Request for Change (RFC) is a formal proposal to modify a product, its specification, or the project's baseline, while an Off-Specification (Off-spec) is a product that has been completed but does not meet its agreed specification. The key distinction is that an RFC seeks to change what is required, whereas an Off-spec identifies a deviation from what was required.

Answer

An RFC is raised by the Project Board; an Off-spec is raised by the Project Manager

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There is no difference; they are interchangeable terms

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An RFC is always approved by the Change Authority; an Off-spec is always rejected

Question 13

A project is using the recommended risk management procedure. After identifying a risk, what is the next step?

Accepted Answer

Assess. The PRINCE2 risk management procedure steps are: Identify, Assess, Plan, Implement, Communicate. After identification, the next step is to assess the risk (probability and impact).

Answer

Plan

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Communicate

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Implement

Question 14

A project is using the 'reduce' response for a threat. What does this mean?

Accepted Answer

The probability and/or impact of the threat is lowered. Reduce means taking action to lower the probability or impact of a threat to an acceptable level.

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The threat is accepted and no action is taken

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The threat is avoided by changing the plan

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The threat is transferred to a third party

Question 15

Which principle ensures that a project remains viable?

Accepted Answer

Continued Business Justification. The Continued Business Justification principle ensures that a project remains viable by requiring ongoing validation of the business case throughout the project lifecycle. If the justification ceases to be valid (e.g., costs exceed benefits or strategic alignment is lost), the project should be stopped. This principle is the foundation for PRINCE2's focus on value for money and risk management.

Answer

Manage by Stages

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Learn from Experience

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Tailor to Suit the Project

Question 16

A project is in the Controlling a Stage process. The project manager receives a request from a team manager to change the design specification because of a technical difficulty. The change would not affect the stage plan or the business case. What should the project manager do first?

Accepted Answer

Log the issue in the Issue Register and assess the impact. According to PRINCE2, when a team manager raises a technical difficulty that could result in a change, the project manager must first log it as an issue in the Issue Register. Only after logging and assessing the impact can the project manager decide on the appropriate response. Since the change does not affect the stage plan or business case, the project manager can handle it within the stage without escalating to the project board.

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Update the Risk Register and create a risk response

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Escalate the issue to the project board for a decision

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Instruct the team manager to proceed with the change

Question 17

The Project Board is considering whether to authorize the next stage. Which document provides the information needed for this decision?

Accepted Answer

End Stage Report. The End Stage Report is produced at the end of each stage and summarizes performance against the stage plan, business case, and risks, giving the Project Board the information it needs to decide whether to authorize the next stage. It is the formal input to the 'Authorize a Stage' activity.

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Highlight Report

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Checkpoint Report

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Exception Report

Question 18

Which of the following is an output of the Directing a Project process?

Accepted Answer

Authorization to initiate a project. The Directing a Project process is used by the Project Board to make key decisions and exercise overall control. One of its key outputs is the 'Authorization to initiate a project', which formally allows the Project Manager to proceed from the Starting Up a Project process into the Initiation Stage. This authorization is documented in the form of the Project Initiation Documentation. Therefore, option B is correct.

Answer

Project Plan

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End Stage Report

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Work Package

Question 19

Which role manages the day-to-day execution of a Work Package?

Accepted Answer

Team Manager. The Team Manager is the role responsible for the day-to-day management of a Work Package within a PRINCE2 project. They report to the Project Manager and ensure that the work is completed according to the agreed tolerances, quality criteria, and schedule. This is defined in the PRINCE2 manual under the 'Organizing' theme, where the Team Manager is specifically tasked with coordinating the team's work and reporting progress.

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Project Support

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Senior User

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Project Manager

Question 20

Which of the following is NOT a role in the PRINCE2 project management team?

Accepted Answer

Project Sponsor. The PRINCE2 project management team structure includes the Project Board (Executive, Senior User, Senior Supplier), Project Manager, Team Manager, and optionally the Change Authority. The Project Sponsor is not a defined role in PRINCE2; instead, the Executive role fulfills the sponsorship responsibilities. Therefore, option A is correct as the role that does NOT exist in the PRINCE2 framework.

Answer

Change Authority

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Team Manager

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Project Manager