PRINCE2F Practice Test 29 — 15 Questions

Question 1

What is the difference between Project Assurance and Project Support?

Accepted Answer

Project Assurance provides an independent view; Project Support provides administrative services. PRINCE2 clearly distinguishes Project Assurance as an independent, objective check on the project's adherence to management controls and standards, while Project Support provides administrative and clerical services such as planning tools, filing, and information management. This separation ensures that assurance remains unbiased and not influenced by the day-to-day support activities.

Answer

Project Assurance is only required for large projects; Project Support is always required

Answer

There is no difference; they are the same role

Answer

Project Assurance is performed by the Project Manager; Project Support is performed by the Team Manager

Question 2

During a stage, the Project Manager receives a Checkpoint Report from a Team Manager indicating that the team has implemented a workaround for an off-specification without prior approval. What should the Project Manager do?

Accepted Answer

Raise an Issue Report and assess the impact of the workaround. In PRINCE2, any off-specification (a product that does not meet its specification) must be treated as an issue and formally managed. The Team Manager implementing a workaround without approval is a deviation from the agreed plan and tolerances, so the Project Manager must raise an Issue Report to capture the problem, assess the impact on the project's business case, and decide on the appropriate action—which may include accepting the workaround, rejecting it, or escalating.

Answer

Accept the workaround as it has already been implemented

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Update the Configuration Item Record to reflect the change

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Instruct the Team Manager to reverse the workaround immediately

Question 3

In PRINCE2, who is responsible for ensuring that the project remains viable and for approving major changes to the project's scope?

Accepted Answer

Executive. The Executive (Senior Responsible Owner) is accountable for the project's business justification and for approving major changes.

Answer

Senior Supplier

Answer

Project Manager

Answer

Senior User

Question 4

Which document is the key output of the Initiating a Project process?

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the key output of Initiating a Project.

Answer

Project Plan

Answer

Project Brief

Answer

Business Case

Question 5

A project is forecast to exceed its cost tolerance. What should the Project Manager do first?

Accepted Answer

Issue an Exception Report to the Project Board. In PRINCE2, when a project is forecast to exceed a tolerance (in this case cost tolerance), the Project Manager must escalate the deviation to the Project Board by producing an Exception Report. The Project Board then decides whether to approve a change, request more information, or take corrective action. This is the defined 'manage by exception' principle — the Project Manager does not unilaterally approve additional budget or change the Business Case.

Answer

Update the Business Case to reflect the new cost

Answer

Close the project as it is no longer viable

Answer

Approve additional budget using contingency

Question 6

Why does PRINCE2 separate the Project Manager from Project Assurance?

Accepted Answer

To ensure that the Project Board receives independent and objective assurance. The separation ensures independent oversight. The Project Manager is responsible for day-to-day management, while Project Assurance provides an impartial view to the Project Board to avoid conflicts of interest.

Answer

To create a career path for team members

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To reduce the workload of the Project Manager

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To allow the Project Manager to focus on team management

Question 7

In PRINCE2, what is the difference between tailoring and embedding?

Accepted Answer

Tailoring adapts PRINCE2 to a specific project; embedding incorporates PRINCE2 into the organization's culture. Tailoring is adapting PRINCE2 to the project's specific context. Embedding is integrating PRINCE2 into the organization's management system.

Answer

Tailoring is done by the Project Board; embedding is done by the Project Manager

Answer

They are the same thing

Answer

Tailoring is for large projects; embedding is for small projects

Question 8

A project is in the Initiating a Project process. Which document is the key output of this process?

Accepted Answer

Project Initiation Documentation (PID). The Initiating a Project process produces the Project Initiation Documentation (PID), which is the key output that defines the project's scope, objectives, and approach. The PID consolidates information from the Project Brief and Business Case, providing a baseline for decision-making and governance throughout the project.

Answer

Stage Plan

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Project Brief

Answer

Business Case

Question 9

What is the key difference between Project Assurance and Project Support?

Accepted Answer

Project Assurance provides independent oversight on behalf of the Project Board; Project Support provides administrative services to the Project Manager. Project Assurance is an independent oversight function, performed on behalf of the Project Board, to ensure that the project is being conducted correctly and remains viable. Project Support, in contrast, is a set of administrative and advisory services provided to the Project Manager to help them manage the project effectively. This distinction is fundamental to PRINCE2's separation of 'doing' from 'checking'.

Answer

Project Assurance is a role performed by the Project Manager, whereas Project Support is performed by the team

Answer

Project Assurance focuses on quality, while Project Support focuses on risk management

Answer

Project Assurance is optional, while Project Support is mandatory

Question 10

Which THREE of the following are correct about the PRINCE2 progress practice?

Accepted Answer

Highlight Reports are produced by the Project Manager for the Project Board.. Highlight Reports are produced by the Project Manager for the Project Board to report progress and issues. Option D is correct: The Project Board uses management by exception, setting tolerances and only intervening when breaches occur. Option E is correct: Checkpoint Reports are produced by Team Managers for the Project Manager to report progress at the work package level. Option B is incorrect because the Project Board sets stage tolerances, not the Project Manager. Option C is incorrect because tolerances are set at both project and stage levels.

Answer

The Project Manager sets stage tolerances for the project.

Answer

Tolerances are only set at the project level, not at the stage level.

Question 11

A project manager is reviewing the business case and notices that the benefits are not clearly defined. Which document should be updated to address this issue?

Accepted Answer

Business Case. The Business Case is the PRINCE2 document that justifies the project on economic grounds, and it must contain clearly defined benefits to enable ongoing viability assessment. If benefits are not clearly defined, the Business Case itself is incomplete and must be updated to ensure the project remains justified and aligned with organizational objectives.

Answer

Benefits Management Approach

Answer

Project Plan

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Risk Register

Question 12

In PRINCE2, which role is responsible for ensuring that the business case is maintained and that the project remains viable?

Accepted Answer

Senior Responsible Owner (Executive). The Senior Responsible Owner (Executive) is the single person accountable for the business case and for ensuring that the project remains viable throughout its lifecycle. They own the business justification and have the authority to stop the project if it no longer meets the organization's objectives or if the costs outweigh the benefits.

Answer

Senior Supplier

Answer

Senior User

Answer

Project Manager

Question 13

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. In PRINCE2, when a forecast indicates that a stage-level tolerance (such as cost) will be exceeded, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because tolerances are delegated limits of authority; exceeding them means the Project Manager no longer has the authority to proceed without Board approval. The Exception Report presents the situation, options, and a recommendation, allowing the Board to decide whether to stop, change, or continue the project. Option C correctly reflects this mandatory escalation procedure.

Answer

Close the project immediately as the Business Case is no longer viable

Answer

Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

Answer

Increase the project budget to absorb the additional cost and continue with the current Stage Plan

Question 14

Which THREE of the following are responsibilities of the Project Board in the Directing a Project process?

Accepted Answer

Giving ad-hoc direction to the Project Manager. In PRINCE2, the Project Board is the directing authority, and in the Directing a Project process it provides ad-hoc direction to the Project Manager (option B) when issues, exceptions, or changes require a decision beyond the Project Manager's authority. It also authorizes the initiation of the project (option C) via the 'Authorize Initiation' activity, approving the Project Initiation Documentation before the project proceeds. Additionally, it authorizes the closure of the project (option D) through the 'Authorize Project Closure' activity, confirming that the project has delivered its products and can be closed. Option A is incorrect because producing Highlight Reports is the Project Manager's responsibility, not the Project Board's. Option E is incorrect because managing the day-to-day work of the project is delegated to the Project Manager, not performed by the Project Board.

Answer

Producing Highlight Reports

Answer

Managing day-to-day work of the project

Question 15

Which of the following is a characteristic of a project, as defined by PRINCE2?

Accepted Answer

It produces a unique product, service, or result. PRINCE2 defines a project as a temporary organization created for the purpose of delivering one or more business products according to an agreed Business Case. A defining characteristic is that it produces a unique product, service, or result, and it is finite in duration with defined start and end points. Option D captures this core PRINCE2 principle that projects are distinct from business as usual because they deliver something new and unique.

Answer

It is a permanent organization with ongoing operations

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It introduces no change to the organization

Answer

It is part of business as usual