PRINCE2F People: organizations, teams, and leadership Practice Test 3 — 15 Questions

Question 1

A project is running over time by 5% against the stage tolerance of 10%. The Project Manager expects this trend to continue. What should the Project Manager do?

Accepted Answer

Continue and report the deviation in the next Highlight Report. The project is within the stage tolerance of 10% (currently at 5% over time), and the Project Manager expects the trend to continue but has not yet exceeded the tolerance. According to PRINCE2, the Project Manager should continue managing the work within the agreed tolerance and report the deviation in the next Highlight Report, as this is the standard mechanism for communicating progress and forecast deviations that are still within tolerance. Raising an Exception Report is only required when a deviation is forecast to exceed the stage tolerance, which is not the case here.

Answer

Raise an Exception Report immediately

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Ask the Project Board for more time

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Update the Business Case to reflect the delay

Question 2

During a project, the Project Board is informed that a major change to the project scope is required. Which role is best placed to assess the impact on the Business Case?

Accepted Answer

Project Assurance. Project Assurance provides independent assessment of project issues, including impact on the Business Case, to the Project Board.

Answer

Senior User

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Team Manager

Answer

Project Manager

Question 3

Which TWO of the following are differences between the Starting Up a Project (SU) and Initiating a Project (IP) processes?

Accepted Answer

SU produces the Project Brief; IP produces the Project Initiation Documentation. The Starting Up a Project (SU) process produces the Project Brief, which provides a high-level overview of the project's justification, scope, and approach. The Initiating a Project (IP) process then produces the Project Initiation Documentation (PID), which is a more detailed and comprehensive set of documents that forms the basis for managing the project. This distinction is a fundamental difference in the PRINCE2 methodology, where SU focuses on the initial concept and IP on detailed planning and controls.

Answer

SU is optional; IP is mandatory

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SU creates the Stage Plan for the first stage; IP creates the Project Plan

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SU includes the appointment of the Project Board; IP includes the appointment of the Project Manager

Question 4

During the Managing a Stage Boundary process, the Project Manager updates the business case. Who is accountable for approving the updated business case?

Accepted Answer

Project Board. In PRINCE2, the Project Board is collectively responsible for approving the business case and ensuring it remains viable. While the Executive is the individual member with ultimate accountability, the question asks who is accountable for approving the updated business case; the Project Board, as the decision-making body, holds this accountability. The Senior Responsible Owner (SRO) is not a PRINCE2 role; the Executive is the equivalent. Thus, the correct answer is the Project Board.

Answer

Senior User

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Senior Responsible Owner

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Project Manager

Question 5

Which TWO statements correctly describe the role of the Senior User in PRINCE2?

Accepted Answer

Specifies the user requirements and ensures the project delivers the expected benefits. The Senior User is responsible for specifying the user requirements and ensuring that the project delivers the expected benefits. This role represents the interests of the users and is accountable for defining the desired outcomes and confirming that the project's products meet those needs.

Answer

Provides the resources and expertise for the project's products

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Is accountable for the business case

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Chairs the Project Board meetings

Question 6

Who is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Executive. In PRINCE2, the Executive is the individual who is ultimately accountable for the project's business justification and ensuring that the project remains viable. The Executive is responsible for developing and maintaining the Business Case throughout the project lifecycle, including updating it at stage boundaries and confirming its continued viability before proceeding. The Project Manager is responsible for creating the Business Case initially and monitoring it, but the Executive retains accountability for its ongoing validity.

Answer

Project Manager

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Senior User

Answer

Project Support

Question 7

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. PRINCE2's Controlling a Stage process requires the Project Manager to escalate any forecast deviation beyond the agreed stage tolerance to the Project Board via an Exception Report. The Project Manager cannot proceed without the Board's direction, as the tolerance is a delegated authority limit set by the Board.

Answer

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

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

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

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 Project Initiation Documentation (PID) is the key output of the Initiating a Project process because it consolidates all essential information—such as the Business Case, project scope, risks, and controls—into a single baseline document that authorizes the project to proceed. PRINCE2 mandates that the PID is created during this process to provide a firm foundation for the project and to enable senior management to make an informed decision about project continuation.

Answer

Stage Plan

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Business Case

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Project Brief

Question 9

What is the purpose of the Managing a Stage Boundary process?

Accepted Answer

To enable the Project Board to review the stage just completed and authorize the next stage. The Managing a Stage Boundary process is designed to provide the Project Board with the information needed to review the current stage's performance and approve the next stage plan. It ensures that the project remains viable by assessing completed work against the stage plan and updating the business case before authorizing the next stage. This process is triggered at the end of each management stage (except the final one) and produces key outputs such as the End Stage Report and the next Stage Plan.

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To control the work of the current stage

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To close the project after a stage has been completed

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To plan the initiation stage

Question 10

What is the difference between a Request for Change and an Off-specification?

Accepted Answer

A Request for Change is a proposed change to a baselined product; an Off-specification is a product that does not meet its specification. In PRINCE2, a Request for Change (RFC) is a formal proposal to modify a baselined product, while an Off-specification (Off-spec) is a notification that a product does not meet its agreed specification. The key distinction is that an RFC addresses a change to a product that has already been approved, whereas an Off-spec identifies a failure to meet the original requirements. This aligns with PRINCE2's change control approach, where both are captured in the Issue Register but serve different purposes.

Answer

A Request for Change relates to a change in scope; an Off-specification relates to a change in quality

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There is no difference; they are synonyms

Answer

A Request for Change is raised by the Project Manager; an Off-specification is raised by the Team Manager

Question 11

Who chairs the Project Board?

Accepted Answer

Senior Responsible Owner (Executive). The Project Board is chaired by the Executive, also known as the Senior Responsible Owner (SRO). This role has overall accountability for the project's success, ensuring it delivers the required business justification and remains aligned with organizational strategy. The Executive chairs the board to provide leadership and make key decisions, not the Senior User, Senior Supplier, or Project Manager.

Answer

Senior User

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Senior Supplier

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Project Manager

Question 12

Which THREE of the following are true about Project Assurance in PRINCE2?

Accepted Answer

It is a mandatory role in PRINCE2. PRINCE2 mandates the Project Assurance role to ensure that the project remains aligned with its business case, quality standards, and governance requirements. This role is separate from the Project Manager and cannot be combined with it, as it provides an independent check on the project's ongoing viability and compliance.

Answer

It can be delegated to the Project Manager

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It is only performed at the end of each stage

Question 13

Which TWO of the following are responsibilities of the Project Manager?

Accepted Answer

Raise Exception Reports when tolerances are forecast to be exceeded. Option B is correct because in PRINCE2 the Project Manager must escalate to the Project Board via an Exception Report as soon as it is forecast that a stage or project tolerance will be exceeded, so the Board can decide on corrective action. Option C is correct because the Project Manager is accountable for day-to-day management of the project and must keep it within the tolerances (time, cost, scope, quality, risk, benefit) delegated by the Project Board. Option A is not a Project Manager responsibility in PRINCE2 — ensuring the Business Case remains viable is owned by the Executive (with the Senior User and Senior Supplier), while the Project Manager only provides input such as the Business Case in the PID. Option D is wrong because delivering Work Packages is the responsibility of the Team Manager (or the Project Manager only if there is no Team Manager). Option E is wrong because maintaining configuration item records is the responsibility of the Project Support/Configuration Librarian role, not the Project Manager.

Answer

Ensure the Business Case remains viable

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Deliver Work Packages

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Maintain the project's configuration item records

Question 14

What is the key difference between Project Assurance and a quality review?

Accepted Answer

Project Assurance provides continuous independent oversight, while a quality review is a specific event to examine a product. Project Assurance is a continuous, independent oversight function that ensures the project remains viable and compliant with standards throughout its lifecycle, while a quality review is a specific, time-boxed event focused on examining a product's fitness for purpose. In PRINCE2, Project Assurance is a role (often assigned to the Project Board or a separate person) that provides objective checks, whereas a quality review is a technique within the quality management approach used to verify that a product meets its quality criteria. This distinction is fundamental because it separates ongoing governance from discrete product verification activities.

Answer

Project Assurance focuses on the Business Case, while a quality review focuses on the Project Plan

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Project Assurance is a role, while a quality review is a process in Managing a Stage Boundary

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Project Assurance is performed by the Project Manager, while a quality review is performed by the Project Board

Question 15

What is the difference between a Request for Change (RFC) and an Off-Specification (Off-Spec)?

Accepted Answer

An RFC proposes a change to an agreed baseline; an Off-Spec identifies that a product does not meet its specification. An RFC proposes a modification to an agreed baseline; an Off-Spec is a deviation from what was specified—something that should be there is missing or incorrect. Both are issues that may require a change control decision.

Answer

An RFC affects the project scope; an Off-Spec affects the project schedule

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An RFC is handled via the issue register; an Off-Spec is handled via the quality register

Answer

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