PRINCE2F PRINCE2 Processes Practice Test 24 — 15 Questions

Question 1

Who is responsible for authorising the start of a project in PRINCE2?

Accepted Answer

The Project Board. In PRINCE2, the Project Board is responsible for authorising the start of a project. This occurs at the end of the Initiating a Project process, when the Project Board reviews the Project Initiation Documentation and gives approval to proceed with the project. The Project Board provides overall direction and control, ensuring the project aligns with business, user, and supplier interests.

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The Senior Supplier

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The Project Manager

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The Senior User

Question 2

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

Accepted Answer

Controlling a Stage. The Highlight Report is a progress report produced by the Project Manager for the Project Board during the Controlling a Stage process. It is created at regular intervals (typically monthly or as defined in the Communication Management Strategy) to summarize stage progress, status, and any issues or risks. This is a core activity within Controlling a Stage, where the Project Manager monitors and reports on stage performance.

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Managing a Stage Boundary

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Starting Up a Project

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Managing Product Delivery

Question 3

The Project Manager has identified an issue that could cause a delay in the current stage. The issue cannot be resolved within the stage's tolerance. What should the Project Manager do?

Accepted Answer

Raise an Exception Report and seek direction from the Project Board. When an issue is forecast to exceed stage-level tolerance, PRINCE2 requires the Project Manager to raise an Exception Report and escalate to the Project Board, because tolerances are the delegated authority limits. The Board then decides whether to approve an Exception Plan, change the project, or stop it. This preserves the principle of Management by Exception.

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Close the project and produce an End Project Report

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Update the Stage Plan to accommodate the delay and inform the Project Board

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Record the issue in the Daily Log and continue with the plan

Question 4

Which process includes the activity 'Assembling the Project Initiation Documentation'?

Accepted Answer

Initiating a Project. The activity 'Assembling the Project Initiation Documentation' is part of the 'Initiating a Project' process. This process is responsible for creating the PID, which includes the Business Case, Project Plan, and other key documents that form the foundation for project governance. It occurs after the project has been authorized and before the first management stage begins.

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Directing a Project

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Managing a Stage Boundary

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Starting Up a Project

Question 5

Which process is responsible for authorising the initiation of a project?

Accepted Answer

Directing a Project. The Directing a Project process is responsible for authorizing the initiation of a project. It is performed by the Project Board, which makes key decisions including authorizing the project initiation, stage boundaries, and project closure. The Project Board authorizes the Project Manager to proceed with Initiating a Project.

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Starting Up a Project

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Controlling a Stage

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Initiating a Project

Question 6

What is the difference between a Checkpoint Report and a Highlight Report in PRINCE2?

Accepted Answer

Checkpoint Reports are produced by the Team Manager for the Project Manager; Highlight Reports are produced by the Project Manager for the Project Board. Checkpoint Reports are produced by the Team Manager and provided to the Project Manager at a frequency defined in the Work Package, covering progress, issues, and next steps for that work package. Highlight Reports are produced by the Project Manager for the Project Board at a frequency defined in the Communication Management Strategy, summarizing stage progress, status, and any exceptions. This distinction in producer and audience is the core difference.

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Checkpoint Reports are produced by the Project Board; Highlight Reports are produced by the Project Manager

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Checkpoint Reports contain only quality information; Highlight Reports contain only progress information

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Checkpoint Reports are produced weekly; Highlight Reports are produced monthly

Question 7

During the Controlling a Stage process, who is responsible for producing Checkpoint Reports?

Accepted Answer

Team Manager. Checkpoint Reports are produced by the Team Manager and sent to the Project Manager to inform about progress within a Work Package.

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Project Manager

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Project Board

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Project Support

Question 8

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

Accepted Answer

Managing a Stage Boundary. The Exception Plan is prepared by the Project Manager in the Managing a Stage Boundary process when a stage is forecast to exceed its tolerances. This process allows the Project Manager to present options to the Project Board, including an Exception Plan to replace the current stage plan, ensuring continued control within agreed tolerances.

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Initiating a Project

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Directing a Project

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Controlling a Stage

Question 9

What is the key difference 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 (PID). The Starting Up a Project (SU) process produces the Project Brief, which outlines the project's scope and feasibility, while the Initiating a Project (IP) process produces the Project Initiation Documentation (PID), which provides a detailed plan and baseline for execution. This distinction is fundamental in PRINCE2 as SU focuses on pre-project preparation and IP on detailed planning and governance.

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SU is performed by the Project Board; IP is performed by the Project Manager

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SU is optional; IP is mandatory

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SU includes the creation of the Business Case; IP does not

Question 10

A project is forecast to exceed its stage cost tolerance. What is the Project Manager's first action?

Accepted Answer

Raise an Exception Report to the Project Board. According to PRINCE2, when a project manager forecasts that stage costs will exceed the agreed stage tolerance, the first action is to raise an Exception Report to the Project Board. This is because the project manager must escalate the deviation immediately, as they do not have authority to exceed tolerance without board approval. The Exception Report informs the board of the situation and options, allowing them to decide on corrective action.

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Continue the stage and report the overrun in the End Stage Report

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Request a change to the project budget from the Senior User

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Proceed with the next stage early to save time

Question 11

Which process is responsible for ensuring that the project does not proceed until the Project Board has authorized the initiation?

Accepted Answer

Directing a Project. Directing a Project is the process owned by the Project Board that authorizes the project to proceed through each stage boundary, including authorizing initiation. The Project Board's 'authorize initiation' decision is made within Directing a Project, which then triggers Initiating a Project to begin.

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Controlling a Stage

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Initiating a Project

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Starting Up a Project

Question 12

During the Closing a Project process, what is the purpose of the End Project Report?

Accepted Answer

To summarise project performance and lessons learned. The End Project Report is a PRINCE2 management product created during the Closing a Project process. Its core purpose is to provide the Project Board with a summary of the project's overall performance against its baseline (scope, time, cost, quality, benefits) and to capture lessons learned for future projects. It also confirms the project's final status and supports the Project Board's decision to authorize project closure. Option D accurately captures this dual role of performance summary and lessons documentation.

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To obtain approval for the next stage

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To hand over products to the customer

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To update the Business Case

Question 13

In which process does the Project Board decide whether to authorise an Exception Plan?

Accepted Answer

Directing a Project. The Project Board decides whether to authorize an Exception Plan during the Directing a Project process. This process covers the Project Board's decision-making responsibilities, including reviewing and approving exception plans when a stage is forecast to exceed its tolerances. The board either approves the exception plan, allowing the project to continue, or requests alternatives.

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Starting Up a Project

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Managing a Stage Boundary

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Controlling a Stage

Question 14

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

Accepted Answer

The Team Manager. The Checkpoint Report is produced by the Team Manager during the Managing Product Delivery process. It provides the Project Manager with regular updates on the progress of a Work Package. The Team Manager is responsible for executing the Work Package and reporting progress via Checkpoint Reports.

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The Project Manager

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The Project Board

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The Senior User

Question 15

Which process is triggered when the Project Manager needs to escalate an exception to the Project Board?

Accepted Answer

Controlling a Stage. Controlling a Stage is the process where the Project Manager monitors work, handles issues, and escalates exceptions to the Project Board when tolerances are forecast to be exceeded. Escalating an exception is a core activity within Controlling a Stage, which triggers the Project Board via the 'Directing a Project' process through an Exception Report. The Project Manager owns this escalation activity within the Controlling a Stage process.

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Managing a Stage Boundary

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Directing a Project

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Managing Product Delivery