PRINCE2-PRACTITIONER Practice Exam 3 — 20 Questions

Question 1

A Project Manager is executing the Managing a Stage Boundary process. Halfway through compiling the End Stage Report, a major external market shift invalidates a key assumption in the Business Case. What should the Project Manager do?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Include the impact in the End Stage Report and recommend an Exception Plan or project closure. The Project Manager must raise an Issue (or reflect it in the End Stage Report and escalate immediately) because an invalid assumption threatening viability requires Project Board intervention via an Exception Report or stage boundary adjustment.

Answer

Ignore the shift, as the End Stage Report only reflects past stage performance

Answer

Stop the current stage immediately without consulting the Project Board

Answer

Immediately rewrite the Business Case and submit it to Corporate

Question 2

Which PRINCE2 process runs from the initial pre-project phase until the project is successfully initiated or aborted?

Accepted Answer

Starting up a Project. Starting up a Project is the pre-project process that runs until the Project Board decides whether to authorize initiation.

Answer

Initiating a Project

Answer

Controlling a Stage

Answer

Directing a Project

Question 3

During the Initiating a Project process, the Project Manager is refining the Business Case. What key financial metric is typically evaluated to ensure the project represents value for money?

Accepted Answer

Return on Investment (ROI) or Net Present Value (NPV). During IP, financial metrics such as Return on Investment (ROI), Net Present Value (NPV), or payback period are refined in the Business Case.

Answer

Daily checkpoint report frequency

Answer

Team member daily hourly wages

Answer

Number of open risks in the Risk Register

Question 4

A PRINCE2 project is nearing its final stage. The Project Manager discovers that due to cumulative minor scope creep, the final product will fail to deliver one of the minor non-mandatory benefits listed in the Benefits Management Approach. The Executive agrees that the project can still close successfully. How should this be handled in the End Project Report?

Accepted Answer

Document the deviation and the status of benefit realization in the End Project Report for review by corporate management.. The End Project Report must review project performance against the original baseline, including any unachieved benefits or deviations, and note them for operational follow-up.

Answer

Reopen the Initiating a Project process to rewrite the Business Case.

Answer

Reject the project closure until the missing benefit is fully delivered by the project team.

Answer

Omit any mention of the unachieved benefit to ensure the report reflects 100% success.

Question 5

A project is in the Closing a Project (CP) process. The Project Board is evaluating whether to authorize closure. Which of the following conditions must be met for the Project Board to authorize project closure?

Accepted Answer

Project objectives have been achieved, products handed over, and follow-on action recommendations documented.. To authorize project closure, the Project Board must ensure that project objectives as defined in the PID/Project Product Description have been met, handover is complete, and follow-on actions are documented.

Answer

The Project Manager has received a performance bonus from the Senior Supplier.

Answer

All risks in the risk log have been completely eliminated with zero residual risk.

Answer

All benefits have been fully realized and measured in the operational environment.

Question 6

A Project Manager is implementing Managing Product Delivery. A Team Manager discovers that a specialist product cannot be delivered within the agreed Work Package cost tolerance. What should the Team Manager do?

Accepted Answer

Submit an Exception Report to the Project Manager. When a Work Package forecast exceeds its tolerance, the Team Manager must immediately raise an Exception Report to the Project Manager.

Answer

Escalate directly to the Project Board

Answer

Absorb the cost by cutting quality criteria without telling anyone

Answer

Pause the whole project until funds are secured

Question 7

During the Managing Product Delivery process, a Team Manager has completed a specialist product. Before handing it over to the Project Manager, what quality check must the product pass according to PRINCE2?

Accepted Answer

Verification against its Product Description quality criteria. Products must be checked against their Product Description quality criteria and signed off by the authority defined in the Product Description.

Answer

Approval from Corporate, Program Management or the Customer

Answer

formal review by Project Assurance

Answer

Authorization of the next Stage Plan by the Project Board

Question 8

A project is currently executing the Controlling a Stage (CS) process. The Project Manager notices that cumulative actual costs are tracking significantly below budget while progress is on schedule. What should the Project Manager do?

Accepted Answer

Report the variance in the next Highlight Report and assess if it impacts stage tolerances or forecasts.. Under CS, unexpected variances (including underspend) should be logged as issues or risks and reported to the Project Board via Highlight Reports so the financial forecast can be adjusted if needed.

Answer

Automatically initiate the Closing a Project process early.

Answer

Secretly reallocate the surplus funds to personal bonuses without informing anyone.

Answer

Ignore the underspend since being under budget never requires management attention.

Question 9

During the Directing a Project process, the Project Board is evaluating whether to authorize the next stage. A minor tolerance deviation occurred in the current stage, but it was successfully managed. Where should the Project Board check to confirm that the business case remains viable despite this deviation?

Accepted Answer

Updated Business Case. The updated Business Case is reviewed by the Project Board during Managing a Stage Boundary and Directing a Project to ensure the project remains viable.

Answer

End Stage Report

Answer

Daily Log

Answer

Project Brief

Question 10

A Project Manager is managing a stage using the Controlling a Stage process. A Team Manager reports that a Work Package will complete ahead of schedule and under budget. How should the Project Manager handle this positive variance?

Accepted Answer

Capture the variance in a Highlight Report and review stage-level impact. Positive variances (gains in time or cost) within a Work Package belong to the stage and are managed via the stage tolerances. The Project Manager reviews how to utilize this gain within the stage or reports it in the Highlight Report.

Answer

Automatically extend the project deadline by the saved amount

Answer

Close the entire project immediately

Answer

Immediately return the saved money to corporate treasury without informing anyone

Question 11

A project is nearing the end of its current stage. The Project Manager initiates the Managing a Stage Boundary process. What is the primary reason for performing this process rather than continuing straight into the next delivery stage?

Accepted Answer

To allow the Project Board to review stage performance, assess continued business justification, and authorize the next stage plan. Managing a Stage Boundary gives the Project Board a control point to review stage performance, update the business case, and authorize the next stage.

Answer

To allow the Project Manager to take an extended leave while the Board reviews the project

Answer

To hand over day-to-day management to the Team Managers

Answer

To rewrite the entire Project Initiation Documentation from scratch

Question 12

A project is undergoing the Closing a Project process. The Project Board requests confirmation that all project benefits have been fully realized before giving final approval to close. According to PRINCE2, why is this request problematic at this exact moment?

Accepted Answer

Benefits realization reviews occur post-project and cannot be completed during the Closing a Project process.. Many project benefits materialize long after the project products are handed over and the project is closed; therefore, benefit realization cannot be fully proven at project closure.

Answer

Benefits are managed exclusively by Team Managers during Managing Product Delivery.

Answer

The Project Board has no authority to review benefits.

Answer

The Project Manager is prohibited from measuring benefits.

Question 13

A project is developing a new software system. The Project Manager discovers that one of the operational benefits listed in the Business Case will actually occur 12 months *after* the project has officially closed. How should this be handled under PRINCE2 7?

Accepted Answer

Ensure post-project benefit reviews are scheduled and handed over to operational management in the Benefits Management Approach.. Post-project benefit realization activities must be assigned ownership and tracked through the corporate benefits review mechanisms, as accountability often extends beyond project closure.

Answer

Extend the project lifecycle by 12 months to allow the Project Manager to track the benefit.

Answer

Delete the benefit from the Benefits Management Approach because project closure terminates all benefit tracking.

Answer

Transfer accountability for the Business Case to the Senior Supplier once the software is deployed.

Question 14

A project is experiencing severe difficulties in the current delivery stage. The Project Manager determines that stage tolerances will be exceeded. Which TWO documents or reports are directly involved in handling this exception situation?

Accepted Answer

Exception Report. An Exception Report is raised by the Project Manager to inform the Board, and if accepted, an Exception Plan is created to replace the remainder of the current stage.

Answer

Checkpoint Report

Answer

Daily Log

Answer

Project Brief

Question 15

A PRINCE2 project is executing a stage plan. The Project Manager wants to schedule a quality review for a critical deliverable. According to the Quality practice, who should normally chair the quality review meeting?

Accepted Answer

An independent person acting as the chair (such as a designated quality reviewer). To ensure independence and objectivity, the chair of a quality review should not be the person responsible for developing the product (e.g., the Product Author). Often an independent person or a designated quality reviewer chairs it.

Answer

The Product Author who created the deliverable

Answer

Project Assurance

Answer

The Executive from the Project Board

Question 16

In the PRINCE2 Organizing practice, what is the primary role of Project Assurance?

Accepted Answer

To provide independent monitoring of project performance across business, user, and supplier perspectives.. Project Assurance provides independent monitoring and checking of all aspects of project performance and delivery, independent of the Project Manager.

Answer

To own the project Business Case and provide funding.

Answer

To write the detailed product descriptions and build deliverables.

Answer

To manage day-to-day work packages and team tasks.

Question 17

During risk identification in a PRINCE2 project, the team identifies a risk where a key supplier might fail to meet sustainability targets, leading to reputational damage. The team decides to establish joint monitoring committees and share best practices with the supplier to help them succeed. Which risk response category is this?

Accepted Answer

Mitigate. Working collaboratively with a third party to reduce the probability or impact of a threat (or enhance an opportunity) is 'Enhance' for opportunities or 'Mitigate' for threats. Here, helping a supplier succeed to reduce a threat is a collaborative form of mitigation.

Answer

Transfer

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Exploit

Answer

Avoid

Question 18

Which TWO of the following are true regarding the Quality practice in PRINCE2 7? (Choose two)

Accepted Answer

Quality management requires defining customer quality expectations and acceptance criteria.. The Quality practice involves customer quality expectations and acceptance criteria, and requires a Quality Management Approach document. Quality is not about gold-plating, but meeting agreed criteria.

Answer

Quality reviews are optional and only conducted if the budget permits.

Answer

Team Managers are responsible for approving the overarching Quality Management Approach.

Answer

Project managers should encourage teams to exceed agreed acceptance criteria ('gold-plating').

Question 19

A PRINCE2 project is developing a medical device. The quality control process requires an independent review of the device's manufacturing safety standards against ISO requirements. What PRINCE2 term best describes this planned, independent examination?

Accepted Answer

Quality review. An independent examination of quality products and processes is referred to in PRINCE2 as a 'quality review' or audit mechanism.

Answer

Project assurance appraisal

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Stage boundary review

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Exception assessment

Question 20

A project is subjected to a quality audit. The auditor notes that a product was signed off without checking one of the mandatory quality criteria specified in its Product Description. According to the Quality practice, what is the appropriate corrective action?

Accepted Answer

Log an off-specification issue and evaluate whether rework is required to meet the criterion.. If a product fails to meet its quality criteria or was signed off incorrectly, an off-specification or issue must be raised to evaluate the defect and determine if rework is needed.

Answer

Penalize the auditor for finding a non-conformance.

Answer

Automatically reject the entire project stage and restart it.

Answer

Update the Quality Management Approach to exclude that criterion retroactively.