75 of 502 questions · Page 2/7 · PRINCE2 Processes · Answers revealed
Match each PRINCE2 technique to its description.
Drag a concept onto its matching description — or click a concept then click the description.
A technique to identify, define, and structure the products.
A technique to assess the quality of products.
A technique to evaluate the probability and impact of risks.
A technique to manage changes to baselined products.
Why these pairings
These are recommended techniques in PRINCE2.
In which process does the Project Board authorize an Exception Plan?
Correct. The Project Board authorises the Exception Plan as part of its direction.
Why this answer
The Directing a Project process includes the activity of authorizing an Exception Plan when a stage tolerance is forecast to be breached. The Project Board decides on the exception plan.
In the Managing Product Delivery process, who is responsible for producing Checkpoint Reports?
The Team Manager produces Checkpoint Reports during MP to report on Work Package progress.
Why this answer
Checkpoint Reports are produced by the Team Manager in MP to inform the Project Manager of progress on Work Package activities.
Which process is triggered when a Stage Plan's tolerances are forecast to be exceeded?
SB includes creating an Exception Plan when tolerances are exceeded.
Why this answer
Managing a Stage Boundary is used to produce an Exception Plan and request authorization from the Project Board.
During the Controlling a Stage process, the project manager receives a Checkpoint Report from the team manager. What is the primary purpose of this report?
Correct. Checkpoint Reports are from TM to PM about work package status.
Why this answer
Checkpoint Reports provide the PM with progress information on work packages, including actuals, forecasts, and issues, to support day-to-day management.
Which THREE of the following are activities of the Managing a Stage Boundary process?
SB updates the Project Plan to reflect actual progress and changes.
Why this answer
SB includes reporting on current stage performance, planning the next stage, and updating the project plan. Authorizing Work Packages is done in CS; directing the project is done in DP.
A team is working on a Work Package. The Team Manager needs to report progress to the Project Manager. Which report should be used?
Checkpoint Reports are produced by the Team Manager to report on Work Package progress.
Why this answer
The Checkpoint Report is the progress report produced by the Team Manager and sent to the Project Manager during the Managing Product Delivery process.
Which process is responsible for authorizing the initiation of a project?
DP includes the 'Authorize Initiation' activity, where the Project Board decides whether to proceed with initiation.
Why this answer
Directing a Project (DP) is the process by which the Project Board authorizes initiation, stage plans, and project closure. Starting Up a Project (SU) prepares for initiation but does not authorize it.
What is the purpose of the Starting Up a Project process?
SU checks that the project has a viable business case and the right people before initiation.
Why this answer
The Starting Up a Project process is designed to ensure that the prerequisites for initiating a project are in place before any significant work begins. It focuses on verifying that the project has a viable business justification, a clear project mandate, and that necessary resources and personnel are available, thereby preventing wasted effort on projects that lack a solid foundation.
Exam trap
PeopleCert often tests the distinction between 'Starting Up a Project' and 'Initiating a Project' by making candidates confuse the creation of the Project Initiation Documentation with the earlier preparatory work, so the trap here is assuming that producing the PID is the first process rather than the second.
How to eliminate wrong answers
Option A is wrong because producing the Project Initiation Documentation is the purpose of the Initiating a Project process, not Starting Up a Project. Option B is wrong because authorizing the start of the project is done by the Project Board via the Directing a Project process, not by Starting Up a Project. Option C is wrong because managing the day-to-day activities of the project is the responsibility of the Managing a Stage Boundary and Controlling a Stage processes, not Starting Up a Project.
During the Managing Product Delivery process, the Team Manager identifies a quality issue that will delay the product's delivery. What should the Team Manager do?
The Team Manager reports progress via Checkpoint Reports; the PM decides next steps.
Why this answer
The Team Manager should raise the issue to the Project Manager, who will handle it in CS. The Team Manager cannot escalate directly to the Board.
Who is responsible for authorizing the initiation of a project?
The Project Board authorizes initiation in DP.
Why this answer
The Project Board, through the Directing a Project process, authorizes the initiation of a project.
What is the difference between Starting Up a Project (SU) and Initiating a Project (IP)?
SU confirms viability; IP creates detailed foundations.
Why this answer
Option D is correct. SU is pre-project to decide if initiation is worthwhile; IP formally establishes the project foundation.
Which TWO of the following are true about the Managing a Stage Boundary process?
The End Stage Report is a key output of SB.
Why this answer
SB is performed near the end of each stage (except the final) to produce an End Stage Report, plan the next stage, and update the Project Plan. It also captures lessons and can produce an Exception Plan if needed.
Which process is responsible for authorizing the work to be done in a stage?
Correct. The Project Board authorizes stage plans via DP.
Why this answer
The Directing a Project process is where the Project Board authorizes the work for each stage, including the initiation stage and subsequent stages.
During the Initiating a Project process, which management approach is created to define how benefits will be realized?
The Benefits Management Approach defines how the project's benefits will be realized.
Why this answer
The Benefits Management Approach is created during the Initiating a Project process to define how and when the expected benefits from the project will be measured, realized, and reviewed. It ensures that the project's outputs translate into measurable outcomes aligned with the business case, and it is a key component of the PRINCE2 principle of continued business justification.
Exam trap
PeopleCert often tests the distinction between management approaches that focus on process (e.g., Risk, Quality, Communication) versus those that focus on outcomes (Benefits Management Approach), leading candidates to confuse the Benefits Management Approach with the Business Case or other approaches.
How to eliminate wrong answers
Option A is wrong because the Communication Management Approach defines the methods and frequency of stakeholder communication, not how benefits will be realized. Option B is wrong because the Risk Management Approach describes how risks will be identified, assessed, and controlled, not how benefits are tracked. Option C is wrong because the Quality Management Approach specifies the quality standards and control methods for project products, not the realization of benefits.
What is the purpose of the Directing a Project process?
The Project Board authorizes key decisions and provides direction.
Why this answer
Directing a Project enables the Project Board to make key decisions and exercise overall control, without managing day-to-day activities.
The project manager is preparing the next Stage Plan during the Managing a Stage Boundary process. Which document should be used as the basis for updating the Business Case?
Correct. The End Stage Report provides actual results vs planned, informing the BC update.
Why this answer
The End Stage Report provides the current stage's performance, which feeds into the Business Case update. The Benefits Management Approach and other documents are also considered, but the End Stage Report is key for performance data.
Which process covers the Project Board's decision to authorise project closure?
DP includes the activity 'Authorise Project Closure'.
Why this answer
The Project Board uses the Directing a Project process to authorise closure, based on the recommendation from CP.
During the Controlling a Stage process, the Project Manager receives a Checkpoint Report. Who prepared this report?
Why this answer
Checkpoint Reports are prepared by the Team Manager and sent to the Project Manager as part of Managing Product Delivery. They inform the Project Manager of progress on Work Packages.
Who is responsible for producing the End Stage Report?
The Project Manager produces the End Stage Report as part of Managing a Stage Boundary.
Why this answer
The Project Manager produces the End Stage Report during the Managing a Stage Boundary process.
Which process includes the activity 'Assembling the Project Initiation Documentation'?
IP includes the activity to assemble the PID.
Why this answer
Assembling the PID is a key activity in the Initiating a Project process. Starting Up a Project assembles the Project Brief. Directing a Project authorises initiation.
Managing a Stage Boundary does not assemble PID.
Which document is the key output of the Initiating a Project process?
Correct: The PID is the key output of Initiating a Project.
Why this answer
The Initiating a Project process is where the project's foundations are solidified, and its key output is the Project Initiation Documentation (PID). The PID consolidates all the planning and analysis from the initiation stage into a single, comprehensive document that defines the project's scope, objectives, business justification, risks, and management controls, serving as the baseline for the project board's authorization to proceed.
Exam trap
PeopleCert often tests the distinction between the Project Brief (from Starting Up a Project) and the PID (from Initiating a Project), trapping candidates who confuse the two as both are created early in the project lifecycle.
How to eliminate wrong answers
Option A is wrong because the Project Brief is created during the Starting Up a Project process, not the Initiating a Project process; it provides the initial outline and justification but lacks the detailed planning and controls that the PID contains. Option C is wrong because the Benefits Review Plan is a separate document produced during the Initiating a Project process, but it is not the key output; it is a component of the PID or a standalone plan that defines how and when the project's benefits will be reviewed. Option D is wrong because the End Project Report is produced during the Closing a Project process, not during initiation; it summarizes the project's performance against the PID and is used to formally close the project.
During the Managing a Stage Boundary process, the project manager produces an End Stage Report. Who receives this report and what decision do they make?
Correct. The Board reviews the End Stage Report and decides on stage authorization.
Why this answer
The End Stage Report is sent to the Project Board, who then decides whether to authorize the next stage (or, if the project is in the final stage, to close the project).
Which THREE of the following are activities performed during the Managing a Stage Boundary process?
Correct. The next stage plan is produced in SB.
Why this answer
In SB, the PM produces the End Stage Report, updates the Project Plan, and produces a Stage Plan for the next stage. Authorizing work packages is done in CS. Producing Highlight Reports is done in CS.
Which THREE of the following are responsibilities of the Project Board during the Directing a Project process?
The Project Board authorizes closure in DP.
Why this answer
The Project Board is responsible for making key decisions and exercising overall control over the project. Authorizing closure (A) ensures the project has met its objectives and that the product has been accepted before formal closure. Authorizing an Exception Plan (B) is a board-level decision to approve a deviation from the plan when a tolerance is forecast to be exceeded.
Authorizing initiation (C) gives the go-ahead for the project to proceed from the initiation stage into the detailed planning and delivery stages.
Exam trap
The trap here is that candidates often confuse the Project Board's strategic decision-making responsibilities with the Project Manager's operational tasks, such as managing daily work or producing plans, leading them to incorrectly select options D or E.
The Project Board is reviewing an Exception Plan submitted by the Project Manager. Which process is the Project Board performing?
Correct. The Project Board authorizes Exception Plans in DP.
Why this answer
The Project Board authorizes Exception Plans during the Directing a Project process, which includes decisions on stage plans and exceptions.
Which THREE of the following are activities performed during the Directing a Project process?
The Project Board authorizes closure during Directing a Project.
Why this answer
Directing a Project includes authorizing initiation, authorizing stages, giving ad-hoc direction, and authorizing closure. Producing Highlight Reports is for the PM during Controlling a Stage. Appointing the Project Manager is during Starting Up a Project.
During the Closing a Project process, which document is produced to capture lessons for future projects?
Lessons Report is the key document for capturing lessons in CP.
Why this answer
Option A is correct. The Lessons Report is produced in CP to document lessons learned for future benefit.
The Project Board is considering a request to close a project early due to loss of business justification. Which process is the Project Board using to make this decision?
Correct. DP includes the activity 'Authorise Project Closure'.
Why this answer
The Project Board uses the Directing a Project process throughout the project, including authorising closure. Closing a Project is the process that produces the recommendation, but the decision to close is taken by the Project Board via Directing a Project.
What is the difference between the Starting Up a Project process and the Initiating a Project process?
SU outputs Project Brief; IP outputs PID.
Why this answer
SU is a pre-project process to decide whether to initiate; IP formally establishes the project with detailed planning and PID.
Which document is the key output of the Initiating a Project process?
Correct: PID is the key output of IP.
Why this answer
The Project Initiation Documentation (PID) is the key output of IP. It provides the foundation for the project.
Who is responsible for producing Checkpoint Reports?
The Team Manager produces Checkpoint Reports to inform the Project Manager of progress.
Why this answer
Checkpoint Reports are produced by the Team Manager and sent to the Project Manager as part of Managing Product Delivery.
During the Managing a Stage Boundary process, which report is produced to provide the Project Board with information on the current stage's performance?
Correct. The End Stage Report is a key output of SB.
Why this answer
The End Stage Report is produced during the Managing a Stage Boundary process to summarize the current stage's performance and inform the Project Board's decision to authorize the next stage.
What is the key output of the Initiating a Project process?
The PID is the definitive document created during IP to define the project.
Why this answer
The Initiating a Project process is where the project's scope, objectives, and approach are fully defined and documented. Its key output is the Project Initiation Documentation (PID), which consolidates all the baseline plans and strategies needed to justify and manage the project. The PID replaces the Project Brief, which is created earlier in the Starting Up a Project process.
Exam trap
The trap here is that candidates confuse the Project Brief (created in Starting Up a Project) with the Project Initiation Documentation (created in Initiating a Project), as both contain project definitions, but the PID is the comprehensive, approved baseline that replaces the brief.
How to eliminate wrong answers
Option A is wrong because the Project Brief is an output of the Starting Up a Project process, not the Initiating a Project process; it is used as input to initiate the project but is superseded by the PID. Option C is wrong because a Checkpoint Report is a periodic progress report produced during the Managing a Stage Boundary and Controlling a Stage processes, not during initiation. Option D is wrong because the End Stage Report is produced at the end of each management stage (including the final stage) to report stage progress, not at the start of the project.
Which process is triggered when the Project Board authorizes a stage plan?
After a stage plan is authorized, the PM begins controlling that stage.
Why this answer
When the Project Board authorizes a stage plan, the next process to execute is Controlling a Stage, where the Project Manager manages the work of that stage.
Which TWO of the following are differences between the Starting Up a Project (SU) and Initiating a Project (IP) processes?
SU determines if the project is worthwhile; IP develops detailed management approaches.
Why this answer
Option A is correct because the Starting Up a Project (SU) process is designed to evaluate the project's viability by creating the Project Brief and checking if the project is worthwhile, while the Initiating a Project (IP) process focuses on establishing a solid management foundation by creating the Project Initiation Documentation (PID) and detailed plans for how the project will be managed and controlled.
Exam trap
The trap here is that candidates often confuse the outputs of SU and IP, mistakenly thinking the PID is produced in SU, or that SU is optional, when in fact both processes are mandatory and serve distinct pre- and post-authorization roles.
Who is responsible for authorising the start of a project in PRINCE2?
The Project Board authorises the project, initiation, and all key decisions.
Why this answer
The Project Board, through the Directing a Project process, authorises initiation, the project itself, stage plans, and closure. The Project Manager recommends but does not authorise. The Senior User and Senior Supplier are members of the Project Board.
A project is in the Managing Product Delivery process. The Team Manager discovers a problem that will delay the completion of a Work Package beyond its agreed tolerance. What should the Team Manager do?
The Team Manager should escalate to the Project Manager, who may then raise an Exception Report if needed.
Why this answer
The Team Manager must escalate the issue to the Project Manager promptly, as they cannot exceed Work Package tolerances without authorization. The Project Manager will then handle the escalation.
Which process is responsible for appointing the Executive and the Project Manager?
SU appoints the Executive and Project Manager as part of establishing the project team.
Why this answer
The Starting Up a Project process is responsible for appointing the Executive and the Project Manager because it occurs before the project is formally initiated. During this pre-project process, the project mandate is reviewed, and key roles are assigned to ensure the project has the necessary leadership and management before proceeding to the Initiation Stage.
Exam trap
PeopleCert often tests the distinction between processes that occur before vs. after project initiation; the trap here is confusing the 'Initiating a Project' process (which creates detailed plans) with the 'Starting Up a Project' process (which appoints key roles and evaluates the project mandate).
How to eliminate wrong answers
Option B (Initiating a Project) is wrong because this process occurs after the Executive and Project Manager have already been appointed; it focuses on creating the Project Initiation Documentation and detailed plans, not on appointing roles. Option C (Directing a Project) is wrong because this process is performed by the Project Board throughout the project and covers high-level decision-making and control, not the initial appointment of the Executive or Project Manager. Option D (Controlling a Stage) is wrong because this process is executed by the Project Manager during a stage to manage day-to-day work and monitor progress, not to appoint senior roles.
During a stage, a Team Manager identifies a quality problem with a product. This is reported as an Off-specification. According to PRINCE2, what is the first action the Project Manager should take?
This is the correct first step per PRINCE2's issue management procedure.
Why this answer
According to PRINCE2, when an Off-specification is identified, the Project Manager must first log it in the Issue Register and assess its impact. This ensures that all issues are formally recorded and evaluated before any corrective action is taken, maintaining control over project baselines.
Exam trap
PeopleCert often tests the misconception that immediate corrective action (like rework or escalation) is the first step, when PRINCE2 mandates formal logging and impact assessment first to maintain control and auditability.
How to eliminate wrong answers
Option B is wrong because rejecting the product and asking for immediate rework bypasses the formal issue management process; the Off-specification must first be logged and assessed to determine the appropriate response. Option C is wrong because requesting a change to quality criteria is a potential resolution after assessment, not the first action; the issue must be logged first. Option D is wrong because escalation to the Project Board via an Exception Report only occurs if the issue exceeds the Project Manager's delegated authority or stage tolerances, which is not the first step.
Which THREE of the following are responsibilities of the Project Board during the Directing a Project process?
Project Board authorises initiation.
Why this answer
The Project Board authorises initiation, stage plans, and project closure. They do not create Work Packages (PM does) nor approve Checkpoint Reports (PM receives them).
A Project Manager receives a Checkpoint Report from a Team Manager. Which process is the Project Manager executing when they review this report?
CS is where the PM manages day-to-day, including reviewing Checkpoint Reports from Team Managers.
Why this answer
The Project Manager uses the Controlling a Stage process to monitor progress, review Work Packages, and manage issues. Checkpoint Reports are received from Team Managers during CS.
What is the purpose of the Managing Product Delivery process?
MP ensures that work packages are delivered correctly and meet quality criteria.
Why this answer
The Managing Product Delivery process is designed to control the link between the Project Manager and the Team Manager(s) by ensuring that work on products is authorized, executed, and delivered according to the agreed quality criteria and acceptance requirements. Its primary purpose is to create and deliver the project's products to the specified quality standards, as defined in the Product Description and Work Package.
Exam trap
The trap here is confusing the purpose of Managing Product Delivery with that of Managing a Stage Boundary (planning) or Directing a Project (governance), leading candidates to select a plausible but incorrect process role.
How to eliminate wrong answers
Option B is wrong because Managing Product Delivery does not manage the day-to-day work of the Project Manager; rather, it manages the work of the Team Manager(s) and teams. Option C is wrong because planning the next stage in detail is the purpose of the Managing a Stage Boundary process, not Managing Product Delivery. Option D is wrong because providing direction and control to the Project Board is the purpose of the Directing a Project process, which operates at the strategic level, not the delivery level.
Which role produces Highlight Reports?
PM produces Highlight Reports.
Why this answer
Highlight Reports are produced by the Project Manager and sent to the Project Board during Controlling a Stage.
Which THREE activities are performed in the Managing a Stage Boundary process?
SB creates the Stage Plan for the next stage (or an Exception Plan).
Why this answer
SB includes planning the next stage, updating the project plan, reporting on the current stage (End Stage Report), and capturing lessons. Authorizing Work Packages is done in CS, and delivering products is in MP.
Which TWO roles are appointed during the Starting Up a Project process?
The Executive is appointed in SU as the key decision-maker.
Why this answer
During SU, the Executive and the Project Manager are appointed. The Project Board is also appointed, but the question asks for two specific roles. The Senior User and Senior Supplier are part of the Project Board but may be appointed later if not already in place.
Which process is responsible for the project board giving ad-hoc direction to the project manager?
Correct. DP covers the Project Board's role in giving direction and making key decisions.
Why this answer
Directing a Project is the process that covers the Project Board's decision-making and direction-giving activities throughout the project, including ad-hoc direction.
What is the first process in PRINCE2?
SU is the first process.
Why this answer
Starting Up a Project is the pre-project process that occurs before initiation.
Which THREE of the following are activities performed in the Closing a Project process?
The End Project Report is prepared in CP.
Why this answer
CP includes handing over products, producing the End Project Report, and recommending closure. Authorizing closure is done by the Board in DP; authorizing Work Packages is done in CS.
In the Closing a Project process, which document is produced to capture lessons learned for future projects?
Correct: The Lessons Report captures lessons learned for future projects.
Why this answer
The Lessons Report is produced during CP to document lessons for future benefit. The End Project Report also includes lessons, but the specific document for lessons is the Lessons Report.
In the Controlling a Stage process, the Project Manager receives a Checkpoint Report indicating that a work package is behind schedule. What should the Project Manager do first?
PM should first assess and take corrective action if possible, per management by exception.
Why this answer
Option D is correct because the PRINCE2 Controlling a Stage process requires the Project Manager to first assess any deviation from the stage plan to see if corrective action can bring performance back within tolerance. The Checkpoint Report is a control mechanism that triggers an exception assessment, not an immediate escalation. Only if the deviation exceeds tolerance should the Project Manager escalate via an Exception Report.
Exam trap
The trap here is that candidates often assume any schedule delay requires immediate escalation to the Project Board, but PRINCE2 mandates first assessing whether corrective action can keep the stage within tolerance before escalating.
How to eliminate wrong answers
Option A is wrong because immediate escalation via an Exception Report is only required when the deviation is forecast to exceed stage tolerance; the Project Manager must first assess the impact and determine if corrective action can resolve the issue within tolerance. Option B is wrong because issuing a new Work Package does not address the underlying schedule issue; the current Work Package should be managed through corrective action or escalation, not replaced arbitrarily. Option C is wrong because closing the Work Package and reporting failure in the Highlight Report bypasses the proper exception management process; the Project Manager should first attempt corrective action or escalate if necessary, not prematurely close the work package.
In the Managing a Stage Boundary process, what is produced to request permission to proceed to the next stage?
The Stage Plan is submitted for approval.
Why this answer
The End Stage Report and next Stage Plan are produced; the Project Board then decides in DP.
Refer to the exhibit. The project manager is reviewing a completed work package in Stage 2. The actual cost exceeds the planned cost by $5,000. What should the project manager do?
Since the cost variance exceeds the work package tolerance, the project manager must escalate via an exception report.
Why this answer
Option C is correct because the work package is complete but the actual cost exceeds the planned cost by $5,000, which exceeds the tolerance set for the work package. In PRINCE2, any deviation beyond the agreed tolerance must be escalated to the Project Board as an exception, as the Project Manager cannot approve such variances themselves.
Exam trap
The trap here is that candidates often assume a completed work package with a cost overrun can simply be accepted or recorded, but PRINCE2 requires escalation whenever tolerances are exceeded, regardless of completion status.
How to eliminate wrong answers
Option A is wrong because simply updating the project plan to reflect the actual cost does not address the fact that the cost variance exceeds the work package tolerance; the Project Manager must escalate the exception. Option B is wrong because recording the actual cost and continuing without escalation ignores the governance requirement to report exceptions when tolerances are breached. Option D is wrong because accepting the variance as the work package is complete violates the PRINCE2 principle of managing by exception; the Project Board must be informed of any tolerance deviation.
What is the purpose of the Closing a Project process?
Correct purpose.
Why this answer
The purpose is to provide a controlled close, confirm benefits review arrangements, and release resources.
What is the purpose of the Starting Up a Project process?
SU ensures that the necessary conditions exist before committing to the initiation stage.
Why this answer
The Starting Up a Project process ensures that the prerequisites for initiating a project are in place, such as having a viable project idea and an appointed Executive and Project Manager. It answers the question 'Do we have a viable and worthwhile project?' before proceeding to initiation.
Which process is used by the Project Board to give ad-hoc direction to the Project Manager?
The Project Board gives ad-hoc direction through Directing a Project.
Why this answer
Directing a Project includes giving ad-hoc direction as one of its key activities.
During the Controlling a Stage process, the Project Manager receives a Checkpoint Report showing that a Work Package is behind schedule. What should the Project Manager do first?
The PM should manage deviations within tolerance before escalating.
Why this answer
The PM should assess the impact on the stage and take corrective action within the stage tolerance. If tolerance is threatened, then escalate.
A Project Manager is preparing the Project Initiation Documentation. In which process is this work done?
Correct. The PID is created during the Initiating a Project process.
Why this answer
The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, which establishes the solid foundation for the project.
A project is forecast to exceed its stage cost tolerance. What is the Project Manager's first action?
The PM must escalate immediately.
Why this answer
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.
Exam trap
The trap here is that candidates often think they can 'fix' the overrun internally or report it later, but PRINCE2 mandates immediate escalation via an Exception Report when tolerance is forecast to be exceeded.
How to eliminate wrong answers
Option B is wrong because continuing the stage and reporting the overrun only in the End Stage Report violates the principle of management by exception; the project manager must escalate as soon as tolerance is forecast to be exceeded, not wait until the end of the stage. Option C is wrong because requesting a change to the project budget from the Senior User is not the correct escalation path; budget changes are a project board decision, and the Senior User is a board member but the request must go via an Exception Report to the entire board. Option D is wrong because proceeding with the next stage early does not address the current stage overrun and is outside the project manager's authority without board approval; stage boundaries are controlled by the board.
Which TWO of the following statements about the Directing a Project process are true?
Correct: Authorizing initiation is a key decision in DP.
Why this answer
The Directing a Project process is used by the Project Board to make key decisions and exercise overall control, including authorizing the initiation of the project. The Project Board does not manage day-to-day work; that is the responsibility of the Project Manager via the Managing a Stage process.
Exam trap
The trap here is confusing the roles: candidates often think the Project Manager uses Directing a Project for daily tasks, but PRINCE2 clearly assigns that to Managing a Stage, while Directing a Project is the Board's high-level control process.
Which process is used by the Project Board to authorize the next stage of a project?
DP includes authorization of stage plans.
Why this answer
The Project Board authorizes the next stage as part of Directing a Project, based on the End Stage Report and next Stage Plan from SB.
During the Managing Product Delivery process, what is used to assign work to the Team Manager?
Work Package is the formal authorisation to deliver products.
Why this answer
The Project Manager authorises a Work Package to assign work to the Team Manager.
The Project Board authorizes an Exception Plan. In which process does the Project Manager produce the Exception Plan?
The Managing a Stage Boundary process produces Exception Plans when tolerances are forecast to be exceeded.
Why this answer
The Exception Plan is produced by the Project Manager within the Managing a Stage Boundary process. This process is triggered when the Project Board authorizes an Exception Plan to replace the current Stage Plan due to a deviation beyond tolerance. The Project Manager then creates the Exception Plan and submits it for approval.
Exam trap
PeopleCert often tests the misconception that Exception Plans are produced in Controlling a Stage, but that process handles day-to-day monitoring and corrective actions, not the creation of a new plan, which is reserved for the stage boundary.
How to eliminate wrong answers
Option A is wrong because Initiating a Project is where the Initiation Stage Plan and Project Plan are created, not Exception Plans. Option B is wrong because Directing a Project is the process for the Project Board to make decisions and authorize plans, not for producing plans. Option D is wrong because Controlling a Stage focuses on day-to-day management of work within a stage, not on producing an Exception Plan, which is a planning activity that occurs at stage boundaries.
A project is in the Closing a Project process. What must be produced before the Project Board can authorise project closure?
These are the key outputs of CP that the Board uses to decide closure.
Why this answer
In PRINCE2, the Closing a Project process requires the End Project Report and the Lessons Report to be produced before the Project Board can authorize project closure. The End Project Report provides a summary of the project's performance against its planned objectives, while the Lessons Report captures lessons learned for future projects. These two reports together form the basis for the Project Board's decision to formally close the project.
Exam trap
PeopleCert often tests the distinction between reports produced during the project (like End Stage Reports) and those required specifically for project closure, leading candidates to mistakenly select End Stage Report as the answer.
How to eliminate wrong answers
Option A is wrong because the End Stage Report is produced at the end of each management stage, not during the Closing a Project process; it is used to report progress to the Project Board for stage boundary decisions, not for project closure. Option B is wrong because the Project Initiation Documentation (PID) is created during the Initiating a Project process and is used as a baseline for the project, not as an output of the Closing a Project process. Option C is wrong because an Exception Report is produced when a project is forecast to exceed its tolerances, triggering an exception plan; it is not a required output for authorizing project closure.
Which process is responsible for authorizing the initiation of a project?
The Project Board authorizes initiation as part of Directing a Project.
Why this answer
Directing a Project is the process by which the Project Board makes key decisions, including authorizing initiation. Starting Up a Project is a pre-project process that does not involve authorization.
During the Managing a Stage Boundary process, which document is produced to seek approval to proceed to the next stage?
The End Stage Report informs the Project Board of progress and seeks approval to proceed.
Why this answer
The End Stage Report summarizes performance of the current stage and includes a recommendation for the next stage. The Project Board then decides whether to authorize the next stage.
Which TWO of the following are outputs of the Closing a Project process?
Correct. The Lessons Report is produced in CP.
Why this answer
CP produces the End Project Report, Lessons Report, and project closure recommendation. The Project Plan is updated in SB, and the Business Case is updated throughout.
What is the purpose of the Starting Up a Project process?
SU establishes the basic conditions for the project to proceed.
Why this answer
SU ensures that the project has a viable Business Case and that the necessary people are appointed before committing to the full initiation effort.
Which THREE of the following are responsibilities of the Project Manager during the Controlling a Stage process?
Correct. The PM monitors and takes action within tolerances.
Why this answer
The Project Manager in Controlling a Stage authorises Work Packages, monitors progress, and reports to the Project Board via Highlight Reports. The Project Board authorises stage plans, and the Team Manager produces Checkpoint Reports.
Which TWO of the following are true about the Managing Product Delivery process?
In MP, the Team Manager accepts the Work Package.
Why this answer
In PRINCE2, the Managing Product Delivery process is where the Team Manager executes the work defined in a Work Package. The Team Manager accepts the Work Package from the Project Manager (Option B) and then delivers the products, sending Checkpoint Reports to the Project Manager (Option D) to report progress. These two activities are core responsibilities within this process.
Exam trap
PeopleCert often tests the distinction between who reports to whom in PRINCE2 processes; the trap here is confusing the Team Manager's Checkpoint Reports (to the Project Manager) with the Project Manager's Highlight Reports (to the Project Board), leading candidates to incorrectly select Option A.
Which of the following statements about Starting Up a Project (SU) and Initiating a Project (IP) is true?
SU checks the basic conditions and decides whether to proceed to initiation.
Why this answer
SU is a pre-project process that ensures the project is viable before committing to full initiation. IP formally establishes the project and produces the PID.
During the Controlling a Stage process, the Project Manager identifies a deviation that is expected to remain within the stage tolerance. What should the Project Manager do?
The Project Manager can handle deviations within tolerance without board involvement.
Why this answer
If the deviation is within stage tolerance, corrective action can be taken by the Project Manager without escalation. The Project Manager should take corrective action to bring the work back on track.
What is the purpose of the Directing a Project process?
This is the purpose of Directing a Project.
Why this answer
Directing a Project is the process by which the Project Board provides overall direction and control, making key decisions and authorizing initiation, stages, and closure.
In which process is the Project Manager appointed?
SU includes selecting the Project Manager and assigning them to the project.
Why this answer
The Project Manager is appointed during the Starting Up a Project process, as part of preparing for initiation.
In which process does the Project Board decide whether to authorise an Exception Plan?
DP includes authorisation of Exception Plans.
Why this answer
When an exception occurs, the PM produces an Exception Plan during Managing a Stage Boundary or Controlling a Stage, and the Board authorises it in Directing a Project.
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