CCA Cheat Sheet 2026

The 30 highest-yield CCA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which overhead allocation base is most appropriate for a labor-intensive construction contractor whose overhead costs are primarily driven by supervision? → Direct labor hours or direct labor cost
2. Which document serves as the primary baseline for measuring construction project performance against cost, schedule, and scope? → Performance measurement baseline (PMB)
3. What is the first step in the construction audit process? → Audit planning
4. Which risk management tool assigns numerical probabilities to potential project risks and calculates an expected monetary value for each? → Quantitative risk analysis (Monte Carlo simulation)
5. Under the FAR (Federal Acquisition Regulations), which cost is explicitly unallowable in a government construction contract? → Advertising and public relations costs not related to the contract
6. In construction contract auditing, a 'pencil copy' of a pay application refers to: → A preliminary draft submitted for owner/architect review before formal submission
7. Which contract type places the most financial risk on the contractor? → Fixed-price contract
8. When reviewing change orders during a construction audit, which red flag most warrants further investigation? → A high volume of change orders for work that falls within the original contract scope
9. When reviewing construction project schedules, an auditor should be alert to schedule compression techniques that may increase which project risk? → Quality defects and rework costs
10. When a construction auditor discovers a material weakness in internal controls, the proper disclosure is to: → Report to senior management and the audit committee or board
11. Which insurance type protects an owner against losses arising from contractor-caused property damage during construction? → Contractor's general liability insurance
12. An auditor identifies that a subcontractor's invoices consistently lack supporting backup documentation. The best immediate audit step is to: → Issue a formal audit finding and request documentation from the subcontractor
13. In construction auditing, 'retainage' refers to: → A portion of each progress payment withheld by the owner until project completion
14. Which of the following is an example of a period cost in construction accounting? → Corporate office rent unrelated to any project
15. A construction project auditor uses the 50/50 rule for measuring earned value. This means: → 50% credit when work starts, 50% credit at completion
16. Which technique involves auditors selecting and confirming a random sample of material deliveries directly with suppliers to detect fictitious charges? → Accounts payable confirmation
17. Which of the following best describes 'substantive testing' in a construction audit? → Directly testing account balances and transaction details for completeness and accuracy
18. An 'overbilled' condition on a construction WIP schedule indicates that: → The contractor has billed more than the value of work earned based on completion
19. In competitive sealed bidding, a 'responsive bid' is one that: → Conforms materially to all requirements of the solicitation document
20. A construction auditor reviewing labor records should be alert to employees consistently recording hours just below overtime thresholds, which may indicate: → Manipulation of records to avoid overtime reporting requirements or scrutiny
21. A contractor's estimate-at-completion (EAC) exceeds the original contract price. Under GAAP, the contractor must: → Recognize the full anticipated loss immediately in the current period
22. Which analytical procedure is most useful for detecting unusual patterns in contractor billing on a long-term project? → Trend analysis comparing monthly billings to project progress curves
23. Which method of inventory valuation, when prices are rising, results in the lowest reported net income for a construction materials supplier? → LIFO (Last-In, First-Out)
24. Which type of contract clause protects a contractor from absorbing the full cost of extraordinary material price escalation on long-duration projects? → Price escalation or material cost adjustment clause
25. Concurrent delay in construction contracting refers to: → Overlapping delays caused by both the owner and the contractor occurring at the same time
26. The IIA Code of Ethics requires internal auditors to exhibit which of the following regarding conflicts of interest? → Avoid situations that impair or appear to impair objectivity
27. What are direct costs in a construction project? → Project-specific materials and labor
28. Which clause in a contract helps manage risk by addressing unexpected delays? → Force majeure clause
29. A construction auditor is asked by a senior executive to exclude a significant finding from the audit report to avoid embarrassment. The auditor should: → Refuse and maintain the finding, escalating if necessary
30. A construction auditor verifying Davis-Bacon compliance should review: → Certified payroll records (WH-347) for each worker classification