CCA Construction Project Management and Controls Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CCA Construction Project Management and Controls flashcards as text
What is the auditor's primary concern when reviewing a construction project's contingency drawdown process?
Answer: Contingency is used only for unforeseen costs, not known scope additions
Contingency is reserved for genuinely unforeseen events; using it for known scope additions or overruns circumvents proper change order approval processes.
During a project controls audit, an auditor discovers that the project manager approved cost transfers between active and inactive cost codes. This is most likely an attempt to:
Answer: Conceal overruns on active work packages by moving costs to closed codes
Moving costs to inactive or completed cost codes hides current overruns and distorts project financial reporting, a significant red flag for fraud or mismanagement.
Which project management document provides the construction auditor with the most reliable evidence of owner-authorized scope changes?
Answer: Executed change orders signed by the owner's authorized representative
Only fully executed change orders bearing the owner's authorized signature constitute formal evidence that scope changes were reviewed, priced, and approved.
An auditor is reviewing a project's cost forecasting process. Which forecasting approach is considered most reliable for a project that is 60% complete?
Answer: Estimate at completion based on actual cost performance index (CPI) to date
Using the actual CPI-derived EAC at 60% completion leverages real performance data and has statistically proven reliability for final cost prediction.
What is the auditor's recommended action when project management reports consistently show zero cost variances despite a complex, multi-million-dollar project?
Answer: Investigate for potential cost masking or data manipulation in reporting systems
Consistently perfect variance reports on complex projects are statistically improbable and may indicate that costs are being manipulated or transferred to avoid showing overruns.
A construction project's quality management plan requires independent testing of concrete cylinder breaks. An auditor finds no testing records for three months. The primary audit concern is:
Answer: Structural integrity risk and potential hidden cost of remediation if defective concrete was placed
Absence of required concrete strength testing creates structural integrity risk and potential for significant remediation costs if substandard concrete was incorporated into the work.