Exam PMP topic 1 question 490 discussion

A is correct. A project audit is the most appropriate choice to help the project manager understand why an unexpected financial balance is remaining at the end of a project with multiple suppliers. A project audit is a comprehensive review of the project's performance, processes, and outcomes. It aims to identify any discrepancies, variances, or issues that occurred during the project execution. By conducting a project audit, the project manager can examine the financial records, procurement processes, contracts, and interactions with suppliers to identify the reasons behind the unexpected financial balance. The audit will provide insights into any financial discrepancies, such as payments made to suppliers, invoicing errors, cost overruns, or other financial issues that might have contributed to the remaining balance. From ChatGPT

While a project audit examines the overall performance and management of the project, it may not focus specifically on procurement activities or financial discrepancies related to suppliers.

I Think this is A

A is to audit the overall process of the project, not the budget.

D. Procurement audit A procurement audit is conducted to review the procurement process and contracts to ensure that all aspects of the procurement process have been properly administered and closed out. It helps in verifying that all payments have been made, all deliverables have been received, and any remaining financial balances are properly accounted for. Therefore, if a project manager finds an unexpected financial balance remaining at the end of a project involving multiple suppliers, conducting a procurement audit would be the most appropriate action to understand why this has occurred.

A procurement audit dives deep into the procurement activities related to the suppliers involved in the project. This includes reviewing: Contracts and purchase orders Invoices and payments made Supplier performance Any changes or amendments made to contracts By examining these aspects, the procurement audit can help identify potential causes for the unexpected balance, such as: Overpayment to a supplier Missed discounts or rebates Unrecorded credits Unclear contract terms leading to misinterpretations on scope or deliverables Once the reason for the discrepancy is identified, corrective actions can be taken, and the financial closure process can be finalized accurately.

A cover D already, A is the most comprehensive one. D only cover procurement itself but never consider cost consumed from project team.

A is correct.

D. Procurement audit A procurement audit is a process used to review and assess the procurement processes, contracts, and financial aspects of a project involving multiple suppliers. It helps the project manager understand the financial transactions, payments, and any unexpected financial balances that may have occurred during the project. The procurement audit provides insights into the performance of suppliers, contract compliance, and any discrepancies in payments or invoices. It can help identify the reasons behind unexpected financial balances and ensure that all procurement-related matters are properly closed out.

D. Procurement audit

unexpected financial balance may not be specifically because of multiple suppliers. So its better to do an overall audit.

A project audit is a structured review process of a project's performance, progress, and outcome against pre-defined objectives, goals, and criteria. For a project manager, a project audit is really crucial as labor, time, and money are all at stake.

D. Procurement audit would be the best option for understanding why an unexpected financial balance is remaining at the end of a project with multiple suppliers. Procurement audits review procurement-related activities such as the acquisition of goods or services, and the processes used throughout the procurement to identify any discrepancies in costing, cost estimating, contract terms, quality-based selection, supplier’s performance over the contract period, etc. Thus, a procurement audit can help the project manager identify the root cause of the unexpected financial balance remaining and whether it has resulted from procurement-related activities. From chartGPT

A is correct

D, procurement audit

I agree D is correct

I think A is correct as it will covers all project activities that could contributed to the budget balance..