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  3. CIA-III

Financial CIA-III Exam (page: 21)
Financial The Certified Internal Auditor Part 3
Updated on: 16-Feb-2026

Viewing Page 21 of 312
CIA-III PDF 1554 Questions

A Gantt chart:

  1. Shows the critical path for a project.
  2. Is used for determining an optimal product mix.
  3. Shows only the activities along the critical path of a network.
  4. Does not necessarily show the critical path through a network.

Answer(s): D

Explanation:

The major advantage of a Gantt chart is its simplicity: It requires no special tools or mathematics. However, it depicts only the interrelationships between tasks in a limited way. Thus, trying to identify a project's critical path from a Gantt chart may not be feasible.



In the Gantt chart below, shaded bars represent completed portions of activities, bars depicted with broken lines represent uncompleted portions, and blank bars represent activities notyet begun.



As of week 8, the Gantt chart shows that the project is:

  1. Complete.
  2. Ahead of schedule.
  3. On schedule.
  4. Behind schedule.

Answer(s): C

Explanation:

Activities B and C are the only activities that should be underway during week 8. Since both are underway and on schedule, the project is on schedule.



When using PERT (Program Evaluation Review Technique), the expected time for an activity when given an optimistic time (a), a pessimistic time (b),andamostlikelytime(m) is calculated by which one of the following formulas?

  1. (b - a) + 2
  2. (a + b) + 2
  3. (a + 4m+b) + 6
  4. (4abm) + 6

Answer(s): C

Explanation:

PERT was developed to aid managers in controlling large, complex projects. PERT analysis includes probabilistic estimates of activity completion times. Three time estimates are made:
optimistic, most likely, and pessimistic. The time estimates for an activity are assumed to approximate a beta probability distribution. PERT approximates the mean of the beta distribution by dividing the sum of the optimistic time, the pessimistic time, and four times the most likely time by six.



The process of adding resources to shorten selected activity times on the critical path in project scheduling is called:

  1. Crashing.
  2. The Delphi technique.
  3. ABC analysis.
  4. A branch-and-bound solution.

Answer(s): A

Explanation:

Crashing is the process of adding resources to shorten activity times on the critical path in project scheduling.



The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc., are presented below. The numbers in the diagram are the expected times (in days) to perform each activity in the project.


The expected time of the critical path is:

  1. 12.0 days
  2. 13.0 days
  3. 11.5 days
  4. 11.0 days

Answer(s): B

Explanation:

The critical path is the longest path. The longest path in the diagram is A-D-E, which requires 13 days (5.5 + 7.5) based on expected times.



Viewing Page 21 of 312



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