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  3. CIA-III

Financial CIA-III Exam (page: 58)
Financial The Certified Internal Auditor Part 3
Updated on: 17-Feb-2026

Viewing Page 58 of 312
CIA-III PDF 1554 Questions

The following information and diagram apply to a project:



The earliest completion time for the project is:

  1. 11 days.
  2. 14 days.
  3. 15 days.
  4. 20 days.

Answer(s): C

Explanation:

The two paths through the network are A-C-E 5 + 4 + 6 = 15 days) and B-D-E 3 +2 + 6 = 11 days). The critical or longest path is thus A-C-E. Hence, the earliest completion time is 15 days.



Which of the following terms is not used in project management?

  1. Dummy activity.
  2. Latest finish.
  3. Optimistic time.
  4. Lumpy demand.

Answer(s): D

Explanation:

Project management concerns managing teams assigned to special projects. Lumpy demand refers to periodic demand for a product or service that increases in large, lumpy increments.



Activity scheduling information for the installation of a new computer system is given below



The earliest completion time for the project is:

  1. A-C.
  2. B-E.
  3. A-D-E.
  4. B-D-C.

Answer(s): C

Explanation:

The critical path is the longest path because it defines the minimum duration of the project.
A-D-E 4 + 6 + 5 = 15) is the critical path.



In a critical path analysis, if slack time in an activity exists, the activity:

  1. Is not essential to the overall project.
  2. Is a backup activity to replace a main activity should it fail.
  3. Could be delayed without delaying the overall project.
  4. Involves essentially no time to complete.

Answer(s): C

Explanation:

Slack is the free time associated with each activity. In other words, paths that are not critical have slack time. Slack represents unused resources that can be diverted to the critical path.



The primary difference between PERT and CPM is that:

  1. CPM uses probabilities on the activity times and PERT does not.
  2. PERT considers activity costs and CPM does not.
  3. PERT can assign probabilities to activity times and CPM does not.
  4. CPM considers activity costs and PERT does not.

Answer(s): D

Explanation:

Both PERT and CPM are network analysis techniques. But CPM was developed independently of PERT and is widely used in the construction industry. CPM may be thought of as a subset of PERT. Like PERT, it is a network technique, but, unlike PERT, it uses deterministic time and cost estimates. Its advantages include cost estimates plus the concept of "crash" efforts and costs. Activity times are estimated for normal effort and crash effort. Crash time is the time to complete an activity assuming that all available resources were devoted to the task overtime, extra crew, etc.). Activity costs are also estimated for normal and crash efforts. These estimates allow the project manager to estimate the costs of completing the project if some of the activities are completed on a crash basis. The network diagram is constructed in the same manner as PERT diagrams. Once the diagram is constructed, the critical paths are found for normal and crash times. More than one critical path may exist for each diagram.



Viewing Page 58 of 312



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