Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 65

Which of the following statements is correct regarding the use of a program evaluation and review technique (PERT) model?
It makes use of a probability model to arrive at a realistic estimate of time necessary for completion of the audit engagement.
It requires that activities are performed in sequence such that each task is completed before the commencement of the next activity.
It remains fixed once completed to act as a baseline for measuring the performance of the audit staff following completion of the engagement.
It begins with the auditor-in-charge identifying the overall scope and then breaking down the audit engagement into identifiable activity units.

Answer options

• A. 1 and 3 only
• B. 1 and 4 only
• C. 2 and 3 only
• D. 2 and 4 only

Correct answer: B

Explanation

The correct answer is B because a PERT model utilizes a probability approach to provide a realistic time estimate for project completion and begins with defining the scope before breaking it down into tasks. Options A, C, and D incorrectly assert that certain aspects of the PERT model are either fixed or sequential, which is not true in the context of how PERT functions.