Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 229

Which of the following statements is true regarding a project life cycle?

Answer options

• A. Risk and uncertainty increase over the life of the project.
• B. Costs and staffing levels are typically high as the project draws to a close.
• C. Costs related to making changes increase as the project approaches completion.
• D. The project life cycle corresponds with the life cycle of the product produced by or modified by the project.

Correct answer: C

Explanation

Option C is correct because as a project progresses and nears completion, making changes becomes more expensive due to the increased complexity and the amount of work already completed. Options A and B are incorrect as risk typically decreases and costs often stabilize or are lower at the project's end. Option D, while related, is not universally true as the project life cycle does not always directly correspond with the product life cycle.