PMI Professional in Business Analysis (PMI-PBA) — Question 16

A business analyst is working with the project manager, company auditors, and project stakeholders to determine whether formal signoff should be required for the project. For which reason would the business analyst recommend formal signoff to the group?

Answer options

• A. The organization follows an iterative project life cycle.
• B. The project impact is contained within a small department of the company.
• C. Errors in the product could result in financial solvency.
• D. The industry is unregulated.

Correct answer: C

Explanation

The correct answer is C because if errors in the product could jeopardize financial solvency, formal signoff is crucial to ensure that all stakeholders agree on the project's quality and requirements. Options A and B are less relevant as they do not directly relate to the need for formal approval, while D is incorrect since regulation does not inherently negate the need for signoff when financial risks are involved.