Practice Guide for Audit of Contract Management

  1. The practice guide issued by cag on audit of contract management is mandatory in nature.
    1. True
    2. False
  2. The supplementary series of guidelines issued by cag, for conducting p a is facilitative in nature.
    1. True
    2. False
  3. Audit objectives in contract mangement is to look out for
    1. Whether there exists a system in the organization for project appraisal
    2. Whether there exists a system in the organization for project appraisal which is effectively functional,
    3. No such system is available,
    4. Such system is available but ineffective.
  4. The project appraisal system provides for consultation with
    1. No outside bodies
    2. Disciplines such as finance, technical, planning and legal,
    3. Disciplines such as finance, technical, planning and legal and outside bodies
    4. None of the above.
  5. The need for appraisal of project is verified by
    1. Persons who are in relation to the need
    2. Other persons who are not in relation to the need,
    3. Both (A) and (B),
    4. Neither (A) and (B).
  6. An approved list of contractors will be made by admitting them in the list by
    1. Giving notice/advt in local newspapers,
    2. Giving notice/advt in local newspapers with time limit
    3. No such notice/advt is required,
    4. None of the above.
  7. The financial appraisals of contractors include
    1. Examination of Finance a/cs of the co. for last 2 years
    2. Examination of Finance a/cs of the co. for last 2 years which are published
    3. Examination of Finance a/cs of the co. for last 3 years which are published
    4. Examination of Finance a/cs of the co. for last 3 years
  8. The appraisal of list of contractors will include
    1. No such appraisals
    2. Financial appraisals
    3. Financial and Technical appraisals
    4. Legal, Financial and Technical appraisals.
  9. Technical appraisals include,
    1. Particulars of recent contracts completed by contractor including their value and nature,
    2. Particulars of recent contracts completed by contractor,
    3. Particulars of recent contracts completed by contractor including contracts which are still in progress,
    4. None of the above.
  10. The proper selection of contractors is by
    1. Open Tender
    2. Competitive
    3. Selective, restrictive and negotiated
    4. All the above.
  11. An exemption procedure of selection of contractor in an emergency and single source of supply does exist in a Company.
    1. True
    2. False
  12. Final selection of a contractor is based on
    1. Technical appraisal by authorized authority
    2. Financial appraisal by authorized authority
    3. Both (A) and (B)
    4. None.
  13. All tender envelopes/forms received by the organization should be endorsed by authorized staff,
    1. With date
    2. With date and time
    3. Just endorsement
    4. Not required.
  14. Tender envelopes can be denied acceptance due to late submission
    1. True
    2. False
  15. All tender envelopes with the authorized officers can be opened by officers who have initiated tender process.
    1. True
    2. False
  16. Tender envelopes can be opened in the presence of at least 2 officers from different disciplines other than officers who have initiated such process.
    1. True
    2. False
  17. Any modifications of tender conditions/review of conditions are permissible subsequent to initiation of tender process, before closing tender process.
    1. True
    2. False
  18. Any Bond/Performance Bond(Surety) is to be received by the organization any time before closing time of receipt of Tender document.
    1. True
    2. False
  19. Under Stage B –Currency of Contract, Engineers have to send Project Report.
    1. True
    2. False
  20. A project Controller officially sends Contract Report.
    1. True
    2. False
  21. A contract report is sent by
    1. Contractor
    2. Legal consultant
    3. Engineer
    4. Project controller
  22. A contract report includes among other things,
    1. Contractual claims which are accepted
    2. Contractual claims which are not accepted
    3. Contractual claims which are accepted & value ascertained
    4. Contractual claims which are accepted and value not ascertained.
  23. A project report by the engineer shall report expenditure to date and expected final cost compared with original estimated cost of the project.
    1. True
    2. False
  24. Quantities shown in the statement by the contractor should be supported by on site measurement records.
    1. True
    2. False
  25. Retention of sum, can be effected by the organization, without any mention in the terms & conditions of contract.
    1. True
    2. False
  26. Inclusion of elements and proportions of work attributable to price indices shall form part of tender document.
    1. True
    2. False
  27. Any variations in work can be issued by persons who are not authorised so, under the contract.
    1. True
    2. False
  28. Engineer has to inform the organization on a daily basis of the net effect of variations on cost of works.
    1. True
    2. False
  29. Day work sheets endorsed to identify the variation to which they refer are signed by engineer’s representative and are sent to organization with supporting documents at each monthly valuation.
    1. True
    2. False
  30. Any claim for a rate higher than one notified by the engineer which is properly substantiated by the engineer is permissible.
    1. True
    2. False
  31. Under stage-c final contract, all measured items of work need to be re-measured on completion and are supported by site measurements record.
    1. True
    2. False
  32. In determining final amount payable it is necessary for the authority to make allowances for previous payments under same item of expenditure, tax matters, deletion of prime cost items, provisional sums and contingency items not used.
    1. True
    2. False
  33. Liquidated damages should not be recovered from the contractor, which represent ‘genuine pre-estimate of loss’.
    1. True
    2. False
  34. Payment of liquidated damages shall also carry interest.
    1. True
    2. False
  35. On termination of contract, state of work assessed may or may not include value of work done by the contractor up to forfeiture, estimated cost of remedial work at current rates and estimated cost of unfinished work as per contract.
    1. True
    2. False
  36. All extra cost involved due to incompletion of work by contractor, on termination of contract, need not be recovered from defaulting contractor
    1. True
    2. False

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