Question 1 of 60.

Which action by a staff member increases the potential for fraud?

Assigning computer permissions to team members only
Making expensive purchases beyond what they can afford with their income level.
Obtaining a bid from company owned by the government
Hiring a third-party to audit payment transactions

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Question 2 of 60.
Which of the following examples illustrates competitive procurement?
A rental company offers a procurement officer two sizes of tents to rent
A rental company provides two procurement officers with different pricing for the same style of tent
A rental company provides a procurement officer different pricing for two styles of tents
A procurement officer obtains price quotes for renting tents from three rental companies

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Question 3 of 60.
In a Request for Proposal (RFP), where would you find information related to tasks, activities,
responsibilities, and deliverables?
Scope of Works (SOW)
Technical specifications
Note to File
Declaration of Impartiality

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Question 4 of 60.
Which action will help an organization ensure a more transparent procurement process?
Establishing a feedback and complaints mechanism for staff, suppliers, and the community.
Establishing procedures that ensure no one is prevented from obtaining their supplies
Defining clear expectations for its distribution staff
Conducting audits of policies and procedures to ensure they meet applicable laws

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Question 5 of 60.
At which stage does an organization officially take ownership of ordered goods?
Receipt
Inspection
Acceptance
Rejection

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Question 6 of 60.
Which situation represents a conflict of interest?
Vehicle manager monitoring fuel usage and purchasing fuel
Payroll manager approves employee cheques/checks and the Chief Executive Officer signs them
Third-party auditor conducting monthly reviews of purchasing contracts
Procurement officer and a potential supplier serving on the same nonprofit board
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Question 7 of 60.
What should be done if the quantity of goods received is less than what was ordered?
All goods must be shipped back to the supplier
Pay for only the items received after the contract has been adjusted
Ensure subcontractors are compensated for completed work
Ensure goods/service are approved by a logistics coordinator

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Question 8 of 60.
How should an organization’s procurement manager respond to a request for purchasing
prescribed pharmaceutical items?
Request management have a special place to store such pharmaceutical items
Explain that the request is denied as the item may lead to corruption activities
Ask the requestor to check if such procurement may need special donor/organizational approval

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Question 9 of 60.
A warehouse manager submits a purchase request for spare tires for a forklift. What role is this
in the procurement process?
Originator
Budget holder
Finance manager
Operations manager

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Question 10 of 60.
Which of the following situations will require a consultant contract?
Training sessions conducted by a security expert
Obtaining office space for a 12-month period
Purchasing a dozen portable water pumps
Purchasing fuel from a local supplier for company trucks

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Question 11 of 60.
A humanitarian organization needs to purchase blankets for a community devastated by
flooding. It obtains pricing from both a regional and international supplier. It selects the contract
of the regional supplier. This is an example of which procurement principle?
Supporting the local economy
Sustaining the environment
Obtaining the best value
Complying with laws

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Question 12 of 60.
In general, for high value procurement the selection committees are assigned the responsibility
of selecting the supplier/service providers. However, there are instances when committee
members may not have the entire knowledge to make the supplier selection. What action should
the committee take?
Just make the selection decision using their current knowledge
Consult a technical expert to provide support for making the selection
Identify one supplier to explain technical details on all bids
Cancel the procurement and advise the program to procure something less complicated

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Question 13 of 60.
Which responsibility is associated with the role of budget holder?
Submitting an invoice for payment
Requesting the purchase of a specific item
Obtaining bids from approved suppliers
Verifying a purchase request is permitted

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Question 14 of 60.
A supplier agrees to reimburse the organization 10% of the total contract cost for any deliverable
date exceeded by one week. Where in a contract would you find this specification?
Bid guarantee
Change order
Code of Ethics
Penalty clause

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Question 15 of 60.
What type of contract is mostly likely used to buy three desktop computers and a printer?
Supply
Purchase Order
Framework/Preferred Supplier Agreement
Rental/Leasing

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Question 16 of 60.
What is the purpose of procurement thresholds?
Establish a series of organizational detective controls
Establish the acquisition method for differently priced goods
Establish a series of organizational preventative controls
Establish the maximum amount an organization can spend on certain goods

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Question 17 of 60.
What is a performance bond?
Payment made by an organization to cover a supplier’s up-front expenses
Payment made in installments for goods/services provided at various stages
Refundable payment/guarantee made by a supplier as a promise of quality/completion
Financial sanction for failing to carry out the terms of a contract

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Question 18 of 60.
A staff member verifying the delivery contents against the delivery manifest is an example of
what specific quality control procedure?
Check and balances
Physical verification
Segregation of duties
Standardized documents

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Question 19 of 60.
Bidders agree to pay 10% of the estimated contract amount for failing to enter into the contract.
Where in a contract would you find this specification?
Penalty clause
Bid guarantee
Change order
Code of Ethics

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Question 20 of 60.
Which of the following illustrates Lead Time?
April 1st - Purchase request approved / May 31st - Product delivered
April 1st - Purchase request approved / April 28th – Purchase agreement signed
April 28th - Purchase agreement signed / June 1st – Estimated delivery date

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Question 21 of 60.
Which procurement method does NOT require a purchase request form (PR)?
Direct Purchase
Competitive Bidding
Open Tender (Local)
Open Tender (International)

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Question 22 of 60.
A supplier signed a contract with your organization to deliver some food items by June 15th.
However, on June 13th, the supplier informed the organization that delivery would be delayed by
two weeks. What realistic immediate action should be taken in this situation?
The supplier makes the delivery whenever the challenges are resolved
We cancel the contract and find a new supplier
Discuss the options available within the contract signed
We blacklist the supplier on unsuccessful performance

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Question 23 of 60.
A humanitarian organization contracted a local automotive repair shop to perform maintenance
on its cars for the duration of their stay. This is an example of which type of contract?
Supply
Purchase Order
Framework/Preferred Master Supplier Agreement
Rental/Leasing

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Question 24 of 60.
Investigating the quantity and quality of what the local wood suppliers have in stock is an
example of which part of the procurement process?
Verifying the suitability of suppliers providing goods
Verifying the cost and availability of required goods
Estimating the lead time of potential suppliers
Determining the resources needed to manage the purchase

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Question 25 of 60.
Which role in the procurement process is responsible for ensuring that local purchases are in
compliance with country tax laws?
Budget holder
Finance manager
Operations manager
Procurement manager

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Question 26 of 60.
What is the key step in an inventory check?
Compare the items received to the records on Goods Received Note
Compare the physically available stock to the stock records maintained
Verify the damaged and loss items recorded
Verify the accuracy of all warehouse records

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Question 27 of 60.
What are the four key work activities in warehouse operation?
Purchasing, storage, issuing, distribution
Goods receipt, storage, picking, dispatch
Manufacturing, purchasing, delivery, receipt
Assembling, repacking, issuing, storage

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Question 28 of 60.
What is the primary purpose of a Goods Received Note (GRN)?
Validate the arrival of an organization’s purchase order
Record the information of stock issuances
Confirm the arrival of purchased materials
Facilitate supplier payment on stock purchased

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Question 29 of 60.
What are the three most important criteria for warehousing?
Goods are protected, kept clean and on shelves
Goods are protected, kept in separate bins, and out of direct light
Goods are documented, protected, and accessible
Goods are documented, kept in separate bins, and regularly checked

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Question 30 of 60.
Which one of the following can be a constraint for warehousing and storage in fragile/conflict
sensitive areas?
Damage through flood
Sanitary conditions are not available
Seizure of inventory by armed groups
Good access to the facility

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Question 31 of 60.
Which of the following items can be stored outside?
Medicine
Tires
Blankets
Food

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Question 32 of 60.
On which document would you record damage to items due to insects or rodents?
Stock Request Form
Warehouse Register
Goods Received Note
Daily Log Book

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Question 33 of 60.
What percentage of space in a warehouse should be allotted for the storage of material?
100%
70%
50%
30%

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Question 34 of 60.
To effectively store and turn-over warehouse materials, which type of inventory should be
cleared first?
Damaged
Largest
Newest
Oldest

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Question 35 of 60.
A medical aid organization is planning to help people of a country devastated by war. What
should be the primary consideration for determining the location of its medical supply
warehouse?
Security for stock and personnel
Availability of a well-maintained access road
Availability of vehicles such as forklifts
Current rental costs of existing buildings

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Question 36 of 60.
What is the maximum height of the stacking items or boxes?
2.5m
3m
4m
4.5m

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Question 37 of 60.
What words should be written on the Goods Received Note prepared for items being sent back
to the warehouse from field locations, projects sites, or beneficiaries?
Reusable Goods
Restocked Goods
Recovered Goods
Returned Goods

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Question 38 of 60.
What should be the minimum and ideal space between different groups or stacks of materials?
0.5m
1m
2m
2.5m

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Question 39 of 60.
What specific storage information may be obtained on an item’s container or box?
Whether items must be placed on shelves or pallets
The distance items must be from the facility’s ceiling
Maximum space required between it and different items
Maximum number of items that can be stacked

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Question 40 of 60.
What is recorded on a Stock Card?
Name of the stock item’s manufacturer
Information of stock issuances from the warehouse
Movement and balance of individual stock items in the warehouse
Amount of stock available in the warehouse

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Question 41 of 60.
Which of the following vehicle conditions is necessary for emergency preparedness?
Keeping vehicles locked in all situations
Recording all journeys in the vehicle log
Parking vehicles so they face the direction of travel
Assigning a specific driver to each vehicle

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Question 42 of 60.
Which fuel storage practice will mitigate vehicle damage?
Using specifically designed tanks
Shading tanks/barrels from direct sunlight
Displaying proper safety signage
Keeping petrol and diesel labeled and separated

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Question 43 of 60.
Which of the following vehicle scenarios indicate the potential for fraud and corruption?
Driver receiving several excessive speed violations
Fuel station receipt and vehicle log showing same amount
Driver discovered to have an expired license
Log showing disproportionate mileage

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Question 44 of 60.
An organization’s driver accidentally strikes a child that ran out into the street. The driver
immediately stops to verify the extent of the child’s injuries. A crowd of witnesses immediately
begin yelling at the driver? What action should the organization’s driver take?
Move to a safe location and notify the authorities
Explain that the child could not been seen
Apologize for hitting the child with the car
Prepare a detailed incident report

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Question 45 of 60.
What is the formula for calculating a vehicle’s Total Cost of Ownership (TCO)?
Operating Costs + Disposal Value - Acquisition Cost
Acquisition Cost + Disposal Value – Operating Costs
Acquisition Cost + Operating Costs – Disposal Value
Acquisition Cost - Operating Costs + Disposal Value
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Question 46 of 60.
Which of the following actions should you AVOID doing if involved in a motor vehicle collision?
Directing traffic on busy roadways
Seeking medical attention for local individuals
Informing senior management of the accident
Admitting liability for the accident

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Question 47 of 60.
Which of the following items is NOT necessary to keep in a vehicle?
Spare tire
First aid kit
Blank incident reports
Vehicle rental request

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Question 48 of 60.
Which situation provides justification for renting vehicles rather than purchasing them?
Use in rocky and hilly terrain
High incidence of stolen vehicles
Excessive heat and drought conditions
Long-term duration of use

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Question 49 of 60.
On which type of vehicle use will organizations typically place the most restrictions?
After Hours
Personal
Work Related

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Question 50 of 60.
Which of the following is a reason to schedule the use of vehicles?
Ensure transport needs are managed efficiently
Improve driver effectiveness
Reduce speed violations
Determine a need for training

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Asset Management
Question 51 of 60.
What is the purpose of having an asset register?
Ensure proper recording and tracking
Complete the purchase process
Make payments to suppliers
Record general ledger entries

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Question 52 of 60.
What is the purpose of an asset tag?
Inform staff that all items are tracked
Identify items needing repair and/or maintenance
Identify and link items to documentation records
Notify transporters that items should not be removed in transit

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Question 53 of 60.
What are the three key elements you need to consider when developing the definition of asset
for your organization?
Non-consumable, acquisition cost, and useful life
Manufacturing year, current market value, and duration of program
List of accessories, size, and value of the item

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Question 54 of 60.
What is a donor asset?
An asset stored at donor’s office for safety/security
An asset purchased using organizational funds
An asset the organization is accountable to the donor for disposing
An asset given to beneficiaries by the local authority

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Question 55 of 60.
What is the system of asset verification commonly used by humanitarian organizations?
Daily, weekly, and monthly asset verification
Lost or damaged asset verification
Verification of recently purchased assets
Fiscal year end, grant end, and random asset verification

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Question 56 of 60.
Who should be responsible for the issuance of an asset?
Finance Officer
Designated/authorized person
Procurement Officer
Office Assistant

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Question 57 of 60.
Which of the following is a main internal control of fixed assets?
Purchasing of assets
Repair and maintenance of assets
Maintaining an asset register
Always storing assets in a warehouse

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Question 58 of 60.
Zaid chose to have a staff member transport a laptop computer from the organization’s main
office to one of its field offices. What document should he use to manage this process?
Printed photo of the asset
Asset movement form
Goods Received Note
Purchase order

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Question 59 of 60.
What is the first step an organization should take before auctioning assets?
Notify the public of the auction
Fill out an Asset Disposal Form
Dispose of the items Asset Tags
Reclassify the assets as Auctioned

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Question 60 of 60.
ABC Foundation lost a power generator due to an acceleration of conflict in one of its program
locations. How should the asset controller manage this situation?
Make arrangements to purchase a replacement item
Report, document, request approval for disposing the item
Remove the item from the asset register
Do not inform donors and authorities

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