Procurement
Question 1 of 60.
What should be done if the quantity of goods received is less than what was ordered?
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All goods must be shipped back to the supplier.
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Ensure goods/service are approved by a logistics coordinator.
Pay for only the items received after the contract has been adjusted.
Ensure subcontractors are compensated for completed work
Question 2 of 60.
Which action by a staff member increases the potential for fraud?
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Assigning computer permissions to team members only
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Hiring a third-party to audit payment transactions.
Making expensive purchases beyond what they can afford with their income
level. Obtaining a bid from company owned by the government.
Question 3 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.
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.
Question 5 of 60.
In a Request for Proposal (RFP), where would you find information related to tasks,
activities, responsibilities, and deliverables?
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Scope of Works (SOW)
Technical specifications
Note to File
Declaration of Impartiality
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.
Question 7 of 60.
At which stage does an organization officially take ownership of ordered goods?
Receipt
Inspection
Acceptance
Rejection
Question 8 of 60.
What is the purpose of a Note to File (NTF)?
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Provide the scope of work a supplier must perform.
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Identify lots that may be grouped to reduce individual purchases.
Explain unintentional deviation from the organizational procurement process.
List the technical specifications of needed items.
Question 9 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
Question 10 of 60.
What should be done with rejected items that a supplier cannot pick-up immediately?
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Ship the items back that day.
Leave the items where they are.
Place the items in a separate area.
Question 11 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
Question 12 of 60.
A warehouse manager submits a purchase request for spare tires for a forklift. What
role is this in the procurement process?
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Originator
Budget holder
Finance manager
Operations manager
Question 13 of 60.
What is a performance bond?
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Payment made by an organization to cover a supplier's up-front expenses.
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Financial sanction for failing to carry out the terms of a contract.
Payment made in installments for goods/services provided at various stages.
Refundable payment/guarantee made by a supplier as a promise of
quality/completion.
Question 14 of 60.
The time it took for authorized personnel to approve a purchase request and then to
sign the contract with the supplier was 30 days. This is an example of which type of
time.
Lead Time
Time to Award
Supplier Delivery Time
Question 15 of 60.
Which document provides potential suppliers with information on your organization's
bidding process?
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Supporting Document Matrix (SDM)
Request for Quotations (RFQ)
Purchase Request Form (PR)
Action Priority Matrix (APM)
Question 16 of 60.
Who is responsible to provide all details required about an item that needs to be
purchased?
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Finance Office
Originator (Requestor)
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Procurement Officer
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Supplier
Question 17 of 60.
Which documentation serves as evidence supporting the proposed quality of a
supplier's bid?
 Compare the catalog photos of pumps to photos of the installed pumps.
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Compare the catalog item numbers of the pumps to be installed
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Signed and dated purchase orders for the water pumps.
Signed and dated minutes from a meeting discussing the proposed bids.
Question 18 of 60.
What is the minimum number of voting individuals that can comprise a procurement
committee?
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2 staff from two different departments
3 staff from two different departments
3 staff from one department
5 staff from two different departments
Question 19 of 60.
A supplier estimates it will take a minimum of 60 days from the time the contract is
signed to fill the order. This is an example of which type of time?
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Lead Time
Time to Award
Supplier Delivery Time
Question 20 of 60.
How should an organization's procurement manager respond to a request for
purchasing prescribed pharmaceutical items?
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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.
Question 21 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
Question 22 of 60.
How often is it recommended to review available suppliers for Framework/Preferred
Master Supplier Agreements to ensure cost effectiveness?
Every month
Every 6 months
Every I years
Every 5 years
Question 23 of 60.
Which role in the procurement process is responsible for ensuring that local purchases
are in compliance with country tax laws?
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Budget holder
Finance manager
Operations manager
Procurement manager
Question 24 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
Question 25 of 60.
In general, who is responsible for coordinating contracts?
Community member
Procurement Officer
Warehouse Officer
Donor
Question 9 of 60.
Where should a person list the amount, type, and condition of items delivered by a
supplier?
Note to File (NTF)
Goods Received Note (GRN)
Service Completion Report (SRN)
Scope of Works (SOW)
Question 10 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.
Question 11 of 60.
Which situation represents a detective measurement/control?
Ensuring the amounts on a purchase request, purchase order, and invoice
are the same.
Implement a two-person system for determining a list of approved suppliers.
Require computer passwords to be stronger and changed quarterly.
Establish a policy that states procurement staff cannot be related to
suppliers.
Question 13 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.
Question 14 of 60.
Which evidence supports the satisfactory procurement of a specific medication to treat
bacterial infections?
Catalog listing the assorted items available for purchase.
Copies of an approved purchase order and delivery invoice
Signed and dated purchase order for the medication.
Photographs of the unopened delivery boxes
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
Question 16 of 60.
Why is it important to publicly announce the tender?
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Demonstrate transparency and attract more competitive potential bidders.
Inform communities about ongoing procurement activities
Encourage suppliers to read newspapers and access the internet.
Question 17 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
Question 18 of 60.
What is the minimum number of quotes or proposals required in Open Tender?
8
5
3
1
Question 20 of 60.
A purchase request lists the following required item: 2 Off-the-road (OTR), all-season
radial tires / size 17.5R25. This is an example of what?
Evaluation criteria
Payment terms
Scope of Works (SOW)
Technical specification
Question 22 of 60.
The educational program team has decided to build a two-story school building. What
is the most suitable way of communicating to procurement what is needed from a
supplier?
Provide verbal instruction to procurement team on the construction of school
building.
Provide few photos of a similar building and ask procurement to find a
contractor.
Provide procurement team, scope of work, approved bill of quantity and
drawings of the building.
Request procurement team to take part in building construction course:
Question 23 of 60.
Where in a contract would you stipulate that in the event of a war, all vehicle rental
service will be immediately suspended?
Claims
Product/technical specifications
Terms of payment
Termination
Warehousing
Question 26 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
Question 27 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
Question 28 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.
Question 29 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.
Question 30 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
Question 31 of 60.
What is the guideline for the proper rotation of stock?
Last in, first out
First in, last out
First in, first out
Question 32 of 60.
What should be the minimum and ideal space between different groups or stacks of
materials?
0.5m
1m
2m
2.5m
Question 33 of 60.
What is the maximum height of the stacking items or boxes?
2.5m
3m
4m
4.5m
Question 34 of 60.
What is the priority when disposing of stock?
Amount of stock in the warehouse
Status of the stock (damaged, spoiled, etc.)
Requirements from donor organizations
Country of Origin of the stock
Question 35 of 60.
Which statement indicates ideal stock management within a warehouse?
Excess stock must be available for urgent program need.
Sufficient stock is available to cover lead-time in replacement orders and
prevent stock-out.
Replacement orders should only be placed when the current stock is depleted.
Blame procurement officer when a stock-out situation occurs.
Question 36 of 60.
What is doughnut stacking?
Stacking goods to a dangerously high level
Stacking goods with a hole in the middle
Stacking goods in a circular pattern
Stacking goods of diverse types on top of each other
Question 37 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
Question 38 of 60.
Which of the following actions will best prevent insect/rodent infestation within a
warehouse?
Removing garbage on a regular basis
Having spare bags and boxes available
Recycling items when possible
Allowing only certain food and drinks inside
Question 39 of 60.
What should be done when a discrepancy is discovered while conducting an inventory
check?
Change the records where the discrepancy exists
Remove the excess items identified as a discrepancy.
Validate the discrepancy by checking records for mistakes and conducting a
recount.
Obtain enough stock when placing replenishment orders to off-set the
discrepancy.
Question 40 of 60.
To effectively store and turn-over warehouse materials, which type of inventory should
be cleared first?
Damaged
Largest
Newest
Oldest
Question 41 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.
Question 42 of 60.
What is the function of a warehouse daily register?
Record the staff working in the warehouse.
Record all activities within the warehouse.
Record vehicle movement to and from the warehouse
Record the inventory stored in a warehouse for audit purposes.
Question 43 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 Logbook
Question 44 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
Fleet Management
Question 45 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
Question 46 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
Question 47 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
Question 48 of 60.
Which of the following selection criteria is important for ensuring vehicle versatility
when operating in many countries?
Cost
Color
Dealer availability
Fuel type
Question 49 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
Question 50 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
Question 51 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
Question 52 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
Question 53 of 60.
You are involved in a collision while driving an organizational vehicle. One of the other
drivers has a severe head injury. What immediate action should you take?
Prepare an incident report
Notify your organization
Seek medical assistant
Direct traffic to slow down
Question 54 of 60.
Which of the following is a responsibility of a vehicle manager?
Replacing damaged or worn-out parts
Providing basic first-aid training
Arranging repairs for damaged vehicles
Purchasing vehicles for the organization's fleet
Question 55 of 60
Which of the following is an indicator of vehicle maintenance/repair corruption?
Replacement of parts according to the maintenance schedule
Need for repairs discovered during routine service
The same maintenance/repairs keep occurring regularly
Several insurance claims due to fleet accidents
Question 56 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
Question 57 of 60
What is a best practice for how long a vehicle log should be maintained?
One year
One month
One week
One day
Question 58 of 60
Which of the following travel scenarios could potentially create a safety and security
issue?
Carrying a car jack in the trunk Of your vehicle
Leaving a backpack on the passenger side seat of your vehicle
Using a cell phone to report an accident involving your vehicle
Placing copies of vehicle documents in the glove box
Question of 59 of 60
An organization discovers that a commercial vehicle workshop used replacement parts
not made by the vehicle's manufacturer. How can this have been prevented?
Avoid using service departments of vehicle rental companies
Note the specific vehicle parts in a service contract/task order
Conduct a daily vehicle inspection using a detailed checklist
Physically mark all premium vehicle parts prior to service
Asset Management
Question 60 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
Question 61 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
Question 62 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
Question 63 of 60.
Which of the following documents is suitable to provide reassurance that the recipient
(community group, other NGO, etc.) of donated items has received full responsibility
for them?
Partnership Agreement
Official certificate or letter of acceptance
Asset Register
Original specification for the asset
Question 64 of 60.
While performing a random asset verification, an asset controller discovers that a staff
member does not possess the item he was issued. What action should the asset
controller should take?
Dispose of the asset from the register
Contact the police
Inform the organization's
management
Purchase a replacement
Question 65 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
Question 66 of 60.
After a project officer receives her new laptop while on a field assignment, how should
she confirm its receipt with the local office?
Call the person that issued it
Text the person that issued it
Email the person that issued it
Skype the person that issued it
Question 67 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
Question 68 of 60.
Who should be responsible for the issuance of an asset?
Finance Officer
Designated/authorized person
Procurement Officer
Office Assistant
Question 69 of 60.
How should an error be indicated on a manually entered Asset Register?
Erase the error as much as possible
Cover the error using White-Out
Mark the error with a single line strike-through
Cover the error with dark ink
Question 70 of 60
Which of the following supporting documents is suitable to justify disposal of an item
that has been lost?
Copy of Asset Register details
Completed loss/damage report
Project report
Original estimate
Question 71 of 60
What are the key responsibilities of asset management?
Purchasing, donating, and selling
Registering, issuing, tracking, reporting, and disposing
Assembling, maintaining, and auctioning
Installing, repairing, and dismantling
Question 72 of 60
What type of asset is a computer purchased with private funds?
Donor asset
Organizational asset
Information technology asset
Question 73 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
Question 74 of 60
Which document would identify the individuals issuing, receiving, and transporting
organizationally owned laptop computers?
Asset Tag
Asset Register
Asset Movement Form
Asset Disposal Form