Q8 Question : As a buyer, you recently conducted a audit of your seller to determine weaknesses in the seller`s processes that need to be corrected. You want to document the results of your buyer audit, and the communication you had with the seller. This should be done using:

1. Performance Reports

2. Correspondence

3. Contract Documentation

4. Procurement Audits

A very good question.

Correct Choice: 2

Justification: Correspondence: Contract Terms and conditions often require written documentation of certain aspects of the buyer/seller communications, such as warnings of unsatisfactory performance and contract changes or clarifications. This can include the reported results of buyer audits and inspections that indicate weaknesses that the seller needs to correct.

Although Performance Reports & Contract Documentation might seem something like the best choice but they dont emphasize much on warnings of unsatisfactory performance the way correspondance does.

Reference: PMBOK 4th Edition , Page Number: 340

NOT Procurement Audits because it means Once you’ve closed out the contract, you go over everything that happened on the project to figure out the lessons learned and look for anything that went right or wrong. So the contract is not closed it is still under process.

NOT Performance Reports because Performance reports are also used by your project’s sponsor and stakeholders, who are very interested in whether or not your project is on track.

NOT Contract Documentation because its a part of the Procruement file which goes into your Org Proccess Assets.