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CGFM Practice Exam Questions and Answers

CGFM Certified Government Financial Manager

Last Update 2 months ago
Total Questions : 115

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Question # 1

According to the GAO, internal control is a process used by management to

Options:

A.  

help an entity achieve its objectives.

B.  

design an ERM system.

C.  

set the tone at the top.

D.  

develop a strategic plan.

Discussion 0
Question # 2

Simplified acquisition processes assist an agency by

Options:

A.  

maintaining the competitive bid requirement and allowing credit card purchases.

B.  

providing access to bulk purchase discounts and reducing administrative costs.

C.  

increasing the number of requisitions processed.

D.  

reducing acquisition staff and managerial oversight.

Discussion 0
Question # 3

An evaluation of anggntity’s single year financial statements would use which of the following analyses?

Options:

A.  

comparative

B.  

horizontal

C.  

trend

D.  

vertical

Discussion 0
Question # 4

The Parking Fund for a government entity has the following information in its Statement of Net Position. Calculate the current ratio.

Total current assets$1,320

Total non-current assets$8,100

Total assets$9,420

Total current liabilities$ 810

Total non-current liabilities$ 360

Total liabilities$1,170

Total net position$8,250

Options:

A.  

0.61

B.  

0.98

C.  

1.14

D.  

1.63

Discussion 0
Question # 5

A key objective of a performance audit is

Options:

A.  

providing an opinion on the entity's financial statement.

B.  

assessing program effectiveness, economy and efficiency.

C.  

providing an opinion on a subject matter that is the responsibility of another party.

D.  

issuing a report of findings based upon an agreed-upon procedure.

Discussion 0
Question # 6

A performance measurement that is measured the same way over several periods is

А.timely.

B.  

relevant.

C.  

reliable.

D.  

consistent.

Options:

Discussion 0
Question # 7

For financial audits, generally accepted auditing standards require that auditors accomplish all of the following tasks EXCEPT

Options:

A.  

adequately plan the work.

B.  

make the audit report available to the public.

C.  

obtain sufficient appropriate audit evidence.

D.  

supervise any assistants.

Discussion 0
Question # 8

Business process re-engineering typically addresses all of the following EXCEPT the

Options:

A.  

key processes.

B.  

human environment.

C.  

organizational mission.

D.  

technical environment.

Discussion 0
Question # 9

In the context of audit risk, which type of risk is primarily influenced by the effectiveness of an organization's internal

controls?

Options:

A.  

inherent risk

B.  

control risk

C.  

detection risk

D.  

audit risk

Discussion 0
Question # 10

Under government fuditing standards, auditors performing financial statement audits must

Options:

A.  

design tests to assess compliance with laws, regulations, contracts and grant agreements.

B.  

identify violations of laws which could be punishable by monetary penalties.

C.  

identify expenditures that exceed the related obligations.

D.  

design tests to detect fraud, waste and abuse.

Discussion 0
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