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CGFM Practice Questions

CGFM Certified Government Financial Manager

Last Update 4 days ago
Total Questions : 115

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Question # 11

Management shoulg consider the cost of internal controls in relationship to

Options:

A.  

the available budget.

B.  

inherent risks.

C.  

benefits provided.

D.  

risk of collusion.

Discussion 0
Question # 12

Which of the following statements from an audit finding is the condition?

Options:

A.  

We identified multiple credit card purchases without receipts to support them.

B.  

Government policy requires a cardholder to submit receipts for all purchases.

C.  

Finance Department personnel did not regularly review purchases to ensure compliance.

D.  

We recommend that the government implements a timely review of all credit card purchases.

Discussion 0
Question # 13

An agency uses pavement rating scores as a key indicator for a street maintenance program. If the legislature provided the agency with

an additional $5 millionjthe new resources should be allocated based upon

Options:

A.  

the number of intersections.

B.  

historical budgeted amounts.

C.  

lane miles rated as acceptable by the citizens.

D.  

lane miles with unmet needs.

Discussion 0
Question # 14

Which of the following acts requires federal agencies to pay interest to state government funds for entitlements that

are not provided in a timely manner?

Options:

A.  

Debt Collection Improvement Act

B.  

CFO Act

C.  

Accountability for Tax Dollars Act

D.  

Cash Management Improvement Act

Discussion 0
Question # 15

A material weakness in internal control over financial reporting is defined as a deficiency that

Options:

A.  

results in a misstatement to the basic financial statements.

B.  

results in a material misstatement in other accompanying financial information.

C.  

did not allow management to perform their assigned responsibility to prevent, detect and correct misstatements in a timelymanner.

D.  

creates a reasonable possibility of a material misstatement to the financial statements that will not be detected in a timely

manner.

Discussion 0
Question # 16

An agency benefit program allows employees who commute by public transit up to 10 free taxi trips home per

calendar year. Employees can use the program for personal or family health emergencies. The most appropriate

method to check for abuse of this program is

Options:

A.  

using program data to look for instances of individuals using the service more than 10 times per year.

B.  

using geographic information system data to determine if the destination addresses were hospitals or

clinics.

C.  

using personal data to determine if the destination address matches the employees home address.

D.  

requesting records from a random sample of employees to verify they used transit on the day they

used the taxi services.

Discussion 0
Question # 17

Forensic accounting includes performance of all of the following tasks EXCEPT

Options:

A.  

auditing accounting records to prove or disprove fraud.

B.  

preventing fraud.

C.  

interviewing all related parties to fraud.

D.  

serving as an expert witness.

Discussion 0
Question # 18

A purchasing officer is asked to select a vendor to provide office supplies. Which of the following vendors should beselected?

Options:

A.  

the mayor's high school classmate’s company with the lowest qualified bid

B.  

the second lowest priced qualified bidder

C.  

the third lowest priced qualified bidder who is pending state disbarment

D.  

the highest priced qualified bidder with the highest quality products

Discussion 0
Question # 19

An employee is set to receive a lumpsum payment of $500,000 in ten years. The agency uses an opportunity rate of 12% for its investments. If inflation is 3%, how much must the agency invest today to cover the future lumpsum payment?

Options:

A.  

$160,986

B.  

$186,023

C.  

$440,000

D.  

$485,000

Discussion 0
Question # 20

Who is responsible for resolving single audit findings?

Options:

A.  

the awarding agency

B.  

the recipient agency

C.  

the audit committee

D.  

the external auditors

Discussion 0
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