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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 # 21

A single audit report will include an opinion or disclaimer of opinion that the financial statements are

Options:

A.  

free from fraud.

B.  

fairly presented in accordance with GAAP.

C.  

fairly presented in accordance with GAS

B.  

D.  

fairly presented in accordance with GAO.

Discussion 0
Question # 22

Government performance measurement promotes

Options:

A.  

responsibility.

B.  

profitability.

C.  

accountability.

D.  

cash availability.

Discussion 0
Question # 23

In defining the audit objectives of a performance audit, auditors should evaluate whether the audited entity has

Options:

A.  

updated its vision and strategic mission statements.

B.  

corrective actions to address prior findings and recommendations.

C.  

updated its financial reports’ MD&

A.  

D.  

internal controls in place.

Discussion 0
Question # 24

As a way to ensure fiduciary responsiblity, a government entity should include which of the following in its investment

policy?

Options:

A.  

prices and performance of its investment securities

B.  

permissible and non-permissible investment securities

C.  

historical allocations of investment securities

D.  

key and non-key investment security controls

Discussion 0
Question # 25

The basic steps in fraud audits include all of the following EXCEPT

Options:

A.  

consulting legal counsel.

B.  

reporting the results.

C.  

follow-up on control weaknesses.

D.  

considering political ramifications.

Discussion 0
Question # 26

If a CGFM wants to utilize data on population growth, housing and employment to estimate sales tax revenue, the CGFM should use

Options:

A.  

a regression analysis.

B.  

a cash flow analysis.

C.  

a payback analysis.

D.  

flow charting.

Discussion 0
Question # 27

Government entity SEA reporting provides users of general purpose financial reports with an

Options:

A.  

evaluation of the effects of changes in public policy.

B.  

assessment of financial condition and results of operations.

C.  

assessment of the accountability of the public administrators.

D.  

evaluation of the efficiency and effectiveness of governmental programs.

Discussion 0
Question # 28

When considering materiality during the planning phase for the field work for a financial audit, the dollar threshold for materiality is determined by the

Options:

A.  

auditor.

B.  

auditee.

C.  

auditor in consultation with the auditee.

D.  

audit committee.

Discussion 0
Question # 29

A key element in coputer-assisted audit techniques is

Options:

A.  

writing the system audit program.

B.  

verifying internal controls.

C.  

obtaining appropriate data.

D.  

purchasing data mining software.

Discussion 0
Question # 30

A state transfers cagh to a broker and the broker transfers securities to the state, promising to repay the cash plus

interest in exchange for the return of the same securities. This transaction is an example of

Options:

A.  

an arbitrage agreement.

B.  

a repurchase agreement.

C.  

a mutual buy-sell agreement.

D.  

a reverse repurchase agreement.

Discussion 0
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