Free Examination 3: Governmental Financial Management and Control (GFMC) Practice Questions

A.  

performance audits

B.  

compliance audits

C.  

financial statement audits

D.  

forensic audits

A.  

internal office processing delays occurring prior to making deposits.

B.  

mail and check-clearing time.

C.  

delays in the availability of funds after transaction initiation.

D.  

the writing of checks against insufficient funds.

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

A.  

The auditee determines what is material based on their understanding of how the financial statements

may be used by third parties.

B.  

The auditor establishes materiality based on whether a misstatement would influence the judgement

made by a reasonable user of the financial statements.

C.  

The entity's main provider of resources typically sets materiality levels for financial reporting.

D.  

The auditor sets a standard percentage for all entities by transaction class.