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AGA Certified Government Financial Manager (CGFM) Sample Questions (Q57-Q62):

NEW QUESTION # 57
Entity management's appointment of a senior official to ensure the resolution of audit recommendations is a demonstration of management's

A. support for the audit process.
B. agreement with the audit findings.
C. disagreement with the audit findings.
D. delegation of authority.

Answer: A

Explanation:
* Management's Role in Resolving Audit Recommendations:
* By appointing a senior official to oversee the resolution of audit recommendations, management demonstrates itscommitment and supportfor the audit process.
* This action indicates a proactive approach to addressing findings and improving operations.
* Explanation of Answer Choices:
* A. Agreement with the audit findings: While this may indicate agreement, appointing a senior official is more about ensuring action is taken rather than expressing agreement.
* B. Disagreement with the audit findings: Incorrect. Appointing a senior official is a constructive step, not an indication of disagreement.
* C. Delegation of authority: Incorrect. Delegation is involved, but the key point is the demonstration of management's support for addressing audit findings.
* D. Support for the audit process: Correct. This action underscores management's commitment to resolving audit findings and improving accountability.
References:
* GAO,Standards for Internal Control in the Federal Government (Green Book).
* OMB Circular A-50,Audit Follow-Up.

NEW QUESTION # 58
Perils, losses, property, source of liability, and people, Indemnity, Exclusions, Definitions and conditions are:

A. None of these
B. Insuring agreements
C. Insurance policies
D. Insurance declarations

Answer: B

NEW QUESTION # 59
Initially Line item budgets were used by the local governments but afterwards more reformed practices has taken its place and grouped its purpose. Those refined and more manageable categories are all EXCEPT:

A. Loans
B. Supplies
C. Salaries
D. Equipment

Answer: A

NEW QUESTION # 60
Which of the following is NOT included in RFPs (Request for proposals) regarding audit?

A. Services furnished to the Auditor
B. Compensations and Terms of payment
C. Scope of work
D. Selection Criteria

Answer: D

NEW QUESTION # 61
The internal control structure is designed to assist managers in:

A. achieving agency program objectives and ensuring that functions are efficiently and effectively performed.
B. ensuring that physical security controls prevent unauthorized individuals from accessing sensitive information.
C. guaranteeing the success of an organization's program and preventing fraud, waste and mismanagement of resources.
D. preparing consistent financial statements in accordance with applicable standards.

Answer: A

NEW QUESTION # 62
......

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