CGFM Part 3 Exam

Question 1

A written investment policy should require that collateral be held

Answer 1

By an independent party

Question 2

Which information should be included in a government’s property management system

Answer 2

-Description
-Location of property
-Acquisition cost
-Replacement value

Question 3

An integrated financial management system is support by

Answer 3

a standard chart of accounts

Question 4

If a government entity has excess cash to invest, fulfilling its fiduciary responsibility requires it to invest prudently

Answer 4

ensuring that it makes informed investment decisions with no conflict of interest

Question 5

A local gov decides to reduce procurement administrative costs by purchasing a piece of equipment through the state-wide contract available, rather than going through regular in-house procurement channels to competitively seek a vendor. This is an example of a contract efficiency using

Answer 5

an inter-agency procurement instrument

Question 6

The Single Audit requires the auditor to issue

Answer 6

an opinion on compliance and a report on internal controls

Question 7

Reporting on internal control and compliance with provisions of laws, regulations, contracts and grants agreements is a requirement of an audit perform in accordance with

Answer 7

generally accepted government auditing standards reporting standards

Question 8

Under the AICPA’s SSAE, if an agency receives a separate opinion on its internal controls, the auditors performed

Answer 8

an examination

Question 9

The Single Audit Act of 1984 is intended to

Answer 9

promote cooperation between auditors

Question 10

The requirement that federal agencies implement a comprehensive program of performance measures comes from

Answer 10

GPRA

Question 11

Financial and non-financial performance measures are defined as quantitative or qualitative indicators of

Answer 11

inputs, outputs, outcomes, progress, results, achievement, effectiveness or efficiency

Question 12

How can a financial manager use performance measurement to drive performance improvement?

Answer 12

enable monitoring to assure that goods and services delivered achieve and desire results

Question 13

performance measurements are used in governments primarily to support all of the following tasks except to

Answer 13

shape internal controls

Question 14

Which of the following descriptions of performance measurement data would be considered ‘understandable’

Answer 14

The final report explains, but is not limited to, the significance of the performance measure and its relevance to the entity’s goals

Question 15

The two broad groupings of information system control are

Answer 15

general controls and application controls

Question 16

The assurance statement on internal controls over financial reporting required by CFO Act agencies appears in which of the following reports

Answer 16

PAR

Question 17

One of the primary steps in forensic analytics is

Answer 17

data preparation

Question 18

A state department is trying to determine if it will continue to perform reviews of patient data or outsource the activity to a third-party vendor. What is the first step the department should take in making this decision

Answer 18

determine the optimal process for completing patient data reviews, which maximizes efficiency and reduces cost

Question 19

which of the following serves as the foundation of the government’s solicitation for services

Answer 19

performance work statement

Question 20

A government financial manager would most likely use advanced data analytics to

Answer 20

improve performance

Question 21

the results of data mining

Answer 21

provide predictive data

Question 22

preparing a performance work statement is a step in which type of analysis

Answer 22

competitive sourcing analysis

Question 23

Financial and non-financial performance measures are defined as quantitative or qualitative indicators of

Answer 23

inputs, output, outcomes, progress, results, achievement, effectiveness and efficiency

Question 24

Performance measures are used to

Answer 24

inform the budget process

Question 25

Which performance measurement characteristic means measuring and reporting the same performance measures, in the same way, from period to period

Answer 25

consistent

Question 26

A 34,560 cost allocation per county resident for a stormwater management program would indicate which performance measure

Answer 26

Input measure

Question 27

A state’s department of agriculture tracks the following performance measure: 97 % of seed samples will be found to be in full compliance with federal standards is an example of

Answer 27

outcome measure

Question 28

Reporting of performance measures in financial reports under GASB is

Answer 28

Optional for all activities

Question 29

Which of the following best describes the order of steps in the risk management process?

Answer 29

establish the context, identify risk, analyze and evaluate, develop alternatives, respond to risks, monitor and review

Question 30

three basic requirements of the GPRA of 1993?

Answer 30

GPRA has three basic requirements: strategic plans, annual performance plans and program performance reports.

Question 31

Cloud computing services composed of some combination of private, public, and community cloud services, from different service providers, is described as

Answer 31

hybrid cloud

Question 32

The requirement to obtain an understanding of internal controls and perform tests of internal controls over federal award is part of the scope of the Single Audit Act as performed

Answer 32

On an organization wide basis

Question 33

When conducting a performance audit, both external and internal auditors have to follow

Answer 33

Generally Accepted Government Auditing Standards (GAGAS)

Question 34

When a state treasurer provides cooperative investing agreements for cities and counties to enhance their investment opportunities and operating efficiency, it is called

Answer 34

an external investment pool

Question 35

The assurance statement on internal controls over financial reporting required by CFO Act agencies appears in which of the following reports

Answer 35

PAR

Question 36

Properly planning the engagement and supervising the assistants is part of what standards for attestation engagement

Answer 36

Fieldwork

Question 37

The independent auditors report contains

Answer 37

acknowledgement of management’s responsibilities for internal controls