Certified Government Financial Manager (CGFM) (CGFM) Free Practice Test

Question 1

Which of the following is an example of an internal control weakness?

A. The contract department staff awards contracts and maintains a database for vendor information.

B. Management policy allows project managers to oversee controls of companies in which they have a material interest.

C. The budget department staff is responsible for preparing the budget and for reporting on budget cost variances.

D. The accounting department has one clerk prepare vendor payments and another clerk reconcile bank accounts.

Correct Answer: B

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Question 2

Which of the following includes the aggregate level and types of risks that the organization is willing to assume in order to achieve its Strategic objectives?

A. risk profile

B. risk and control evaluation matrix

C. risk register

D. risk and control assessment tool

Correct Answer: A

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Question 3

All of the following represent selection criteria used to make contract awards EXCEPT contractor

A. past performance records.

B. staff expertise.

C. union affiliations.

D. financial position.

Correct Answer: C

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Question 4

Under government fuditing standards, auditors performing financial statement audits must

A. design tests to detect fraud, waste and abuse.

B. identify expenditures that exceed the related obligations.

C. identify violations of laws which could be punishable by monetary penalties.

D. design tests to assess compliance with laws, regulations, contracts and grant agreements.

Correct Answer: D

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Question 5

What is the most fupdamental cash control?

A. use of automated systems

B. frequent reconciliation of bank accounts

C. analysis of cash reports

D. segregation of duties

Correct Answer: B

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Question 6

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

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

B. the third lowest priced qualified bidder who is pending state disbarment

C. the highest priced qualified bidder with the highest quality products

D. the second lowest priced qualified bidder

Correct Answer: A

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Question 7

An evaluation of anggntity's single year financial statements would use which of the following analyses?

A. vertical

B. horizontal

C. trend

D. comparative

Correct Answer: A

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AGA Certified Government Financial Manager (CGFM) (CGFM) Free Practice Test