CBA Quality Assurance & Compliance 2

Question 1

Which internal control framework is most widely used by U.S. federal agencies to evaluate the adequacy of financial management controls?

Accepted Answer

COSO Internal Control Framework

Answer

The COSO Internal Control – Integrated Framework is the standard referenced by OMB Circular A-123 for federal agencies' internal control assessment.

Question 2

A budget analyst discovers that obligations recorded in the financial system exceed apportioned amounts. What is the most immediate required action?

Accepted Answer

Report the potential Antideficiency Act violation to agency leadership

Answer

Exceeding apportioned amounts constitutes a potential Antideficiency Act violation that must be reported up the chain of command and ultimately to the President and Congress.

Question 3

What does the term 'management representation letter' refer to in the context of federal financial audits?

Accepted Answer

A letter from the CFO certifying the accuracy of financial statements to auditors

Answer

A management representation letter is signed by agency management (typically the CFO) acknowledging responsibility for the financial statements and affirming their accuracy to auditors.

Question 4

Under the Chief Financial Officers Act of 1990, which agencies are required to produce audited financial statements annually?

Accepted Answer

All 24 CFO Act agencies

Answer

The CFO Act designated 24 major federal departments and agencies that must produce annual audited financial statements.

Question 5

Which type of audit opinion indicates that financial statements are presented fairly in all material respects in conformity with GAAP?

Accepted Answer

Unmodified (clean) opinion

Answer

An unmodified or 'clean' opinion means auditors found the financial statements to be fairly presented in all material respects in accordance with applicable accounting standards.

(CBA) Certified Budget Analyst Practice Test

(CBA) Certified Budget Analyst Practice Test

CBA Quality Assurance & Compliance 2