CBA Quality Assurance & Compliance 4

Question 1

Under GPRA Modernization Act of 2010, agencies are required to publish strategic plans, annual performance plans, and annual performance reports. Which entity reviews and approves agency priority goals?

Accepted Answer

The Office of Management and Budget (OMB)

Answer

OMB coordinates with agencies to establish Agency Priority Goals (APGs) and cross-agency priority goals, which are reviewed and approved as part of the GPRA Modernization Act implementation.

Question 2

Which audit standard requires federal auditors to consider an agency's compliance with laws and regulations as part of a financial statement audit?

Accepted Answer

Government Auditing Standards (Yellow Book)

Answer

Government Auditing Standards (GAS), commonly called the Yellow Book, requires federal auditors to consider compliance with laws and regulations that have a direct and material effect on financial statements.

Question 3

An agency's internal auditors identify a pattern of split purchases designed to avoid the simplified acquisition threshold. This most likely indicates:

Accepted Answer

Potential circumvention of competitive bidding requirements

Answer

Splitting purchases to stay below acquisition thresholds is a prohibited practice that circumvents competition requirements and represents a significant compliance violation.

Question 4

What is the primary distinction between a 'significant deficiency' and a 'material weakness' in internal controls?

Accepted Answer

A material weakness is more severe and poses a higher risk of material financial misstatement

Answer

A material weakness represents a more severe control deficiency than a significant deficiency, as it creates a reasonable possibility that a material misstatement will not be prevented or detected timely.

Question 5

When must an agency report an Antideficiency Act violation to the President and Congress?

Accepted Answer

Within 30 days of discovery

Answer

31 U.S.C. § 1351 requires agencies to report Antideficiency Act violations to the President and Congress within 30 days of discovering the violation.

(CBA) Certified Budget Analyst Practice Test

(CBA) Certified Budget Analyst Practice Test

CBA Quality Assurance & Compliance 4