Internal Controls and Fraud Detection in Government Flashcards
6 cards from real CGAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Internal Controls and Fraud Detection in Government flashcards as text
What is a 'ghost employee' fraud scheme?
Answer: Adding fictitious employees to the payroll to divert salary payments to the fraudster
A ghost employee scheme places fake or former employees on the payroll, causing the government to issue salary payments that the fraudster intercepts.
Which GAGAS principle requires auditors to communicate all significant deficiencies and material weaknesses identified during the audit?
Answer: Reporting requirements for internal control findings
GAGAS reporting requirements mandate that auditors communicate significant deficiencies and material weaknesses in internal control identified during the audit.
In the context of the Green Book, what are 'control activities'?
Answer: Policies and procedures that help ensure management directives are carried out and risks are mitigated
Control activities are the specific actions — authorizations, verifications, reconciliations, segregation of duties — that reduce the risk of errors and fraud in achieving objectives.
What is the purpose of a 'risk assessment' component in an internal control framework?
Answer: To identify and analyze risks that could prevent the entity from achieving its objectives, informing how controls should be designed
Risk assessment involves identifying and analyzing relevant risks to achieving objectives so that management can design appropriate controls to address those risks.
Which control helps prevent duplicate payments in a government accounts payable process?
Answer: Matching invoice number, vendor ID, and dollar amount against prior payments before processing
Checking invoice details against prior payment records before processing is a preventive control that flags potential duplicates before funds are disbursed.
What is 'monitoring' as an internal control component in the Green Book?
Answer: Ongoing activities and periodic evaluations that assess whether internal controls are present and functioning effectively
Monitoring involves continuous oversight and periodic assessments to determine whether controls remain effective and whether corrective action is needed.
How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy
Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- theiia.org — Eligibility, score validity, registration deadline, retake policy, registration, renewal · verified Oct 2026