CGFM Internal Controls and Government Auditing 1

Question 1

Which publication defines the standards for internal control in the federal government, commonly known as the 'Green Book'?

Accepted Answer

GAO's Standards for Internal Control in the Federal Government

Answer

GAO's Standards for Internal Control in the Federal Government, known as the 'Green Book,' provides the framework for federal agencies to establish and evaluate internal controls.

Question 2

What are the five components of internal control identified in the Green Book?

Accepted Answer

Control Environment, Risk Assessment, Control Activities, Information and Communication, Monitoring

Answer

The five components are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring, aligned with the COSO framework.

Question 3

Which law requires federal agencies to annually assess and report on the effectiveness of their internal controls over financial reporting?

Accepted Answer

Federal Managers' Financial Integrity Act of 1982

Answer

The Federal Managers' Financial Integrity Act (FMFIA) of 1982 requires agency heads to annually evaluate and report on the adequacy of their internal control and financial systems.

Question 4

What is the purpose of the Single Audit Act?

Accepted Answer

To require non-federal entities that expend significant federal awards to undergo a comprehensive audit

Answer

The Single Audit Act requires states, local governments, and non-profit organizations that expend $750,000 or more in federal awards annually to have a single, organization-wide audit.

Question 5

In government auditing, what does 'GAGAS' stand for?

Accepted Answer

Generally Accepted Government Auditing Standards

Answer

GAGAS stands for Generally Accepted Government Auditing Standards, also known as the 'Yellow Book,' issued by GAO for audits of government entities and federally funded programs.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM Internal Controls and Government Auditing 1