CGFO Ethics, Compliance & Financial Governance 2

Question 1

A government finance officer discovers that a department head has been approving invoices from a vendor owned by the department head's spouse. Which ethical principle is most clearly violated?

Accepted Answer

Conflict of interest

Answer

A conflict of interest exists when a public official's personal financial interests intersect with their official decision-making responsibilities.

Question 2

Under the GFOA Code of Professional Ethics, which obligation requires members to disclose all facts known to them that, if not disclosed, might distort the reporting of financial conditions?

Accepted Answer

Integrity

Answer

Integrity under the GFOA Code requires full disclosure of all material facts to prevent misleading financial reporting.

Question 3

Which federal law established the framework for internal controls in federal agencies and is considered a foundational governance standard for government finance?

Accepted Answer

Federal Managers Financial Integrity Act (FMFIA)

Answer

The FMFIA of 1982 requires federal agencies to establish internal accounting and administrative controls based on GAO standards.

Question 4

A city finance director is asked by the mayor to delay recording a significant liability until after the upcoming election. The appropriate response is to:

Accepted Answer

Refuse and record the liability in the correct period

Answer

GAAP requires liabilities to be recorded in the period they are incurred; delaying recording to influence elections violates both accounting standards and ethical duties.

Question 5

The 'reasonable person' standard in government ethics is used to evaluate whether a public official's actions would be perceived as improper by:

Accepted Answer

A knowledgeable, objective observer

Answer

The reasonable person standard asks how an informed, impartial member of the public would evaluate the official's conduct.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Ethics, Compliance & Financial Governance 2