CGFO Ethics, Compliance & Financial Governance 4

Question 1

The Government Accountability Office's 'Yellow Book' (Government Auditing Standards) sets requirements for auditors performing audits of:

Accepted Answer

Government entities and entities receiving government funds

Answer

The Yellow Book applies to audits of government entities at all levels and to audits of entities that receive government awards, not just federal agencies.

Question 2

Under OMB Uniform Guidance, which type of cost is never allowable as a direct charge to a federal grant regardless of circumstances?

Accepted Answer

Lobbying costs

Answer

Lobbying costs are expressly unallowable under OMB Uniform Guidance (2 CFR 200) and may never be charged directly or indirectly to federal awards.

Question 3

A government finance officer who learns of a potential fraud scheme but fails to report it to appropriate authorities may be violating which ethical duty?

Accepted Answer

Duty to report known or suspected illegal acts

Answer

Professional ethics standards and many statutes require finance officers to report suspected fraud or illegal acts to supervisors or appropriate oversight authorities.

Question 4

The Anti-Deficiency Act prohibits federal agencies from:

Accepted Answer

Obligating or expending funds in excess of appropriated amounts

Answer

The Anti-Deficiency Act prohibits federal officials from making or authorizing expenditures or obligations exceeding amounts available in appropriations.

Question 5

When a government entity adopts a formal ethics policy, which element is considered most critical for the policy to be effective?

Accepted Answer

Tone at the top with visible leadership commitment

Answer

Research and professional standards consistently identify leadership modeling of ethical behavior ('tone at the top') as the most critical element for effective ethics programs.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Ethics, Compliance & Financial Governance 4