AGA Examination 3: Governmental Financial Management and Control (GFMC) - GFMC Exam Practice Test

A. auditor detects non-compliance with provisions of law.

B. audit report would compromise ongoing legal proceedings.

C. auditors detect material fraud.

D. entity management fails to satisfy legal requirements.

A. The budget department staff is responsible for preparing the budget and for reporting on budget cost variances.

B. Management policy allows project managers to oversee controls of companies in which they have a material interest.

C. The accounting department has one clerk prepare vendor payments and another clerk reconcile bank accounts.

D. The contract department staff awards contracts and maintains a database for vendor information.

A. hosted

B. gateway transmission

C. mainframe computing

D. satellite-to-satellite

A. reporting the results.

B. considering political ramifications.

C. consulting legal counsel.

D. follow-up on control weaknesses.

A. assessing the adequacy of controls.

B. documenting how transactions of events are processed.

C. identifying the effectiveness of management activities.

D. identifying potential risks.

A. Management mitigates risks, auditors monitor compliance with controls.

B. Both management and auditors determine risk tolerance levels.

C. Auditors identify risks, management implements control measures.

D. Management identifies risks, auditors assess control effectiveness.

A. ensure there is no fraud, waste or abuse within the entity.

B. confirm that all management objectives will be met.

C. identify program areas where efficiencies may be gained.

D. determine what legislation is not applicable to the entity.

A. a five-year performance plan.

B. a SEA report.

C. an annual performance report.

D. the prior year's audited financial report.

A. We identified multiple credit card purchases without receipts to support them.

B. We recommend that the government implements a timely review of all credit card purchases.

C. Finance Department personnel did not regularly review purchases to ensure compliance.

D. Government policy requires a cardholder to submit receipts for all purchases.

A. the fear of detection.

B. performance of employee background checks.

C. job satisfaction and sense of "team."

D. delegation of responsibility without oversight.