Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 171:

  An agency receives miscellaneous revenue and investment revenue. The January beginning balance is $12,000. Monthly revenue is projected to be $2,000 and monthly expenses are projected to be $1,800. The agency plans to purchase a $10,000 90-day bond at par value on January 15. The agency has a $20,000 90-day bond that matures on February 15. What is the projected cash balance at the end of March?

  A. $11,400

  B. $12,600

  C. $22,600

  D. $32,600

  Correct Answer: C

• Question 172:

  What is the present value of $25,000 to be received 10 years from today if the opportunity rate is 4%, the current tax rate is 1% and the expected future value is 9%?

  

  A. $ 9,706

  B. $10,550

  C. $15,295

  D. $16,900

  Correct Answer: D

• Question 173:

  Internal controls are the primary responsibility of:

  A. the financial systems.

  B. internal auditors.

  C. management.

  D. external auditors.

  Correct Answer: C

• Question 174:

  The objective of financial and non-financial performance measures is to:

  A. demonstrate probity and legality in the handling of public funds.

  B. demonstrate taxpayer preference in allocation of funds.

  C. assess policy and reasonableness of budget allocation.

  D. assess government performance and program accountability.

  Correct Answer: D

• Question 175:

  Upon completion of a performance audit the auditee will be provided with a report that includes the audit objectives, methodology, results and:

  A. special purpose reports.

  B. test of internal controls.

  C. audit documentation.

  D. audit scope.

  Correct Answer: D

• Question 176:

  A state legislature wants to determine if the non-profit agency that received revenue from personalized license plates fees used the money appropriately. To make this assessment the legislature should request:

  A. a financial audit.

  B. a performance audit.

  C. an attestation.

  D. an internal control review.

  Correct Answer: B

• Question 177:

  The intended purpose of The Single Audit Act is to:

  A. improve financial management of state financial programs.

  B. help states schedule federal audits on a grant-by-grant basis.

  C. promote cooperation between auditors.

  D. perform audits under FASAB standards.

  Correct Answer: C

• Question 178:

  An independent auditor has prepared the chart below describing the status of the audit findings requested for an agency over the past four years. Based upon these audit findings which of the following conclusions could be drawn on the agency's internal control framework?

  

  A. The agency is addressing audit findings appropriately.

  B. Findings in year 2009 reflect policy improvement.

  C. There is ineffective management of the agency.

  D. The agency internal control staffing is adequate.

  Correct Answer: C

• Question 179:

  The Federal Credit Reform Act of 1990 requires that the cost of loan defaults and interest subsidies be estimated and recorded:

  A. on a FIFO basis as loans are made.

  B. when a defaulted loan is made good by the agency.

  C. on a present value basis when the loans are made or guarantees are issued.

  D. on a cash basis when the loan is paid.

  Correct Answer: C

• Question 180:

  The internal control structure is designed to assist managers in:

  A. preparing consistent financial statements in accordance with applicable standards.

  B. guaranteeing the success of an organization's program and preventing fraud, waste and mismanagement of resources.

  C. ensuring that physical security controls prevent unauthorized individuals from accessing sensitive information.

  D. achieving agency program objectives and ensuring that functions are efficiently and effectively performed.

  Correct Answer: D