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AGA Examination 3: Governmental Financial Management and Control (GFMC) Sample Questions:

1. Under government fuditing standards, auditors performing financial statement audits must

A) identify expenditures that exceed the related obligations.
B) identify violations of laws which could be punishable by monetary penalties.
C) design tests to detect fraud, waste and abuse.
D) design tests to assess compliance with laws, regulations, contracts and grant agreements.

2. The Prompt Payment Act requires federal agencies to pay

A) invoices no later than 60 days after receipt of the invoice.
B) interest when an invoice is paid late.
C) invoices immediately when received.
D) interest on intragovernmental invoices.

3. According to the GAO, internal control is a process used by management to

A) develop a strategic plan.
B) set the tone at the top.
C) help an entity achieve its objectives.
D) design an ERM system.

4. The National Performance Management Advisory Commission established a comprehensive framework that incorporates performance measurement into the

A) internal control plan.
B) financial statements.
C) audit procedures.
D) budget process.

5. The Single Audit Act requires

A) financial statement audits of non-federal entities that receive or administer grant awards of federal funds.
B) federal departments to have single audits of financial management systems.
C) agencies to use an audit process to maximize the value of and manage acquisition risks.
D) agencies to establish and assess internal controls related to audits.

Solutions: