AGA cgfm practice test

Certified Government Financial Manager Exam


Question 1

Which of the following danger sign/s help to detect Auditors’ fraud?

  • A. Borrowing small amounts from fellow employees
  • B. Pronounced criticism of others, endearing to divert suspicion
  • C. Replying to Questions with unreasonable explanations
  • D. All of these
Answer:

D

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Question 2

If a reportable condition might result in a material misstatement of financial statements, then it must
be noted as a:

  • A. Material weakness
  • B. Unqualified report
  • C. Revised situation
  • D. Adverse condition
Answer:

A

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Question 3

Which of the following opinions is not expressed by auditors as to whether financial statements are
expressed fairly in all material respects with respect to generally accepted accounting principles?

  • A. Unqualified opinion
  • B. Qualified opinion
  • C. Disclaimer
  • D. Reversal opinion
Answer:

D

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Question 4

The auditors provide _______________ of the reliability of the financial statements.

  • A. Reasonable assurance
  • B. Sample
  • C. Material misstatement
  • D. None of these
Answer:

A

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Question 5

The auditor(s) should:
I- Adequately plan the work and properly supervise assistants
II- Properly study internal accounting controls to determine their reliability
These points are the part of

  • A. General Standards
  • B. Field work Standards
  • C. Reporting Standards
  • D. All of these
Answer:

B

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Question 6

Most States require that local government engage the services of an _________ firm to audit their
financial statements.

  • A. Government accountability office
  • B. Certified public accounting firm
  • C. Government finance officers association
  • D. None of these
Answer:

B

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Question 7

At the federal level, financial auditing is conducted by two organization ______________ conducts
an annual financial audit

  • A. Inspectors general
  • B. Financial auditor
  • C. Dealer
  • D. Auditing auditor
Answer:

A

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Question 8

The federal government requires non-profit and privet firms to make _______________ assumption
regarding future interest rates, wage increases, inflation and the like.

  • A. Implicit, one understated by another
  • B. Explicit
  • C. Both A&B
  • D. None of these
Answer:

C

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Question 9

Pension system may be operated by:

  • A. A single nonprofit or government
  • B. Multiple organization that share costs
  • C. Multiple organizations that engage a management agent
  • D. All of these
Answer:

D

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Question 10

A city has an EMF of 0.80. Its premium at 1.0 would have been $10,000. Therefore, its actual
premium is:

  • A. $800
  • B. $8000
  • C. $8800
  • D. None of these
Answer:

B

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