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CGFM Test 3 With Correct Questions And Answers 2024
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CGFM Test 3 With Correct Questions And Answers 2024
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CGFM Test 3 With Correct Questions AndAnswers 2024
Three wBroad wGovernment wSpending wPurposes w- wcorrect wanswer.1) wCurrent wOperations
2) wCapital wOutlays
3) wDebt wService
Present wValue wAnalysis w- wThree wComponents w- wcorrect wanswer.Determines wwhat w$$
wRec'd win wFuture wis wWorth wToday
1) winflation wcomponent w- wyear wover wyear wloss win wvalue
2) wenterprise wcomponent w- winherent wrisk
3) wunique wcomponent w-
Budget wAccounting wand wProcedures wAct wof w1950 w- wcorrect wanswer.Requires wthe whead
wof weach wfederal wagency wto westablish wand wmaintain wI/C's.
Federal wManagers wFinancial wIntegrity wAct wof w1982 w(FMFIA) w- wcorrect wanswer.requires
wthe whead wof weach wagency wto wevaluate wcontrols won wan wannual wbasis, wreporting wany
wweakness walong wwith wa wcorrective waction wplan
** w(resulted win wthe w"green wbook") w**
Single wAudit wAct wof w1984 w(amended win w1996) w- wcorrect wanswer.requires wthe waudit wof
wstate wand wlocal wgovernments wand wnpo's wreceiving wfederal wfunding
Sarbanes wOxley wAct wof w2002 w- wcorrect wanswer.Placed wrestrictions won wpublicly wtraded
wcompanies wfollowing wEnron wscandal. wRequires wmgmt wto wreport won wI/C's wfor wfinancial
wreporting win wits wannual wreport.
(ICOFR) w- wcorrect wanswer.Internal wControls wOver wFinancial wReporting
Chief wFinancial wOfficers wAct wof w1990 w(CFO wAct): w- wcorrect wanswer.required w10 wfederal
wagencies wto wproduce waudited wannual wfinancial wreports wthat wincluded wa wreport won
winternal wcontrol.
expanded win w1994 wby wGMRA
,INTERNAL wCONTROLS w- wcorrect wanswer.systems wand wtechniques wmanagers wuse wto
wprovide wreasonable wassurance wthat wagency wobjectives wmet win wan weffective/efficient
wmanner, win wcompliance wwith wlaws/regulations, wand wto wsafeguard wassets. w
Implemented wto waccomplish wcertain wresults, wprevent wproblems, wor wdetect wproblems
wthat whave woccurred.
Some wcontrols wcan wboth wdetect wand wprevent wproblems w(but wonly wif wtheir wexistence wis
wknown).
TIME wVALUE wOF wMONEY w- wcorrect wanswer.Used win wconsideration wof wcapital
wbudgeting
1) wPresent wValue wAnalysis
2) wFuture wValue wAnalysis
3) wPayback wAnalysis
Flowcharting w- wcorrect wanswer.Iterative wprocess wrequiring wchanges wthroughout
wdevelopment, weach wstep wrepresents wa wdecision, walso wused wto wevaluate wprocesses wfor
weffective winternal wcontrols
Earned wValue wManagement w(EVM) w- wcorrect wanswer.project wmgmt wsystem wthat wweighs
wboth wschedule wand wcost wperformance wto wdetermine wif wa wproject wis wdelivering wexpected
wresults won wtime wand wwithin wbudget
Regression wAnalysis w- wcorrect wanswer.Predicts wthe wrelationship wbetween wvariables:
1) wDirect wLinear wRegression
2) wIndirect wLinerar wRegression
3) wNon-linear wRegression
4) wNo wRelationship
** wSee wLimits wof wRegression wAnalysis
Correlation wCoefficient w- wcorrect wanswer.Determines wthe wdegree wof waccuracy wthe
wanalysis w(variables) wcan wbe wused wto wpredict wresults w(1=perfect wcorrelation
.85 wconsidered wreliable wfor wforecasting)
Multiple wRegressions w- wcorrect wanswer.analyzes wmultiple wIV's wand wlook wfor witems wwith
wthe whighest wcorrelation wcoefficient was wbeing wthe wmost wlike wpredictors
Limits wof wRegression wAnalysis w- wcorrect wanswer.Data wranges wmust wbe wrelevant w(e.g.,
wsample wsize wmight wbe wtoo wsmall wto wproject won wa wlarger wpopulation)
Difficult wto wfind wdata wsets wwith whigh wcorrelation wcoefficients
,Bad wdata w= wbad wresults w(garbage win, wgarbage wout)
Correlation wis wnot wCausation, whave wto wbe wable wto wexplain whow wone wset wof wdata wwould
winfluence wanother
Data wAnalytics w- wcorrect wanswer.inspecting, wcleaning, wtransforming, wand wmodeling
wdata wto wfind wuseful winformation, wconclusions, wand wsupport wdecision wmaking
Data wMining w- wcorrect wanswer.(Predictive) wsorting wthrough wlarge wdata wsets wand wusing
wfilters wand walgorithms wto wpick wout wrelationships
** wSee wstrengths wand wweaknesses
Predictive wAnalytics w- wcorrect wanswer.data wcollected wthrough wa wvariety wof wtechniques
wto wanalyze wcurrent wand whistorical wfacts wto wmake wpredictions wabout wfuture wevents
Data wMining wStrengths wand wWeaknesses w- wcorrect wanswer.* wStrengths
Analyst wis wable wto wreview wcomplete wdata wsets
Ability wto wlink wtogether wmultiple wdata wsources
* wWeaknesses
Must whave wquality wdata
Must whave wability wto wunderstand wprogram wrequirements wand whow wthis wis wrepresented
win wthe wdata
Starting wa wData wAnalytic wProgram w- wcorrect wanswer.Collaborate wwith wother wagencies
wfor wdata wcollection wand wsharing
Determine wROI win wAnalytics wPrograms
Give wleaders wclear wconcise wanalysis wthey wcan wuse wto wsupport wdata wdriven wprograms
Enable wemployees wat wall wlevels wto wsee wand wutilize wdata wfor wtheir wneeds w(not wjust wthe
wneeds wof wsenior wleaders
Managers wto wdemand wthe wuse wof wdata wand wprovide wemployees wwith wtargeted won wthe
wjob wtraining
Forensic wAuditing w- wcorrect wanswer.examination wof wfinancial winformation wthat wis wlikely
wto wbe wused wfor wthe winvestigation wand wprosecution wof wfinancial wcrimes w
Need wto whave wknowledge wof wbasic wlegal wprinciples, wstandards wfor wdiscovery
Steps wfor wForensic wAuditing w- wcorrect wanswer.a) wdata wcollection,
wb) wdata wpreparation, w
c) wdata wanalysis, w
and wd) wreporting
Benford wDigital wAnalysis w- wcorrect wanswer.based won wobservation wthat wmore
wtransactions wbegin wwith wthe wnumber wone wthan wlarger wnumbers. wMore wtransactions wwill
, wstart wwith wnumber wone wthan wnumber wtwo w... wand wmore wwith wnumber wtwo, wthan wnumber
wthree, wetc...
Because wthere wis wan wexpected wdistribution wof wnumbers, wthe wtesting wan wpoint wout
wpotentially wfraudulent wtransactions
Competitive wSource wAnalysis w- wcorrect wanswer.Used wto wdetermine wif wthere wis wa wbenefit
wto wcontracting wgovernment wservices wto wthe wprivate wsector:
1) wConduct wa wmanagement wstudy
2) wPrepare wa wperformance wwork wstatement w- wdefines wthe wexpected woutputs/results
3) wProject wthe win-house wand wcontract wcosts
4) wSelect wthe wbest walternative w- wcombination wof wperformance wand wprice
Ratio wAnalysis w- wcorrect wanswer.Active wuse wof wnumbers wto wpoint wout wproblems wand
windicate wperformance, wquestions wto wask, wetc. wThey wserve was wstarting wpoints wfor wfurther
winquiry. w
Ex. wnumbers wrevealing wthat wreceivables ware wincreasing wcould wtrigger wan wincrease win
wdebt wcollection wefforts. wOther wrations wcould windicate wfiscal wstress, wadequacy wof
wreserves, wliquidity, wworkloads, wresponse wtimes, wand waccuracy wrates.
Pure wRatios w- wcorrect wanswer.relating wone wnumber wto wanother wto wcreate wa wmeaningful
windicator wof wperformance w(ex., wtotal wexpenditures wto wbudget).
Comparative wAnalysis w- wcorrect wanswer.Comparing wentities wnumbers wand wratios wto
wanother wagency wor wbenchmarks. wCredit wrating wagencies walso wpublish wmedian wratios
wby windustry wand wwhat wthey wconsider wto wbe wreasonable wranges wand wratios
Time wSeries wAnalysis w- wcorrect wanswer.comparing wthe wagency wagainst witself wover wtime,
wex. wCalculating wthe wpercentage wchange wfrom wyear wto wyear
Common wSize wStatements w- wcorrect wanswer.converts wall wdata welements win wa
wstatement wto wpercentages wof w100, wExamines wexpenditures wof wa wfunction was wcompared
wto wtotal wexpenditures w(ex., wpercentage wof wtotal wbudget wspent won wpublic wsafety wyear
wover wyear, wand wif wit wis wgrowing wdisproportionately wto wother wprograms)
Per wCapita wInformation w- wcorrect wanswer.Debt wper wcapita
Cautionary wNote won wRatio wAnalysis w- wcorrect wanswer.Not wan wends wunto wthemselves
wbut wserve was wa wstarting wpoint wfor wfurther winvestigation.
Liquidity wRatios w- wcorrect wanswer.Determines wentities wability wto wmeet wcreditors
wdemands:
1) wCurrent wRatio
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