Free AGA CGFM Exam Dumps Questions & Answers

What is the basis for determining materiality for financial audits?

• A.  The entity's main provider of resources typically sets materiality levels for financial reporting.
• B.  The auditor establishes materiality based on whether a misstatement would influence the judgement made by a reasonable user of the financial statements.
• C.  The auditor sets a standard percentage for all entities by transaction class.
• D.  The auditee determines what is material based on their understanding of how the financial statements may be used by third parties.

The goal of shared gervices is to

• A.  efficiently aggregate resources.
• B.  transfer responsibilities to another entity.
• C.  provide private business opportunities.
• D.  reduce current staffing levels.

A single audit report will include an opinion or disclaimer of opinion that the financial statements are

• A.  fairly presented in accordance with GAO.
• B.  fairly presented in accordance with GAAP.
• C.  free from fraud.
• D.  fairly presented in accordance with GASB.

Under the control environment component of internal control, management should

• A.  establish and operate activities to monitor the internal control system.
• B.  communicate quality information to achieve the entity's objectives.
• C.  implement control activities through policies.
• D.  demonstrate a commitment to integrity and ethical values.

Internal control over financial reporting means that management can reasonably make which of the following assertions?

• A.  Sufficient spending authority and financial resources exist to support reported expenditures.
• B.  Management has met its legislatively directed program goals.
• C.  All assets and liabilities have been properly valued and, where applicable, all costs have been properly allocated.
• D.  A physical inventory has been conducted of all assets meeting the jurisdiction's capitalization threshold.