CGFM by AGA Valid Free Exam Practice Test

Question 1

Management segregates duties among staff in order to reduce the risk of fraud

A. detection. B. pressure. C. rationalization. D. opportunity.

Correct Answer: D

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Question 2

An employee is set to receive a lumpsum payment of $500,000 in ten years. The agency uses an opportunity rate of 12% for its investments. If inflation is 3%, how much must the agency invest today to cover the future lumpsum payment?

A. $160,986 B. $485,000 C. $186,023 D. $440,000

Correct Answer: A

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Question 3

A city parks department is selecting a contractor to renovate a community playground. Which of the following contractors should be selected?

A. The contractor with the lowest bid who has a history of delayed projects. B. The contractor with the highest bid, who includes luxury, non-requested upgrades to the design. C. The contractor with the second-lowest bid, who has no prior violations and meets all bid specifications. D. The contractor whose bid was submitted past the deadline but offers a discount for early payment.

Correct Answer: C

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Question 4

When reviewing a report on internal control from a shared service provider that noted a weakness, the agency should

A. ask the service provider to correct the weakness. B. dismiss the weakness. C. refer the weakness to the Contracting Officer. D. consider the existence of compensating or mitigating controls.

Correct Answer: D

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Question 5

A state agency has begun a pilot program with a community action agency for a community-based approach to provide services to underserved areas. A review after the first year compared the number of families served by both agencies and identified efficiencies reached by having community involvement. What type of engagement was used to review the pilot program?

A. financial audit B. performance audit C. single audit D. attestation

Correct Answer: B

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Question 6

Management's need for real-time access to data is facilitated when

A. the prior year's financial statement data underlies the management reports used to decide on future expenditures. B. complex data sets are available on demand, presented with minimal distractions. C. data supporting dashboards are updated every quarter. D. data is represented visually and includes information that indirectly relates to the subject matter.

Correct Answer: B

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Question 7

Entity management's appointment of a senior official to ensure the resolution of audit recommendations is a demonstration of management's

A. delegation of authority. B. agreement with the audit findings. C. disagreement with the audit findings. D. support for the audit process.

Correct Answer: D

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Question 8

Which of the following is an example of an outcome measure?

A. total environmental impact statements reviewed B. percentage of disaster claims paid on time C. number of federal capital territory students that graduated D. amount of disability inquiries received during a pandemic

Correct Answer: B

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Question 9

Cloud computing includes which of the following services?

A. mainframe computing B. gateway transmission C. hosted D. satellite-to-satellite

Correct Answer: C

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AGA Certified Government Financial Manager (CGFM) - CGFM Exam Practice Test