CGFM Exam Dumps - CGFM Certified Government Financial Manager

ï‚·What Is an Attestation Engagement?An attestation engagement is a type of professional service where an independent practitioner (typically an auditor or CPA) evaluates and provides a report on assertions made by another party about a specific subject matter. These engagements follow standards set by organizations like the AICPA or GAO.

ï‚·Who Makes the Assertion?

Management's Role:Management is the party responsible for making an assertion about the subject matter under review. For example, management might assert that internal controls are effective or that financial statements are fairly presented.

Auditor/Practitioner’s Role:The auditor or practitioner examines the evidence related to the assertion and provides an opinion or conclusion based on that examination.

User’s Role:The users are the stakeholders (e.g., investors, regulators) who rely on the practitioner’s report, but they do not make assertions.

ï‚·Why Other Options Are Incorrect:

B. Auditor/Practitioner:The auditor or practitioner evaluates the assertion made by management, not the other way around.

C. Practitioner:See above—practitioners don’t make assertions.

D. User:Users are the intended audience of the attestation report, not the party making assertions.

ï‚·References and Documents:

AICPA Attestation Standards (SSAEs):Clarifies the role of management in making assertions during attestation engagements.

GAO’s Government Auditing Standards (Yellow Book):Provides additional guidance on the roles of parties in attestation engagements.

Risk Assessment Under COSO Framework:

The first step in a COSO-based risk assessment is defining internal control objectives. This establishes what the organization aims to achieve, providing a framework for identifying risks and ensuring controls align with objectives.

Risk assessment focuses on evaluating the likelihood and impact of risks that could hinder these objectives.

Explanation of Answer Choices:

A. Identification of risks: Identifying risks follows the definition of internal control objectives.

B. Defining internal control objectives: Correct. Objectives must be defined first to provide a basis for identifying and assessing risks.

C. Review of prior audit findings: Important, but it’s not the starting point for a risk assessment under COSO.

D. Setting risk tolerance levels: This occurs later, after risks have been identified and evaluated.

References:

COSO,Internal Control - Integrated Framework.

GAO,Standards for Internal Control in the Federal Government (Green Book).

Assumptions in Disaster Planning:

Financial continuity planning for natural disasters must account for scenarios where the event occurs suddenly and without warning.

This assumption ensures that governments are prepared to quickly resume critical financial operations even under challenging and unpredictable circumstances.

Explanation of Answer Choices:

A. Leadership and staff will reconvene at an alternate location: While this is part of disaster planning, it is not the primary assumption.

B. A fully redundant infrastructure will be available to staff at an alternate location: This may not always be realistic or feasible.

C. There may be no warning of the potential emergency: Correct. Disaster planning assumes that emergencies can occur without prior notice.

D. Government agencies will need to operate as standalone organizations: This is not a standard assumption in disaster planning.

References:

FEMA,Continuity Guidance Circular.

GAO,Disaster Resilience and Continuity Planning.

OMB Circular A-11 and Capital Asset Acquisition:

OMB Circular A-11 mandates the use ofearned value management (EVM)for measuring cost, schedule, and performance goals in capital asset acquisition projects.

EVM integrates project scope, schedule, and cost data to assess project performance and forecast outcomes.

Explanation of Answer Choices:

A. Earned value management: Correct. EVM is the prescribed method for tracking progress on capital projects under OMB Circular A-11.

B. Net present value: Used for financial analysis, such as determining the economic value of future cash flows, but not for tracking project progress.

C. Future value: Measures the value of an investment at a future point, not applicable to project tracking.

D. Regression analysis: A statistical method for identifying relationships between variables, not for measuring project performance.

References:

OMB Circular A-11,Capital Programming Guide.

U.S. General Services Administration (GSA),Earned Value Management Implementation.

ï‚·What Are Simplified Acquisition Processes?Simplified acquisition processes are procurement methods designed to streamline purchasing for government agencies. These processes reduce the administrative burden for smaller purchases, typically below a certain dollar threshold (as defined in theFederal Acquisition Regulation (FAR)).

ï‚·How Do These Processes Assist Agencies?

Bulk Purchase Discounts:Simplified acquisition allows agencies to leverage economies of scale and negotiate bulk purchase discounts for commonly used goods and services.

Reduced Administrative Costs:By simplifying documentation, reducing oversight requirements, and accelerating the approval process, these methods lower administrative costs and increase efficiency.

ï‚·Why Other Options Are Incorrect:

A. Maintaining the competitive bid requirement and allowing credit card purchases:While simplified acquisitions may allow credit card purchases, the focus is not maintaining competitive bids but reducing costs and streamlining the process.

C. Increasing the number of requisitions processed:The goal is efficiency, not increasing the volume of requisitions.

D. Reducing acquisition staff and managerial oversight:These processes may simplify oversight but do not aim to reduce staff; instead, they help existing staff work more efficiently.

ï‚·References and Documents:

Federal Acquisition Regulation (FAR) Part 13:Covers simplified acquisition processes and their intended benefits.

GAO Reports on Federal Procurement (2020):Highlights the cost savings and efficiencies gained through simplified acquisition methods.