CDFM, Module 1.4 Exam Questions And
Answers
Internal Control Program -
correct answer ✅The DOD established this to comply with the
requirements of the Federal Managers' Financial Integrity Act of
1982 as codified in 31 U.S.C. 3512.
DOD defines internal controls as -
correct answer ✅"the organization, policies, and procedures that
help program and financial managers to achieve results and
safeguard the integrity of their programs."
Federal employees must ensure that government resources: -
correct answer ✅Are used efficiently and effectively to achieve
intended program results. Are used in a way that is consistent with
the agency's mission; is in compliance with law and regulation; and
minimizes potential for waste, fraud, and mismanagement.
Federal Managers' Financial Integrity Act of 1982 (FMFIA) -
correct answer ✅Amended the Accounting and Auditing Act of
1950 to require Federal agencies to establish internal accounting
and administrative controls that make it easier to: Prevent waste or
misuse of agency funds or property; assure the accountability of
assets.
,CDFM, Module 1.4 Exam Questions And
Answers
FMFIA of 1982 required OMB Director to: -
correct answer ✅Establish guidelines for internal controls
program.
FMFIA of 1982 required the head of each agency to: -
correct answer ✅Evaluate internal controls annually and submit
report to Congress and the President. The reports, excluding
classified information, are to be available to the public. FMFIA also
requires that material weaknesses be identified, tracked, and
corrected.
OMB Circular A-123 -
correct answer ✅Requires agencies and individual Federal
managers to: Develop and implement cost-effective internal
controls for results-oriented management; Assess the adequacy of
internal controls in Federal programs and operations; Identify
needed improvements; Take corresponding corrective action;
Report annually on internal controls.
Internal controls are the organization, policies and procedures used
to reasonably ensure: -
correct answer ✅Effectiveness and efficiency of operations;
, CDFM, Module 1.4 Exam Questions And
Answers
Reliability of financial reporting; Compliance with applicable laws
and regulations
Internal controls over financial reporting are designed to provide
_____ ______ about the following items: -
correct answer ✅Reasonable Assurance. All reported transactions
actually occurred during the reporting period; All assets and
liabilities have been reported and assets are properly valued; All
assets have been safeguarded against fraud and abuse; The
financial report is presented in the proper form and required
disclosures are present.
Internal controls guarantee... -
correct answer ✅Neither the success of the agency programs, nor
the absence of waste, fraud, and mismanagement, but they are a
means of managing the risk associated with Federal programs and
operations.
GAO (Government Accountability Office) Standards for Internal
Controls in the Federal Government -
correct answer ✅Control Environment; Risk Assessment; Control
Activities; Information and Communications; Monitoring. The five
GAO standards define the minimum level of quality acceptable in
Answers
Internal Control Program -
correct answer ✅The DOD established this to comply with the
requirements of the Federal Managers' Financial Integrity Act of
1982 as codified in 31 U.S.C. 3512.
DOD defines internal controls as -
correct answer ✅"the organization, policies, and procedures that
help program and financial managers to achieve results and
safeguard the integrity of their programs."
Federal employees must ensure that government resources: -
correct answer ✅Are used efficiently and effectively to achieve
intended program results. Are used in a way that is consistent with
the agency's mission; is in compliance with law and regulation; and
minimizes potential for waste, fraud, and mismanagement.
Federal Managers' Financial Integrity Act of 1982 (FMFIA) -
correct answer ✅Amended the Accounting and Auditing Act of
1950 to require Federal agencies to establish internal accounting
and administrative controls that make it easier to: Prevent waste or
misuse of agency funds or property; assure the accountability of
assets.
,CDFM, Module 1.4 Exam Questions And
Answers
FMFIA of 1982 required OMB Director to: -
correct answer ✅Establish guidelines for internal controls
program.
FMFIA of 1982 required the head of each agency to: -
correct answer ✅Evaluate internal controls annually and submit
report to Congress and the President. The reports, excluding
classified information, are to be available to the public. FMFIA also
requires that material weaknesses be identified, tracked, and
corrected.
OMB Circular A-123 -
correct answer ✅Requires agencies and individual Federal
managers to: Develop and implement cost-effective internal
controls for results-oriented management; Assess the adequacy of
internal controls in Federal programs and operations; Identify
needed improvements; Take corresponding corrective action;
Report annually on internal controls.
Internal controls are the organization, policies and procedures used
to reasonably ensure: -
correct answer ✅Effectiveness and efficiency of operations;
, CDFM, Module 1.4 Exam Questions And
Answers
Reliability of financial reporting; Compliance with applicable laws
and regulations
Internal controls over financial reporting are designed to provide
_____ ______ about the following items: -
correct answer ✅Reasonable Assurance. All reported transactions
actually occurred during the reporting period; All assets and
liabilities have been reported and assets are properly valued; All
assets have been safeguarded against fraud and abuse; The
financial report is presented in the proper form and required
disclosures are present.
Internal controls guarantee... -
correct answer ✅Neither the success of the agency programs, nor
the absence of waste, fraud, and mismanagement, but they are a
means of managing the risk associated with Federal programs and
operations.
GAO (Government Accountability Office) Standards for Internal
Controls in the Federal Government -
correct answer ✅Control Environment; Risk Assessment; Control
Activities; Information and Communications; Monitoring. The five
GAO standards define the minimum level of quality acceptable in
