AUDITING Exam Questions and
Answers Graded A+
What does the CFO Act of 1990 requires to meet the demand of improved
accountability and transparency from the Financial management of federal
agencies - Correct answer-1. Federal agencies were to prepare financial statements,
which would be subjected to a financial audit. Audits were to be carried out by the
CG or IG of the agency
2. Each of the 24 largest Federal Departments and Agencies (CFO agencies) were
to create the position of CFO. IAW the CFO Act, each agency or department were
to vest its financial management functions in its CFO
3. A new position (Deputy Director for Management) was to be created in the
OMB. The individual in this position represents the chief government official
responsible for financial management within the executive Branch of the
government
What did the CFO Act of 1990 do? - Correct answer-Established a new governance
structure for Federal financial management and outlined a clear approach to
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,improving day to day federal financial management, supporting better decision,
and enhancing accountability
What did the Government Management Reform Act of 1994 do? - Correct answer-
Expanded on the CFO Act by requiring the 24 CFO Act to have audited Financial
Statements
What did the Federal Financial Management Act of 1994 require? - Correct
answer-Amends Federal law to require direct deposit of Federal wage, salary, and
retirement payments by electronic funds transfer for recipients who begin receiving
such payments on or after January 1, 1995; unless another method has been
determined by the
Secretary of the Treasury to be appropriate.
Goal of the Government Management Reform Act of 1994 - Correct answer-To
provide a more effective, efficient, and responsive Government.
Federal Financial Management Improvement Act of 1996 - Correct answer-added
more specific financial system, financial management standardization, and internal
control standard requirements to the previous acts.
Purpose of the Federal Financial Management Improvement Act of 1996 (FFMIA)
- Correct answer-Advance Federal financial management by ensuring that Federal
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, financial management systems provide accurate, reliable, and timely financial
management information to the government's managers.
Federal Financial Management Improvement Act of 1996 (FFMIA) - Correct
answer-The purposes of this Act are to—
(1) provide for consistency of accounting by an agency from one fiscal year to the
next, and uniform accounting standards
throughout the Federal Government;
(2) require Federal financial management systems to support full disclosure of
Federal financial data, including the full costs of Federal programs and activities,
to the citizens,
the Congress, the President, and agency management, so that programs and
activities can be considered based on their full
costs and merits;
(3) increase the accountability and credibility of federal financial management;
(4) improve performance, productivity and efficiency of Federal
Government financial management;
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Answers Graded A+
What does the CFO Act of 1990 requires to meet the demand of improved
accountability and transparency from the Financial management of federal
agencies - Correct answer-1. Federal agencies were to prepare financial statements,
which would be subjected to a financial audit. Audits were to be carried out by the
CG or IG of the agency
2. Each of the 24 largest Federal Departments and Agencies (CFO agencies) were
to create the position of CFO. IAW the CFO Act, each agency or department were
to vest its financial management functions in its CFO
3. A new position (Deputy Director for Management) was to be created in the
OMB. The individual in this position represents the chief government official
responsible for financial management within the executive Branch of the
government
What did the CFO Act of 1990 do? - Correct answer-Established a new governance
structure for Federal financial management and outlined a clear approach to
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,improving day to day federal financial management, supporting better decision,
and enhancing accountability
What did the Government Management Reform Act of 1994 do? - Correct answer-
Expanded on the CFO Act by requiring the 24 CFO Act to have audited Financial
Statements
What did the Federal Financial Management Act of 1994 require? - Correct
answer-Amends Federal law to require direct deposit of Federal wage, salary, and
retirement payments by electronic funds transfer for recipients who begin receiving
such payments on or after January 1, 1995; unless another method has been
determined by the
Secretary of the Treasury to be appropriate.
Goal of the Government Management Reform Act of 1994 - Correct answer-To
provide a more effective, efficient, and responsive Government.
Federal Financial Management Improvement Act of 1996 - Correct answer-added
more specific financial system, financial management standardization, and internal
control standard requirements to the previous acts.
Purpose of the Federal Financial Management Improvement Act of 1996 (FFMIA)
- Correct answer-Advance Federal financial management by ensuring that Federal
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, financial management systems provide accurate, reliable, and timely financial
management information to the government's managers.
Federal Financial Management Improvement Act of 1996 (FFMIA) - Correct
answer-The purposes of this Act are to—
(1) provide for consistency of accounting by an agency from one fiscal year to the
next, and uniform accounting standards
throughout the Federal Government;
(2) require Federal financial management systems to support full disclosure of
Federal financial data, including the full costs of Federal programs and activities,
to the citizens,
the Congress, the President, and agency management, so that programs and
activities can be considered based on their full
costs and merits;
(3) increase the accountability and credibility of federal financial management;
(4) improve performance, productivity and efficiency of Federal
Government financial management;
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
