CPFO Governmental Accounting, Auditing and Financial Reporting Practice Test Exam Questions and Answers Graded A+

CPFO Governmental Accounting,
Auditing and Financial Reporting
Practice Test Exam Questions and
Answers Graded A+

Ultimate responsibility for internal controls rests with.

A. Management

B. The governing board

C. The external auditor

D. The audit committee - Correct answer-B. The governing board. While

management is primarily responsible for internal control, the governing body

remains ultimately responsible for ensuring that mangement meets its

responsibilities in this regard. P 734-735

Which of the following types of fraud is least likely in an environment where cash

receipting and record keeping for accounts receivable are adequately segregated?

A. Lapping

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, B. Pilfering

C. False claims

D. Charge-off fraud - Correct answer-A. Lapping.

What is the best way to select a sample to test internal controls?

A. Block sampling

B. Internal sampling

C. Random sampling

D. Blind sampling - Correct answer-C. Random Sampling

All of the following are examples of inherent risk except:

A. Size

B. Complexity

C. Cash receipts

D. Prior problems - Correct answer-A. Size. There are 5 situations commonly

recognized as inherent risk.

1. Complexity

2. Cash receipts


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