CGFM TEST 3 ANSWERS | COMPLETE
STUDY GUIDE AND PRACTICE QUESTIONS
FOR EXAM PREP | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Federal Managers Financial Integrity Act of 1982 (FMFIA) requires the head of each agency to evaluate controls on an annual basis, reporting any
weakness along with a corrective action plan
* (resulted in the "green book") *
Single Audit Act of 1984 (amended in 1996) requires the audit of state and local governments and npo's receiving federal funding
Sarbanes Oxley Act of 2002 Placed restrictions on publicly traded companies following Enron scandal. Requires
mgmt to report on I/C's for financial reporting in its annual report.
(ICOFR) Internal Controls Over Financial Reporting
Chief Financial Officers Act of 1990 (CFO Act): required 10 federal agencies to produce audited annual financial reports that included a
report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS systems and techniques managers use to provide reasonable assurance that agency
objectives met in an effective/efficient manner, in compliance with laws/regulations, and
to safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect problems that
have occurred.
Some controls can both detect and prevent problems (but only if their existence is
known).
TIME VALUE OF MONEY Used in consideration of capital budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
Flowcharting Iterative process requiring changes throughout development, each step represents a
decision, also used to evaluate processes for effective internal controls
Earned Value Management (EVM) project mgmt system that weighs both schedule and cost performance to determine if a
project is delivering expected results on time and within budget
,Regression Analysis Predicts the relationship between variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Correlation Coefficient Determines the degree of accuracy the analysis (variables) can be used to predict results
(1=perfect correlation
.85 considered reliable for forecasting)
Multiple Regressions analyzes multiple IV's and look for items with the highest correlation coefficient as being
the most like predictors
Limits of Regression Analysis Data ranges must be relevant (e.g., sample size might be too small to project on a larger
population)
Difficult to find data sets with high correlation coefficients
Bad data = bad results (garbage in, garbage out)
Correlation is not Causation, have to be able to explain how one set of data would
influence another
Data Analytics inspecting, cleaning, transforming, and modeling data to find useful information,
conclusions, and support decision making
Data Mining (Predictive) sorting through large data sets and using filters and algorithms to pick out
relationships
** See strengths and weaknesses
Predictive Analytics data collected through a variety of techniques to analyze current and historical facts to
make predictions about future events
, Data Mining Strengths and Weaknesses * Strengths
Analyst is able to review complete data sets
Ability to link together multiple data sources
* Weaknesses
Must have quality data
Must have ability to understand program requirements and how this is represented in the
data
Starting a Data Analytic Program Collaborate with other agencies for data collection and sharing
Determine ROI in Analytics Programs
Give leaders clear concise analysis they can use to support data driven programs
Enable employees at all levels to see and utilize data for their needs (not just the needs
of senior leaders
Managers to demand the use of data and provide employees with targeted on the job
training
Forensic Auditing examination of financial information that is likely to be used for the investigation and
prosecution of financial crimes
Need to have knowledge of basic legal principles, standards for discovery
Steps for Forensic Auditing a) data collection,
b) data preparation,
c) data analysis,
and d) reporting
Benford Digital Analysis based on observation that more transactions begin with the number one than larger
numbers. More transactions will start with number one than number two ... and more with
number two, than number three, etc...
Because there is an expected distribution of numbers, the testing an point out potentially
fraudulent transactions
STUDY GUIDE AND PRACTICE QUESTIONS
FOR EXAM PREP | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Federal Managers Financial Integrity Act of 1982 (FMFIA) requires the head of each agency to evaluate controls on an annual basis, reporting any
weakness along with a corrective action plan
* (resulted in the "green book") *
Single Audit Act of 1984 (amended in 1996) requires the audit of state and local governments and npo's receiving federal funding
Sarbanes Oxley Act of 2002 Placed restrictions on publicly traded companies following Enron scandal. Requires
mgmt to report on I/C's for financial reporting in its annual report.
(ICOFR) Internal Controls Over Financial Reporting
Chief Financial Officers Act of 1990 (CFO Act): required 10 federal agencies to produce audited annual financial reports that included a
report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS systems and techniques managers use to provide reasonable assurance that agency
objectives met in an effective/efficient manner, in compliance with laws/regulations, and
to safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect problems that
have occurred.
Some controls can both detect and prevent problems (but only if their existence is
known).
TIME VALUE OF MONEY Used in consideration of capital budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
Flowcharting Iterative process requiring changes throughout development, each step represents a
decision, also used to evaluate processes for effective internal controls
Earned Value Management (EVM) project mgmt system that weighs both schedule and cost performance to determine if a
project is delivering expected results on time and within budget
,Regression Analysis Predicts the relationship between variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Correlation Coefficient Determines the degree of accuracy the analysis (variables) can be used to predict results
(1=perfect correlation
.85 considered reliable for forecasting)
Multiple Regressions analyzes multiple IV's and look for items with the highest correlation coefficient as being
the most like predictors
Limits of Regression Analysis Data ranges must be relevant (e.g., sample size might be too small to project on a larger
population)
Difficult to find data sets with high correlation coefficients
Bad data = bad results (garbage in, garbage out)
Correlation is not Causation, have to be able to explain how one set of data would
influence another
Data Analytics inspecting, cleaning, transforming, and modeling data to find useful information,
conclusions, and support decision making
Data Mining (Predictive) sorting through large data sets and using filters and algorithms to pick out
relationships
** See strengths and weaknesses
Predictive Analytics data collected through a variety of techniques to analyze current and historical facts to
make predictions about future events
, Data Mining Strengths and Weaknesses * Strengths
Analyst is able to review complete data sets
Ability to link together multiple data sources
* Weaknesses
Must have quality data
Must have ability to understand program requirements and how this is represented in the
data
Starting a Data Analytic Program Collaborate with other agencies for data collection and sharing
Determine ROI in Analytics Programs
Give leaders clear concise analysis they can use to support data driven programs
Enable employees at all levels to see and utilize data for their needs (not just the needs
of senior leaders
Managers to demand the use of data and provide employees with targeted on the job
training
Forensic Auditing examination of financial information that is likely to be used for the investigation and
prosecution of financial crimes
Need to have knowledge of basic legal principles, standards for discovery
Steps for Forensic Auditing a) data collection,
b) data preparation,
c) data analysis,
and d) reporting
Benford Digital Analysis based on observation that more transactions begin with the number one than larger
numbers. More transactions will start with number one than number two ... and more with
number two, than number three, etc...
Because there is an expected distribution of numbers, the testing an point out potentially
fraudulent transactions
