CPFO RISK ASSESSMENT EXAM SCRIPT 2026
COMPLETE QUESTIONS AND ANSWERS
100% CORRECT
●● Risk identification is:
A. Monitoring the frequency and severity of claims and modifying them
as necessary.
B. A process that is ongoing and flowing throughout an organization and
designed to identify potential events that may negatively affect the
organization.
C. Identifying and evaluating risk exposures.
D. An essential component in identifying risk by understanding the
sources, types, and likelihood of risk.
Answer: D.
●● Specification of objectives, identification of risks, alertness to
potential fraud, and identification and assessment of changes is
considered:
A. principles that are always in connection with effective risk
assessment.
B. always present in an effective control environment
C. always present when control activities are effective
D. evidence when information and communication are effective.
,Answer: A.
●● Risk evaluation:
A. identifies and evaluates risk exposures.
B. assumes financial responsibility for some losses.
C. monitors the frequency and severity of claims and modifies them as
necessary.
D. None of the above.
Answer: C.
●● Risk treatment will include which of the following?
A. Loss prevention and control
B. Monitoring
C. Precision
D.None of the above.
Answer: A.
●● Enterprise risk management is:
A. Monitoring the frequency and severity of claims and modifying them
as necessary.
B. A process that is ongoing and flowing throughout an organization and
designed to identify potential events that may negatively affect the
organization.
, C. Heightened awareness of a government's financial information
D. All of the above.
Answer: B.
●● Which of the following describes inherent risk in internal controls?
A. Programs involving large amounts of cash receipts.
B. A process that is ongoing and flowing throughout an organization and
designed to identify potential events that may negatively affect the
organization.
C. assumes financial responsibility for some losses.
D. identifies and evaluates risk exposures.
Answer: A.
●● Which of the following has a pervasive effect on the basic
components of a comprehensive framework of internal control?
A. Control environment
B. Risk assessment
C. Control activities
D. Monitoring
Answer: A.
●● "A finance officer manages public finances transparently" is an
example from which principle in the GFOA Code of Ethics?
COMPLETE QUESTIONS AND ANSWERS
100% CORRECT
●● Risk identification is:
A. Monitoring the frequency and severity of claims and modifying them
as necessary.
B. A process that is ongoing and flowing throughout an organization and
designed to identify potential events that may negatively affect the
organization.
C. Identifying and evaluating risk exposures.
D. An essential component in identifying risk by understanding the
sources, types, and likelihood of risk.
Answer: D.
●● Specification of objectives, identification of risks, alertness to
potential fraud, and identification and assessment of changes is
considered:
A. principles that are always in connection with effective risk
assessment.
B. always present in an effective control environment
C. always present when control activities are effective
D. evidence when information and communication are effective.
,Answer: A.
●● Risk evaluation:
A. identifies and evaluates risk exposures.
B. assumes financial responsibility for some losses.
C. monitors the frequency and severity of claims and modifies them as
necessary.
D. None of the above.
Answer: C.
●● Risk treatment will include which of the following?
A. Loss prevention and control
B. Monitoring
C. Precision
D.None of the above.
Answer: A.
●● Enterprise risk management is:
A. Monitoring the frequency and severity of claims and modifying them
as necessary.
B. A process that is ongoing and flowing throughout an organization and
designed to identify potential events that may negatively affect the
organization.
, C. Heightened awareness of a government's financial information
D. All of the above.
Answer: B.
●● Which of the following describes inherent risk in internal controls?
A. Programs involving large amounts of cash receipts.
B. A process that is ongoing and flowing throughout an organization and
designed to identify potential events that may negatively affect the
organization.
C. assumes financial responsibility for some losses.
D. identifies and evaluates risk exposures.
Answer: A.
●● Which of the following has a pervasive effect on the basic
components of a comprehensive framework of internal control?
A. Control environment
B. Risk assessment
C. Control activities
D. Monitoring
Answer: A.
●● "A finance officer manages public finances transparently" is an
example from which principle in the GFOA Code of Ethics?
