CGFM TEST 3 (2025) ACTUAL EXAM COMPREHENSIVE QUESTIONS
CGFM TEST 3
AND VERIFIED ACCURATE SOLUTION (DETAILED & ELABORATED)
Study online at https://quizlet.com/_3ck41g
|GET IT 100% ACCURATE!! 2025 TEST!!
1. Three Broad Gov- 1) Current Operations
ernment Spending 2) Capital Outlays
Purposes 3) Debt Service
2. Present Value Analy- Determines what $$ Rec'd in Future is Worth Today
sis - Three Compo-
nents 1) inflation component - year over year loss in value
2) enterprise component - inherent risk
3) unique component -
3. Budget Accounting Requires the head of each federal agency to establish and maintain I/C's.
and Procedures Act
of 1950
4. Federal Managers requires the head of each agency to evaluate controls on an annual basis,
Financial Integrity reporting any weakness along with a corrective action plan
Act of 1982 (FMFIA) ** (resulted in the "green book") **
5. Single Audit Act of requires the audit of state and local governments and npo's receiving federal
1984 (amended in funding
1996)
6. Sarbanes Oxley Act Placed restrictions on publicly traded companies following Enron scandal.
of 2002 Requires mgmt to report on I/C's for financial reporting in its annual report.
7. (ICOFR) Internal Controls Over Financial Reporting
8. Chief Financial Of- required 10 federal agencies to produce audited annual financial reports that
ficers Act of 1990 included a report on internal control.
(CFO Act):
expanded in 1994 by GMRA
9. INTERNAL CON- systems and techniques managers use to provide reasonable assurance that
TROLS agency objectives met in an effective/efficient manner, in compliance with
, CGFM TEST 3
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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 exis-
tence is known).
10. TIME VALUE OF Used in consideration of capital budgeting
MONEY
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
11. Flowcharting Iterative process requiring changes throughout development, each step rep-
resents a decision, also used to evaluate processes for effective internal
controls
12. Earned Value Man- project mgmt system that weighs both schedule and cost performance to
agement (EVM) determine if a project is delivering expected results on time and within
budget
13. 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
14. Correlation Coeffi- Determines the degree of accuracy the analysis (variables) can be used to
cient predict results (1=perfect correlation
, CGFM TEST 3
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.85 considered reliable for forecasting)
15. Multiple Regres- analyzes multiple IV's and look for items with the highest correlation coeffi-
sions cient as being the most like predictors
16. Limits of Regression Data ranges must be relevant (e.g., sample size might be too small to project
Analysis 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
17. Data Analytics inspecting, cleaning, transforming, and modeling data to find useful infor-
mation, conclusions, and support decision making
18. Data Mining (Predictive) sorting through large data sets and using filters and algorithms
to pick out relationships
** See strengths and weaknesses
19. Predictive Analytics data collected through a variety of techniques to analyze current and historical
facts to make predictions about future events
20. Data Mining * Strengths
Strengths and Analyst is able to review complete data sets
Weaknesses 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
21.
, CGFM TEST 3
Study online at https://quizlet.com/_3ck41g
Starting a Data Ana- Collaborate with other agencies for data collection and sharing
lytic Program 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
22. Forensic Auditing examination of financial information that is likely to be used for the investi-
gation and prosecution of financial crimes
Need to have knowledge of basic legal principles, standards for discovery
23. Steps for Forensic a) data collection,
Auditing b) data preparation,
c) data analysis,
and d) reporting
24. Benford Digital based on observation that more transactions begin with the number one than
Analysis 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
25. Competitive Source Used to determine if there is a benefit to contracting government services to
Analysis the private sector:
1) Conduct a management study
2) Prepare a performance work statement - defines the expected outputs/re-
sults
CGFM TEST 3
AND VERIFIED ACCURATE SOLUTION (DETAILED & ELABORATED)
Study online at https://quizlet.com/_3ck41g
|GET IT 100% ACCURATE!! 2025 TEST!!
1. Three Broad Gov- 1) Current Operations
ernment Spending 2) Capital Outlays
Purposes 3) Debt Service
2. Present Value Analy- Determines what $$ Rec'd in Future is Worth Today
sis - Three Compo-
nents 1) inflation component - year over year loss in value
2) enterprise component - inherent risk
3) unique component -
3. Budget Accounting Requires the head of each federal agency to establish and maintain I/C's.
and Procedures Act
of 1950
4. Federal Managers requires the head of each agency to evaluate controls on an annual basis,
Financial Integrity reporting any weakness along with a corrective action plan
Act of 1982 (FMFIA) ** (resulted in the "green book") **
5. Single Audit Act of requires the audit of state and local governments and npo's receiving federal
1984 (amended in funding
1996)
6. Sarbanes Oxley Act Placed restrictions on publicly traded companies following Enron scandal.
of 2002 Requires mgmt to report on I/C's for financial reporting in its annual report.
7. (ICOFR) Internal Controls Over Financial Reporting
8. Chief Financial Of- required 10 federal agencies to produce audited annual financial reports that
ficers Act of 1990 included a report on internal control.
(CFO Act):
expanded in 1994 by GMRA
9. INTERNAL CON- systems and techniques managers use to provide reasonable assurance that
TROLS agency objectives met in an effective/efficient manner, in compliance with
, CGFM TEST 3
Study online at https://quizlet.com/_3ck41g
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 exis-
tence is known).
10. TIME VALUE OF Used in consideration of capital budgeting
MONEY
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
11. Flowcharting Iterative process requiring changes throughout development, each step rep-
resents a decision, also used to evaluate processes for effective internal
controls
12. Earned Value Man- project mgmt system that weighs both schedule and cost performance to
agement (EVM) determine if a project is delivering expected results on time and within
budget
13. 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
14. Correlation Coeffi- Determines the degree of accuracy the analysis (variables) can be used to
cient predict results (1=perfect correlation
, CGFM TEST 3
Study online at https://quizlet.com/_3ck41g
.85 considered reliable for forecasting)
15. Multiple Regres- analyzes multiple IV's and look for items with the highest correlation coeffi-
sions cient as being the most like predictors
16. Limits of Regression Data ranges must be relevant (e.g., sample size might be too small to project
Analysis 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
17. Data Analytics inspecting, cleaning, transforming, and modeling data to find useful infor-
mation, conclusions, and support decision making
18. Data Mining (Predictive) sorting through large data sets and using filters and algorithms
to pick out relationships
** See strengths and weaknesses
19. Predictive Analytics data collected through a variety of techniques to analyze current and historical
facts to make predictions about future events
20. Data Mining * Strengths
Strengths and Analyst is able to review complete data sets
Weaknesses 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
21.
, CGFM TEST 3
Study online at https://quizlet.com/_3ck41g
Starting a Data Ana- Collaborate with other agencies for data collection and sharing
lytic Program 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
22. Forensic Auditing examination of financial information that is likely to be used for the investi-
gation and prosecution of financial crimes
Need to have knowledge of basic legal principles, standards for discovery
23. Steps for Forensic a) data collection,
Auditing b) data preparation,
c) data analysis,
and d) reporting
24. Benford Digital based on observation that more transactions begin with the number one than
Analysis 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
25. Competitive Source Used to determine if there is a benefit to contracting government services to
Analysis the private sector:
1) Conduct a management study
2) Prepare a performance work statement - defines the expected outputs/re-
sults
