AGA CGFM Section III: Government Management Cycle
Essential Test Toolkit Exam Questions and Approved for
credibility solution; Latest 2024/2025
AICPA -correct answer American Institute of Certified Public Accountants;
establishes standards for financial audits that are used by many non-publicly
traded companies and not-for-profit entities
GAAS - correct answer Generally Accepted Auditing Standards
PCAOB - correct answer Public Company Accounting Oversight Board;
establishes standards for financial audits of publicly traded companies
GAGAS - correct answer Generally Accepted Government Auditing Standards
GAO - correct answer Government Accountability Office - the investigative arm
of the US Congress
Types of Audit Engagements - correct answer Financial audits, performance
audits, and attestation engagements
Financial Audits - correct answer Primarily concerned with providing reasonable
assurance on whether financial statements are prepared fairly in conformity with
GAAP. Other objectives include: auditing compliance with regulations to federal
award expenditures in conjunction with a financial statement audit
Attestation Audits - correct answer Concern examining, reviewing or performing
agreed-upon procedures on a limited subject matter, or an assertion about a
limited subject matter, and reporting on the results. The subject matter may be
financial or nonfinanical
, Performance Audits - correct answer Entail an examination of the performance
and management of a program against objective criteria:
- Program effectiveness and results audits address the effectiveness of a
program and typically measure the extent to which a program is achieving its
goals and objectives
- Economy and efficiency audit objectives concern whether an entity is acquiring,
protecting, and using its resources in the most productive manner to achieve
program objectives
- Program effectiveness and results audit objectives, as well as economy and
efficiency audit objectives, are often interrelated and may be concurrently
addressed in this type of audit
External Financial Audit - correct answer Provides an independent examination
of an entity's financial statements. Have long been required for business
corporations in the private sector, but are a more recent development in
government agencies, especially at the national level
Internal Audits - correct answer A management process, usually conducted by
staff personnel, usually less independence from management, yet they should
have a level of independence from the process being audited
Operational Audit - correct answer Often used to describe internal audits that
are conducted for the same purpose as external economy and efficiency audits
Government Management Model Phases - correct answer 1. Planning
2. Programming
3. Budgeting
4. Operations
5. Accounting
6. Reporting
7. Auditing
Essential Test Toolkit Exam Questions and Approved for
credibility solution; Latest 2024/2025
AICPA -correct answer American Institute of Certified Public Accountants;
establishes standards for financial audits that are used by many non-publicly
traded companies and not-for-profit entities
GAAS - correct answer Generally Accepted Auditing Standards
PCAOB - correct answer Public Company Accounting Oversight Board;
establishes standards for financial audits of publicly traded companies
GAGAS - correct answer Generally Accepted Government Auditing Standards
GAO - correct answer Government Accountability Office - the investigative arm
of the US Congress
Types of Audit Engagements - correct answer Financial audits, performance
audits, and attestation engagements
Financial Audits - correct answer Primarily concerned with providing reasonable
assurance on whether financial statements are prepared fairly in conformity with
GAAP. Other objectives include: auditing compliance with regulations to federal
award expenditures in conjunction with a financial statement audit
Attestation Audits - correct answer Concern examining, reviewing or performing
agreed-upon procedures on a limited subject matter, or an assertion about a
limited subject matter, and reporting on the results. The subject matter may be
financial or nonfinanical
, Performance Audits - correct answer Entail an examination of the performance
and management of a program against objective criteria:
- Program effectiveness and results audits address the effectiveness of a
program and typically measure the extent to which a program is achieving its
goals and objectives
- Economy and efficiency audit objectives concern whether an entity is acquiring,
protecting, and using its resources in the most productive manner to achieve
program objectives
- Program effectiveness and results audit objectives, as well as economy and
efficiency audit objectives, are often interrelated and may be concurrently
addressed in this type of audit
External Financial Audit - correct answer Provides an independent examination
of an entity's financial statements. Have long been required for business
corporations in the private sector, but are a more recent development in
government agencies, especially at the national level
Internal Audits - correct answer A management process, usually conducted by
staff personnel, usually less independence from management, yet they should
have a level of independence from the process being audited
Operational Audit - correct answer Often used to describe internal audits that
are conducted for the same purpose as external economy and efficiency audits
Government Management Model Phases - correct answer 1. Planning
2. Programming
3. Budgeting
4. Operations
5. Accounting
6. Reporting
7. Auditing
