CDFM, Module 1.4 Exam Questions
with Verified Solutions
Internal Control Program - ANSWER-The DOD established this to comply with the
requirements of the Federal Managers' Financial Integrity Act of 1982 as codified in 31
U.S.C. 3512.
Internal Controls - ANSWER-"the organization, policies, and procedures that help
program and financial managers to achieve results and safeguard the integrity of their
programs."
Federal Employees - ANSWER-Who must ensure that government resources are used
efficiently and effectively to achieve intended program results?
Federal Managers Financial Integrity Act of 1982 - ANSWER-Amended the Accounting
and Auditing Act of 1950 to require Federal agencies to establish internal accounting
and administrative controls that make it easier to: Prevent waste or misuse of agency
funds or property; assure the accountability of assets.
Federal Managers Financial Integrity Act of 1982 - ANSWER-Requires OMB Director to
establish guidelines for internal controls program.
Federal Managers Financial Integrity Act of 1982 - ANSWER-Required the head of each
agency to evaluate internal controls annually and submit report to Congress and the
President.
OMB Circular A-123 - ANSWER-Requires agencies and individual Federal managers
to: Develop and implement cost-effective internal controls for results-oriented
management; Assess the adequacy of internal controls in Federal programs and
operations; Identify needed improvements; Take corresponding corrective action;
Report annually on internal controls.
Reasonable Assurance. - ANSWER-Internal controls over financial reporting are
designed to provide _____ ______ about the following items:
Internal Controls - ANSWER-These insure neither the success of the agency programs,
nor the absence of waste, fraud, and mismanagement, but they are a means of
managing the risk associated with Federal programs and operations.
5 GAO Standards for Internal Controls in the Federal Government - ANSWER-Control
Environment.
, Risk Assessment.
Information and Communications.
Monitoring.
Existing Control Activities.
DOD Level - ANSWER-When a weakness is serious enough to merit OSD attention or
exists in a majority of DoD components.
45th day following the end of the fiscal year. - ANSWER-Annual Statements of
Assurance will be submitted to OMB by?
Reasonable assurance and material weakness - ANSWER-The general Statement of
Assurance will include the following:
Reasonable Assurance - ANSWER-These statements represent the agency head's
informed judgment as to the overall adequacy and effectiveness of management
controls within the agency.
Agency Head - ANSWER-The statements of assurance must be signed by?
DODI 5010.40 - ANSWER-Directs each DOD component to develop an Internal Control
Program that: (1) Establish Internal Control process. (2) Segment into assessable units.
(3) Evaluate effectiveness of internal controls. (4) Establish process to identify, report,
and correct. weaknesses
Identification - ANSWER-DOD components may identify weaknesses in their internal
controls through a variety of sources that should include but not be limited to audits,
inspections, investigations, management assessments, creditable information of
nongovernmental origin, staff meetings, and management control evaluations.
Correction Validation - ANSWER-The last milestone in each corrective action plan shall
include? Corrective Action Plans should be developed for all material weaknesses, and
progress in implementing these plans should be assessed periodically and reported to
management.
Annual Statement of Assurance - ANSWER-DOD components are required to submit
annually. This also includes material weaknesses and the plan to correct them and be
consistent with annual Under Secretary of Defense (Comptroller) guidance. Must be
signed by the head of the DOD component or the principal deputy and submitted to the
Secretary of Defense by October 1 of each year.
1 October - ANSWER-When does the Annual Statement of Assurance need to be
submitted to the Secretary of Defense?
with Verified Solutions
Internal Control Program - ANSWER-The DOD established this to comply with the
requirements of the Federal Managers' Financial Integrity Act of 1982 as codified in 31
U.S.C. 3512.
Internal Controls - ANSWER-"the organization, policies, and procedures that help
program and financial managers to achieve results and safeguard the integrity of their
programs."
Federal Employees - ANSWER-Who must ensure that government resources are used
efficiently and effectively to achieve intended program results?
Federal Managers Financial Integrity Act of 1982 - ANSWER-Amended the Accounting
and Auditing Act of 1950 to require Federal agencies to establish internal accounting
and administrative controls that make it easier to: Prevent waste or misuse of agency
funds or property; assure the accountability of assets.
Federal Managers Financial Integrity Act of 1982 - ANSWER-Requires OMB Director to
establish guidelines for internal controls program.
Federal Managers Financial Integrity Act of 1982 - ANSWER-Required the head of each
agency to evaluate internal controls annually and submit report to Congress and the
President.
OMB Circular A-123 - ANSWER-Requires agencies and individual Federal managers
to: Develop and implement cost-effective internal controls for results-oriented
management; Assess the adequacy of internal controls in Federal programs and
operations; Identify needed improvements; Take corresponding corrective action;
Report annually on internal controls.
Reasonable Assurance. - ANSWER-Internal controls over financial reporting are
designed to provide _____ ______ about the following items:
Internal Controls - ANSWER-These insure neither the success of the agency programs,
nor the absence of waste, fraud, and mismanagement, but they are a means of
managing the risk associated with Federal programs and operations.
5 GAO Standards for Internal Controls in the Federal Government - ANSWER-Control
Environment.
, Risk Assessment.
Information and Communications.
Monitoring.
Existing Control Activities.
DOD Level - ANSWER-When a weakness is serious enough to merit OSD attention or
exists in a majority of DoD components.
45th day following the end of the fiscal year. - ANSWER-Annual Statements of
Assurance will be submitted to OMB by?
Reasonable assurance and material weakness - ANSWER-The general Statement of
Assurance will include the following:
Reasonable Assurance - ANSWER-These statements represent the agency head's
informed judgment as to the overall adequacy and effectiveness of management
controls within the agency.
Agency Head - ANSWER-The statements of assurance must be signed by?
DODI 5010.40 - ANSWER-Directs each DOD component to develop an Internal Control
Program that: (1) Establish Internal Control process. (2) Segment into assessable units.
(3) Evaluate effectiveness of internal controls. (4) Establish process to identify, report,
and correct. weaknesses
Identification - ANSWER-DOD components may identify weaknesses in their internal
controls through a variety of sources that should include but not be limited to audits,
inspections, investigations, management assessments, creditable information of
nongovernmental origin, staff meetings, and management control evaluations.
Correction Validation - ANSWER-The last milestone in each corrective action plan shall
include? Corrective Action Plans should be developed for all material weaknesses, and
progress in implementing these plans should be assessed periodically and reported to
management.
Annual Statement of Assurance - ANSWER-DOD components are required to submit
annually. This also includes material weaknesses and the plan to correct them and be
consistent with annual Under Secretary of Defense (Comptroller) guidance. Must be
signed by the head of the DOD component or the principal deputy and submitted to the
Secretary of Defense by October 1 of each year.
1 October - ANSWER-When does the Annual Statement of Assurance need to be
submitted to the Secretary of Defense?
