CDFM MODULE 3- 200 IDEAL QUESTIONS AND CORRECT
ANSWERS FOR CDFM MODULE 3 EXAM PREP COMPLETE
QUESTIONS WITH 100% VERIFIED ANSWERS
1. What type of audit determines whether the entity is acquiring,
using, and protecting its resources economically and efficiently, and
whether the entity's programs are achieving the desired results or
benefits?
A) Financial Audit
B) Compliance Audit
C) Performance Audit
D) Internal Control Audit
ANSWER: C
2. The auditor is restricted access to essential data necessary to satisfy
the audit objective. What type of impairment would this be?
A) Internal Impairment
B) External Impairment
C) Structural Impairment
D) Management Impairment
ANSWER: B
3. Which type of audit determines whether the financial information
is presented in accordance with established criteria, the entity has
adhered to specific financial compliance requirements, and the
entity's internal control structure over financial reporting is suitably
designed?
A) Performance Audit
,B) Financial Audit
C) Compliance Audit
D) Operational Audit
ANSWER: B
4. What does Title 31 of the United States Code provide?
A) Statutory authority for the organization of the Department of
Defense
B) Statutory authority for the use, control, and accountability of public
funds
C) Statutory authority for federal procurement and acquisitions
D) Statutory authority for the federal budget process
ANSWER: B
5. The established rule is that the expenditure of public funds is
proper only when authorized by Congress, not that public funds may
be expended unless prohibited by Congress. This is known as:
A) The Purpose Statute
B) The Necessary Expense Doctrine
C) The Basic Axiom of Fiscal Law
D) The Bona Fide Needs Rule
ANSWER: C
6. What are the sources of Fiscal Law?
A) The Constitution, Authorization Acts, Appropriation Acts, General
Statutes, and Comptroller General Decisions & Courts
B) Only the Constitution and Appropriation Acts
C) Only Authorization Acts and General Statutes
D) Only Comptroller General Decisions and Courts
ANSWER: A
,7. Which part of the Constitution empowers Congress to pass bills for
the raising of revenue and delineates how bills will pass from Congress
to the President for signature or veto?
A) Article 1, Section 8, Clause 1
B) Article 1, Section 7
C) Article 1, Section 9, Clause 7
D) Article 2, Section 2
ANSWER: B
8. Which part of the Constitution empowers Congress to collect taxes?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 1, Section 9, Clause 7
D) Article 2, Section 1
ANSWER: B
9. Which part of the Constitution requires appropriations in law
before money may be spent from the Treasury?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 1, Section 9, Clause 7
D) Article 2, Section 2
ANSWER: C
10. What did the Budget and Accounting Act of 1921 provide?
A) Required the President to submit an annual budget to Congress,
created a budget office for the President (now OMB), and established
the General Accounting Office (now GAO)
B) Established the House and Senate Budget Committees
C) Created the Congressional Budget Office
, D) Established the Federal Reserve System
ANSWER: A
11. This law governs the congressional budget process, defines key
budget terms, and establishes the House and Senate Budget
committees and the Congressional Budget Office (CBO).
A) Budget and Accounting Act of 1921
B) Congressional Budget Act of 1974 (P.L. 93-344)
C) Balanced Budget and Emergency Deficit Control Act of 1985 (P.L. 99-
177)
D) Government Performance and Results Act of 1993
ANSWER: B
12. This law prescribes rules and procedures designed to constrain
spending and receipts legislation.
A) Congressional Budget Act of 1974
B) Congressional Balanced Budget and Emergency Deficit Control Act of
1985 (P.L. 99-177)
C) Budget and Accounting Act of 1921
D) Government Management Reform Act of 1994
ANSWER: B
13. These sections prescribe rules and procedures for budget
execution. The overarching statutory requirement for the use, control,
and accountability of funds are found here.
A) 31 USC 13 and 15
B) 31 USC 1301
C) 31 USC 1341
D) 31 USC 1501
ANSWER: A
ANSWERS FOR CDFM MODULE 3 EXAM PREP COMPLETE
QUESTIONS WITH 100% VERIFIED ANSWERS
1. What type of audit determines whether the entity is acquiring,
using, and protecting its resources economically and efficiently, and
whether the entity's programs are achieving the desired results or
benefits?
A) Financial Audit
B) Compliance Audit
C) Performance Audit
D) Internal Control Audit
ANSWER: C
2. The auditor is restricted access to essential data necessary to satisfy
the audit objective. What type of impairment would this be?
A) Internal Impairment
B) External Impairment
C) Structural Impairment
D) Management Impairment
ANSWER: B
3. Which type of audit determines whether the financial information
is presented in accordance with established criteria, the entity has
adhered to specific financial compliance requirements, and the
entity's internal control structure over financial reporting is suitably
designed?
A) Performance Audit
,B) Financial Audit
C) Compliance Audit
D) Operational Audit
ANSWER: B
4. What does Title 31 of the United States Code provide?
A) Statutory authority for the organization of the Department of
Defense
B) Statutory authority for the use, control, and accountability of public
funds
C) Statutory authority for federal procurement and acquisitions
D) Statutory authority for the federal budget process
ANSWER: B
5. The established rule is that the expenditure of public funds is
proper only when authorized by Congress, not that public funds may
be expended unless prohibited by Congress. This is known as:
A) The Purpose Statute
B) The Necessary Expense Doctrine
C) The Basic Axiom of Fiscal Law
D) The Bona Fide Needs Rule
ANSWER: C
6. What are the sources of Fiscal Law?
A) The Constitution, Authorization Acts, Appropriation Acts, General
Statutes, and Comptroller General Decisions & Courts
B) Only the Constitution and Appropriation Acts
C) Only Authorization Acts and General Statutes
D) Only Comptroller General Decisions and Courts
ANSWER: A
,7. Which part of the Constitution empowers Congress to pass bills for
the raising of revenue and delineates how bills will pass from Congress
to the President for signature or veto?
A) Article 1, Section 8, Clause 1
B) Article 1, Section 7
C) Article 1, Section 9, Clause 7
D) Article 2, Section 2
ANSWER: B
8. Which part of the Constitution empowers Congress to collect taxes?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 1, Section 9, Clause 7
D) Article 2, Section 1
ANSWER: B
9. Which part of the Constitution requires appropriations in law
before money may be spent from the Treasury?
A) Article 1, Section 7
B) Article 1, Section 8, Clause 1
C) Article 1, Section 9, Clause 7
D) Article 2, Section 2
ANSWER: C
10. What did the Budget and Accounting Act of 1921 provide?
A) Required the President to submit an annual budget to Congress,
created a budget office for the President (now OMB), and established
the General Accounting Office (now GAO)
B) Established the House and Senate Budget Committees
C) Created the Congressional Budget Office
, D) Established the Federal Reserve System
ANSWER: A
11. This law governs the congressional budget process, defines key
budget terms, and establishes the House and Senate Budget
committees and the Congressional Budget Office (CBO).
A) Budget and Accounting Act of 1921
B) Congressional Budget Act of 1974 (P.L. 93-344)
C) Balanced Budget and Emergency Deficit Control Act of 1985 (P.L. 99-
177)
D) Government Performance and Results Act of 1993
ANSWER: B
12. This law prescribes rules and procedures designed to constrain
spending and receipts legislation.
A) Congressional Budget Act of 1974
B) Congressional Balanced Budget and Emergency Deficit Control Act of
1985 (P.L. 99-177)
C) Budget and Accounting Act of 1921
D) Government Management Reform Act of 1994
ANSWER: B
13. These sections prescribe rules and procedures for budget
execution. The overarching statutory requirement for the use, control,
and accountability of funds are found here.
A) 31 USC 13 and 15
B) 31 USC 1301
C) 31 USC 1341
D) 31 USC 1501
ANSWER: A
