CDFM, Module 1.4 Management's Responsibility for
Internal Control questions with verified answers
A deficiency should be reported if Ans✓✓✓ It is or should be of interest to the
next level of management.
A determination that a deficiency has been corrected should be made only when
Ans✓✓✓ Sufficient corrective actions have been taken and the desired results
achieved.
A material weakness in DOD may result from Ans✓✓✓ A lack of an applicable
control, or more frequently, an inadequate compliance with existing controls.
A negative statement Ans✓✓✓ "I do not have reasonable assurance that..."
A qualified statement of assurance Ans✓✓✓ "I have reasonable assurance
that...except for..."
An unqualified statement of assurance Ans✓✓✓ "I have reasonable assurance
that..."
Annual Statement of Assurance Ans✓✓✓ 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.
, Annual Statements of Assurance will be submitted to OMB by Ans✓✓✓ The 45th
day following the end of the fiscal year.
Assessable Unit Ans✓✓✓ Any organizational, functional, programmatic, or other
applicable subdivision capable of being evaluated by management control
assessment procedures.
Assessable Unit Managers Ans✓✓✓ Includes top-level managers, down through
operational managers, of all programs and activities in which funds, property, and
other assets must be safeguarded against fraud, waste, or mismanagement and in
which operations and resources must be managed efficiently and effectively.
Continuous ___ and ____ provides the basis for the agency head's annual
Integrity Act assessment and report. Ans✓✓✓ Monitoring; evaluating
Control Activities Ans✓✓✓ The policies, procedures, techniques, and
mechanisms that enforce management's directives, such as the process of
adhering to requirements for budget development and execution. They help
ensure that actions are taken to address risks and are an integral part of an
entity's planning, implementing, reviewing, and accounting processes to ensure
stewardship of government resources and achieve effective results.
Control Deficiency (General Internal Control) Ans✓✓✓ Exists when the design or
operation of a control does not allow management or employees, in the normal
course of performing their assigned function, to prevent or detect fraud, waste,
abuse, or mismanagement on a timely basis.
Control Environment Ans✓✓✓ Management and employees should establish and
maintain an environment throughout the organization that sets a positive and
Internal Control questions with verified answers
A deficiency should be reported if Ans✓✓✓ It is or should be of interest to the
next level of management.
A determination that a deficiency has been corrected should be made only when
Ans✓✓✓ Sufficient corrective actions have been taken and the desired results
achieved.
A material weakness in DOD may result from Ans✓✓✓ A lack of an applicable
control, or more frequently, an inadequate compliance with existing controls.
A negative statement Ans✓✓✓ "I do not have reasonable assurance that..."
A qualified statement of assurance Ans✓✓✓ "I have reasonable assurance
that...except for..."
An unqualified statement of assurance Ans✓✓✓ "I have reasonable assurance
that..."
Annual Statement of Assurance Ans✓✓✓ 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.
, Annual Statements of Assurance will be submitted to OMB by Ans✓✓✓ The 45th
day following the end of the fiscal year.
Assessable Unit Ans✓✓✓ Any organizational, functional, programmatic, or other
applicable subdivision capable of being evaluated by management control
assessment procedures.
Assessable Unit Managers Ans✓✓✓ Includes top-level managers, down through
operational managers, of all programs and activities in which funds, property, and
other assets must be safeguarded against fraud, waste, or mismanagement and in
which operations and resources must be managed efficiently and effectively.
Continuous ___ and ____ provides the basis for the agency head's annual
Integrity Act assessment and report. Ans✓✓✓ Monitoring; evaluating
Control Activities Ans✓✓✓ The policies, procedures, techniques, and
mechanisms that enforce management's directives, such as the process of
adhering to requirements for budget development and execution. They help
ensure that actions are taken to address risks and are an integral part of an
entity's planning, implementing, reviewing, and accounting processes to ensure
stewardship of government resources and achieve effective results.
Control Deficiency (General Internal Control) Ans✓✓✓ Exists when the design or
operation of a control does not allow management or employees, in the normal
course of performing their assigned function, to prevent or detect fraud, waste,
abuse, or mismanagement on a timely basis.
Control Environment Ans✓✓✓ Management and employees should establish and
maintain an environment throughout the organization that sets a positive and
