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CGFM EXAM 3 NEWEST 2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which organization publishes Internal Standards for the
Professional Practice of Internal Auditing?
a. the Government Accountability Office
b. The Institute of Internal Auditors
c. The Governmental Accounting Standards Board
d. The office of Management and Budget - ANSWER-b. The
Institute of Internal Auditors. The GAO publishes standards on
government auditing. The GASB publishes standards on
accounting and reporting. OMB does not publish accounting
standards, but does provide guidance on other matters.
Which of the following is required for performance measurement
to function effectively?
a. an encumbrance accounting system
b. an established goal or target
c. quantifiable indicators of what a program is doing or achieving
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d. a cash flow statement - ANSWER-b. For performance
measurement to function effectively, there must be an established
goal or target against which actual performance can be
measured. None of the other three choices are relevant to
measuring performance.
From the perspective of the citizenry, what is the purpose of
performance reporting?
a. to see if the entity reports in accordance with GAAP
b. to see if the entity's total expenditures do not exceed revenues
c. to help citizens assess governments' results
d. to see if the financial statements have been audited -
ANSWER-c. One of the major purposes of performance reporting
is to enable citizens to assess the accountability of public officials.
Citizen concern with the other three choices in this question can
be answered through financial reporting, as distinguished from
performance reporting.
Which of the following statements is false regarding the uses of
performance measurement and reporting?
a. It helps decision-makers in the resource allocation process
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b. It helps in assessing efficiency, but not effectiveness
c. It helps citizens assess government performance
d. It represents management's assertion regarding performance -
ANSWER-b. Performance reporting, which represents
management's assertion regarding an entity's performance, can
help the user of the report assess both efficiency and
effectiveness. Performance measurement also helps decision-
makers in allocating resources
What is the difference between economy and efficiency?
a. there is no difference; the two terms may be used
interchangeably
b. Economy is a resource-usage concept, and efficiency relates to
the extent to which predetermined goals are achieved
c. Economy relates to the quality of outputs, and efficiency relates
to the quantity of outputs
d. Both are least-cost notions, but economy relates to the
acquisition of resources and efficiency relates to the usage of
resources - ANSWER-d. Although the terms economy and
efficiency tend to be used in the same breath, they have different
meanings. Economy is concerned with acquiring resource at the
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least cost commensurate with needs, and efficiency is concerned
with using resources at the least cost.
Which of the following pairs of items are needed most when an
entity manages for results?
a. a statement of goals and objectives and a performance
measurement system
b. a mission statement and an audited financial statement
c. a procedures manual and GAAP-based financial statements
d. an executive budget office and a legislative budget office -
ANSWER-a. Managing for results requires both a statement of
objectives and a system for measuring the extent to which the
stated objectives have been achieved. Audited financial
statements and GAAP-based statements provide assurances
regarding financial measures used in performance measurement,
but they are not central to managing for results. Further, many
measures of results are nonfinancial in nature.
How can input indicators be expressed in performance
measurement?
CGFM EXAM 3 NEWEST 2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
Which organization publishes Internal Standards for the
Professional Practice of Internal Auditing?
a. the Government Accountability Office
b. The Institute of Internal Auditors
c. The Governmental Accounting Standards Board
d. The office of Management and Budget - ANSWER-b. The
Institute of Internal Auditors. The GAO publishes standards on
government auditing. The GASB publishes standards on
accounting and reporting. OMB does not publish accounting
standards, but does provide guidance on other matters.
Which of the following is required for performance measurement
to function effectively?
a. an encumbrance accounting system
b. an established goal or target
c. quantifiable indicators of what a program is doing or achieving
,2|Page
d. a cash flow statement - ANSWER-b. For performance
measurement to function effectively, there must be an established
goal or target against which actual performance can be
measured. None of the other three choices are relevant to
measuring performance.
From the perspective of the citizenry, what is the purpose of
performance reporting?
a. to see if the entity reports in accordance with GAAP
b. to see if the entity's total expenditures do not exceed revenues
c. to help citizens assess governments' results
d. to see if the financial statements have been audited -
ANSWER-c. One of the major purposes of performance reporting
is to enable citizens to assess the accountability of public officials.
Citizen concern with the other three choices in this question can
be answered through financial reporting, as distinguished from
performance reporting.
Which of the following statements is false regarding the uses of
performance measurement and reporting?
a. It helps decision-makers in the resource allocation process
,3|Page
b. It helps in assessing efficiency, but not effectiveness
c. It helps citizens assess government performance
d. It represents management's assertion regarding performance -
ANSWER-b. Performance reporting, which represents
management's assertion regarding an entity's performance, can
help the user of the report assess both efficiency and
effectiveness. Performance measurement also helps decision-
makers in allocating resources
What is the difference between economy and efficiency?
a. there is no difference; the two terms may be used
interchangeably
b. Economy is a resource-usage concept, and efficiency relates to
the extent to which predetermined goals are achieved
c. Economy relates to the quality of outputs, and efficiency relates
to the quantity of outputs
d. Both are least-cost notions, but economy relates to the
acquisition of resources and efficiency relates to the usage of
resources - ANSWER-d. Although the terms economy and
efficiency tend to be used in the same breath, they have different
meanings. Economy is concerned with acquiring resource at the
, 4|Page
least cost commensurate with needs, and efficiency is concerned
with using resources at the least cost.
Which of the following pairs of items are needed most when an
entity manages for results?
a. a statement of goals and objectives and a performance
measurement system
b. a mission statement and an audited financial statement
c. a procedures manual and GAAP-based financial statements
d. an executive budget office and a legislative budget office -
ANSWER-a. Managing for results requires both a statement of
objectives and a system for measuring the extent to which the
stated objectives have been achieved. Audited financial
statements and GAAP-based statements provide assurances
regarding financial measures used in performance measurement,
but they are not central to managing for results. Further, many
measures of results are nonfinancial in nature.
How can input indicators be expressed in performance
measurement?
