CPFO GOVERNMENTAL ACCOUNTING, AUDITING AND FINANCIAL REPORTING PRACTICE TEST

CPFO GOVERNMENTALACCOUNTING,AUDITING v v v




ANDFINANCIALREPORTINGPRACTICETEST v v v v




QUESTIONS WITH CORRECT ANSWERS 2025
v v v v v




Ultimate responsibility for internal controls rests with.
v v v v v v




A. Management
v




B. The governing board
v v v




C. The external auditor
v v v




D. The audit committee - CORRECT ANSWER -
v v v v v v v




B. The governing board. While management is primarily responsible for internal control, the governing
v v v v v v v v v v v v v




body remains ultimately responsible for ensuring that mangement meets its responsibilities in this reg ard.
v v v v v v v v v v v v v v v




P 734-735
v v




Which of the following types of fraud is least likely in an environment where cash receipting and recor d
v v v v v v v v v v v v v v v v v v




keeping for accounts receivable are adequately segregated?
v v v v v v v




A. Lapping
v




B. Pilfering
v




C. False claims
v v




D. Charge-off fraud - CORRECT ANSWER -A. Lapping.
v v v v v v v




What is the best way to select a sample to test internal controls?
v v v v v v v v v v v v




A. Block sampling
v v




B. Internal sampling
v v




C. Random sampling
v v




D. Blind sampling - CORRECT ANSWER -C. Random Sampling
v v v v v v v v




All of the following are examples of inherent riskGexcept:
v v v v v v v v




A. Size v




B. Complexity
v




C. Cash receipts
v v

, D. Prior problems - CORRECT ANSWER -
v v v v v v




A. Size. There are 5 situations commonly recognized as inherent risk.
v v v v v v v v v v




1. Complexity

2. Cash receipts v




3. Direct payments to third-party beneficiaries
v v v v




4. Hsitory of prior problems v v v




5. History of prior unresponsiveness to identical control deficiencies P
v v v v v v v v




v 740



Which is not an example of a control procedure?
v v v v v v v v




A. Authorization

B. Segregation of incompatible duties v v v




C. Analytical review v




D. Mandatory holidays - CORRECT ANSWER -D. Mandatory holidays. There are 7 categories of control-
v v v v v v v v v v v v v




related policies.
v v




1. Procedures to ensure that transactions are properly authorized v v v v v v v




2. Control to secure assets and accounting records
v v v v v v




3. Segregation of incompatible duties v v v




4. Periodic reconciliations v




5. Periodic verificatins v




6. Analytical review of accounting data for reasonablenessv v v v v v




7. Properly designed records v v




Which of the following is the most important element in a comprehensive framework of internal contr ols?
v v v v v v v v v v v v v v v v




A. Monitoring

B. Risk assessment
v




C. Communication

D. Control environment - CORRECT ANSWER - v v v v v




D. Control environment. It must provide a favorable control environment. P 736.
v v v v v v v v v v v