CGFM Test 3 2025 Questions and
Answers
A-76 - ANSWER-Directive issued by OMB that establishes federal policy for the
competition of commercial activities
Abuse - ANSWER-behavior that is deficient or improper when compared with
behavior that a prudent person would consider reasonable and necessary business
practice given the facts and circumstances
Account cleanup - ANSWER-process of researching, analyzing and evaluating old
accounts in an accounting system to determine if they should be terminated or
continued, and terminating those that meet the termination criteria
Accountability - ANSWER-A process involving the rendering of an account by
public officials to the citizenry and other stakeholders, regarding such matters as
compliance to the laws, financial probity, efficient performance, and effective
service delivery. For it to function there need to be benchmarks against which
performance can be measured
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,Administrative Offset - ANSWER-the process of collecting delinquent debt by
offsetting payments due to the debtor under other applicable government
programs like loans, grants or contracts
Analytical tests - ANSWER-analyzing information about the auditee and are
performed at the start of each audit
Audit risk - ANSWER-combination of inherent risk, control risk and detection risk
Automated Clearinghouse System - ANSWER-authorizes the government to
automatically deposit to or withdraw from a personal or corporate bank account
Benford Digital Analytics - ANSWER-more transactions begin with the number
one than larger numbers
Blanket Purchase Agreements - ANSWER-simplified method for filling anticipated
repetitive needs by entering into purchase orders or contracts with qualified
sources, and then providing for orders to be placed against the purchase orders or
contracts
Bulk Funding - ANSWER-Funding provided to the contracting office for a
specific purpose rather than individual funding documents
Business Process Redesign - ANSWER-process of identifying the most efficient
set and pattern of activities to accomplish a work process
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Business Process Re-engineering - ANSWER-analysis and design of workflows
and processes within an organization that enable it to fundamentally rethink how it
does its work in order to dramatically improve service and reduce costs
Cause - ANSWER-this is the reason for the condition
CFO Act - ANSWER-established CFO in 24 departments and major agencies, and
charged that person to develop and maintain an integrated agency accounting and
FM system, including financial reporting and internal controls. Required for federal
agencies to produce annual financial reports
Change management - ANSWER-management task of preparing the work force
for changes in work processes and procedures
citizen survey - ANSWER-used in performance measurement and reporting that is
used to assess outcomes (results achieved) of governmental functions and
programs. Results of are often expressed as "percentage of citizens rating X service
as good or very good etc..". It can also be used to determine the services the
citizens want and/or how they should be measured
Commercial off-the-shelf software (COTS) - ANSWER-software product
provided by the private sector for an information system that requires little or no
additional programming
Committee of Sponsoring Organizations (COSO) - ANSWER-developed the
framework of internal controls that virtually all organizations now use
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Answers
A-76 - ANSWER-Directive issued by OMB that establishes federal policy for the
competition of commercial activities
Abuse - ANSWER-behavior that is deficient or improper when compared with
behavior that a prudent person would consider reasonable and necessary business
practice given the facts and circumstances
Account cleanup - ANSWER-process of researching, analyzing and evaluating old
accounts in an accounting system to determine if they should be terminated or
continued, and terminating those that meet the termination criteria
Accountability - ANSWER-A process involving the rendering of an account by
public officials to the citizenry and other stakeholders, regarding such matters as
compliance to the laws, financial probity, efficient performance, and effective
service delivery. For it to function there need to be benchmarks against which
performance can be measured
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Administrative Offset - ANSWER-the process of collecting delinquent debt by
offsetting payments due to the debtor under other applicable government
programs like loans, grants or contracts
Analytical tests - ANSWER-analyzing information about the auditee and are
performed at the start of each audit
Audit risk - ANSWER-combination of inherent risk, control risk and detection risk
Automated Clearinghouse System - ANSWER-authorizes the government to
automatically deposit to or withdraw from a personal or corporate bank account
Benford Digital Analytics - ANSWER-more transactions begin with the number
one than larger numbers
Blanket Purchase Agreements - ANSWER-simplified method for filling anticipated
repetitive needs by entering into purchase orders or contracts with qualified
sources, and then providing for orders to be placed against the purchase orders or
contracts
Bulk Funding - ANSWER-Funding provided to the contracting office for a
specific purpose rather than individual funding documents
Business Process Redesign - ANSWER-process of identifying the most efficient
set and pattern of activities to accomplish a work process
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Business Process Re-engineering - ANSWER-analysis and design of workflows
and processes within an organization that enable it to fundamentally rethink how it
does its work in order to dramatically improve service and reduce costs
Cause - ANSWER-this is the reason for the condition
CFO Act - ANSWER-established CFO in 24 departments and major agencies, and
charged that person to develop and maintain an integrated agency accounting and
FM system, including financial reporting and internal controls. Required for federal
agencies to produce annual financial reports
Change management - ANSWER-management task of preparing the work force
for changes in work processes and procedures
citizen survey - ANSWER-used in performance measurement and reporting that is
used to assess outcomes (results achieved) of governmental functions and
programs. Results of are often expressed as "percentage of citizens rating X service
as good or very good etc..". It can also be used to determine the services the
citizens want and/or how they should be measured
Commercial off-the-shelf software (COTS) - ANSWER-software product
provided by the private sector for an information system that requires little or no
additional programming
Committee of Sponsoring Organizations (COSO) - ANSWER-developed the
framework of internal controls that virtually all organizations now use
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
