CDFM MODULE 3 ACTUAL QUESTIONS WITH
VERIFIED SOLUTIONS
◉ The auditor is restricted access to essential data necessary to
satisfy the audit objective. What type of impairment would this be?
Answer: External Impairment
(p. 3.4.12)
◉ Which type of audit is expected to determine whether:
- The financial information is presented in accordance with
established stated criteria;
- The entity has adhered to specific financial compliance
requirements; and
- The entity's internal control structure over financial reporting
and/or safeguarding of assets is suitably designed and implemented
to achieve the control objective?
Answer: Financial Audit
(p. 3.4.22)
◉ Which type of audit is expected to determine whether:
- The entity is acquiring, using, and protecting its resources
economically and efficiently;
,- The entity's programs are achieving the desired results or benefits;
and
- The entity is accomplishing its mission in accordance with
applicable laws, regulations, and public policies.
Answer: Performance Audit
(p. 3.4.22)
◉ What does Title 31 do?
Answer: Provides statutory authority for the use, control, and
accountability of public funds.
◉ 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.
Answer: Basic Axiom of Fiscal Law
◉ What are the sources of Fiscal Law?
Answer: - The Constitution
- Authorization Acts
- Appropriation Acts
- General Statutes
- CG Decisions & Courts
,◉ Which part of the constitution empowers the Congress to pass
bills for the raising of revenue, and delineates how bills will pass
from the Congress to the President for signature or veto?
Answer: Article 1, Section 7
◉ Which part of the constitution empowers Congress to collect
taxes?
Answer: Article 1, Section 8, Clause 1
◉ Which part of the constitution requires appropriations in law
before money may be spent from the Treasury?
The term appropriation applies broadly to any law that permits a
Government employee to spend money, not just to the regular
appropriation bill.
Answer: Article 1, Section 9, Clause 7
◉ What did the Budget and Accounting Act of *1921* provide?
Answer: - Required the President to submit an annual budget to
Congress for all three branches of the Federal Government
- Created a budget office for the President (chgd to OBM in 1970)
- Established the General Accounting Office (now called the
Government Accountability Office)
◉ This law:
, - Governs the congressional budget process
- Defines some key budget terms, such as budget authority, that are
used in all phases of the budget process
- Establishes the House and Senate Budget committees and the
Congressional Budget Office (CBO)
Answer: P.L. 93-344 and P.L. 100-119 Congressionl Budget Act of
*1974*
◉ This law prescribes rules and procedures designed to constrain
spending and receipts legislation.
Answer: P.L. 99-177 Congressional Balanced Budget and Emergency
Deficit Control Act of *1985*
◉ These sections prescribe rules and procedures for budget
execution. The overarching statutory requirement for the use,
control and accountability of funds are found here.
Answer: 31 USC 13 and 15
◉ Responsible for use of appropriated funds as to the proper
Purpose, Time and Amount and for those US Codes pertaining
thereto.
Answer: Fiduciary Certifier
◉ Responsible for the accuracy of the disbursement of funds.
VERIFIED SOLUTIONS
◉ The auditor is restricted access to essential data necessary to
satisfy the audit objective. What type of impairment would this be?
Answer: External Impairment
(p. 3.4.12)
◉ Which type of audit is expected to determine whether:
- The financial information is presented in accordance with
established stated criteria;
- The entity has adhered to specific financial compliance
requirements; and
- The entity's internal control structure over financial reporting
and/or safeguarding of assets is suitably designed and implemented
to achieve the control objective?
Answer: Financial Audit
(p. 3.4.22)
◉ Which type of audit is expected to determine whether:
- The entity is acquiring, using, and protecting its resources
economically and efficiently;
,- The entity's programs are achieving the desired results or benefits;
and
- The entity is accomplishing its mission in accordance with
applicable laws, regulations, and public policies.
Answer: Performance Audit
(p. 3.4.22)
◉ What does Title 31 do?
Answer: Provides statutory authority for the use, control, and
accountability of public funds.
◉ 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.
Answer: Basic Axiom of Fiscal Law
◉ What are the sources of Fiscal Law?
Answer: - The Constitution
- Authorization Acts
- Appropriation Acts
- General Statutes
- CG Decisions & Courts
,◉ Which part of the constitution empowers the Congress to pass
bills for the raising of revenue, and delineates how bills will pass
from the Congress to the President for signature or veto?
Answer: Article 1, Section 7
◉ Which part of the constitution empowers Congress to collect
taxes?
Answer: Article 1, Section 8, Clause 1
◉ Which part of the constitution requires appropriations in law
before money may be spent from the Treasury?
The term appropriation applies broadly to any law that permits a
Government employee to spend money, not just to the regular
appropriation bill.
Answer: Article 1, Section 9, Clause 7
◉ What did the Budget and Accounting Act of *1921* provide?
Answer: - Required the President to submit an annual budget to
Congress for all three branches of the Federal Government
- Created a budget office for the President (chgd to OBM in 1970)
- Established the General Accounting Office (now called the
Government Accountability Office)
◉ This law:
, - Governs the congressional budget process
- Defines some key budget terms, such as budget authority, that are
used in all phases of the budget process
- Establishes the House and Senate Budget committees and the
Congressional Budget Office (CBO)
Answer: P.L. 93-344 and P.L. 100-119 Congressionl Budget Act of
*1974*
◉ This law prescribes rules and procedures designed to constrain
spending and receipts legislation.
Answer: P.L. 99-177 Congressional Balanced Budget and Emergency
Deficit Control Act of *1985*
◉ These sections prescribe rules and procedures for budget
execution. The overarching statutory requirement for the use,
control and accountability of funds are found here.
Answer: 31 USC 13 and 15
◉ Responsible for use of appropriated funds as to the proper
Purpose, Time and Amount and for those US Codes pertaining
thereto.
Answer: Fiduciary Certifier
◉ Responsible for the accuracy of the disbursement of funds.
