AGA CGFM Actual Free Exam Questions & Community Discussion

Exam Code/Number: CGFM
Exam Name/Title: Certified Government Financial Manager (CGFM)
Certification Provider: AGA
Corresponding Certification: AGA CGFM

Exam Questions: 115
Updated On: Jul 14, 2026

Question #46

In an internal control evaluation, what are the roles of management and the auditor regarding the risk of fraud, waste and abuse?

A. Management identifies risks, auditors assess control effectiveness.

B. Management mitigates risks, auditors monitor compliance with controls.

C. Auditors identify risks, management implements control measures.

D. Both management and auditors determine risk tolerance levels.

Discussion 0

Correct Answer: A Vote an answer

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Question #47

The best source for annual liability and cash flow data is a state's

A. ACFR.

B. statement of activities.

C. appropriations bill.

D. PAR.

Discussion 0

Correct Answer: A Vote an answer

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Question #48

The four general government auditing standards are

A. planning, internal controls, independence and irregularities.

B. compliance, timeliness, qualifications and due professional care.

C. supervision, planning, management controls and evidence.

D. qualifications, independence, due professional care and quality control.

Discussion 0

Correct Answer: D Vote an answer

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Question #49

Management shoulg consider the cost of internal controls in relationship to

A. benefits provided.

B. inherent risks.

C. the available budget.

D. risk of collusion.

Discussion 0

Correct Answer: A Vote an answer

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Question #50

A sound investment category for pension funds that can be easily valued is

A. reverse repurchase agreements.

B. derivative instruments.

C. internal investment pools.

D. open-ended mutual funds.

Discussion 0

Correct Answer: D Vote an answer

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Question #51

A capital asset transferred to another department within the same government should be

A. recorded with the original department to maximize receipts.

B. recorded with the second department to minimize costs.

C. retained in the government's fixed asset tracking system with no change in book value to either department.

D. retained in the government's fixed asset tracking system showing the book value of the asset transferred to the receiving department.

Discussion 0

Correct Answer: D Vote an answer

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Question #52

When planning for local government financial statement audit, what data source should the auditor consider first?

A. previous audit findings

B. government-wide financial statements

C. reconciliations between fund financial statements

D. fund financial statements

Discussion 0

Correct Answer: A Vote an answer

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Question #53

Which of the following would auditors issue an opinion on?

A. performance audits

B. compliance audits

C. forensic audits

D. financial statement audits

Discussion 0

Correct Answer: D Vote an answer

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Question #54

The first step when gathering data for making strategic sourcing decisions is

A. contacting business units to find out if there are existing purchasing contracts in place.

B. contacting vendors to submit bids under the request for bid process.

C. developing supplier performance measures to add into the purchase agreements.

D. researching spend data by category for each business unit.

Discussion 0

Correct Answer: D Vote an answer

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