AGA GFMC Actual Free Exam Questions & Community Discussion

Exam Code/Number: GFMC
Exam Name/Title: Examination 3: Governmental Financial Management and Control (GFMC)
Certification Provider: AGA
Corresponding Certification: Government Financial Manager

Exam Questions: 117
Updated On: Jul 13, 2026

Question #7

Management's ability to monitor for financial control weakness is most compromised if

A. performance data is inaccurate.

B. collusion is present.

C. financial data is inaccurate.

D. theft has occurred.

Discussion 0

Correct Answer: B Vote an answer

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Question #8

An agency benefit program allows employees who commute by public transit up to 10 free taxi trips home per calendar year. Employees can use the program for personal or family health emergencies. The most appropriate method to check for abuse of this program is

A. using personal data to determine if the destination address matches the employees home address.

B. requesting records from a random sample of employees to verify they used transit on the day they used the taxi services.

C. using geographic information system data to determine if the destination addresses were hospitals or clinics.

D. using program data to look for instances of individuals using the service more than 10 times per year.

Discussion 0

Correct Answer: B Vote an answer

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Question #9

A material weakness in internal control over financial reporting is defined as a deficiency that

A. results in a material misstatement in other accompanying financial information.

B. did not allow management to perform their assigned responsibility to prevent, detect and correct misstatements in a timely manner.

C. creates a reasonable possibility of a material misstatement to the financial statements that will not be detected in a timely manner.

D. results in a misstatement to the basic financial statements.

Discussion 0

Correct Answer: C Vote an answer

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Question #10

Earned value management is preferred over traditional project management because

A. earned value management is used to monitor progress and deliverables of smaller projects.

B. traditional project management provides information about status of deliverables, funds and time expended.

C. traditional project management is used to monitor progress and deliverables of larger projects.

D. earned value management provides information about status of deliverables, funds and time expended.

Discussion 0

Correct Answer: D Vote an answer

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Question #11

Internal control over financial reporting means that management can reasonably make which of the following assertions?

A. All assets and liabilities have been properly valued and, where applicable, all costs have been properly allocated.

B. Management has met its legislatively directed program goals.

C. Sufficient spending authority and financial resources exist to support reported expenditures.

D. A physical inventory has been conducted of all assets meeting the jurisdiction's capitalization threshold.

Discussion 0

Correct Answer: A Vote an answer

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Question #12

Who holds primary responsibility for establishing internal controls?

A. audit committee

B. management

C. internal auditors

D. ccountants

Discussion 0

Correct Answer: B Vote an answer

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