Question 1

Which of the following acts requires federal agencies to pay interest to state government funds for entitlements that are not provided in a timely manner?

Options :

A : Debt Collection Improvement Act

B : CFO Act

C : Accountability for Tax Dollars Act

D : Cash Management Improvement Act

Answer: D

Question 2

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

Options :

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.

Answer: D

Question 3

Management shoulg consider the cost of internal controls in relationship to

Options :

A : the available budget.

B : inherent risks.

C : benefits provided.

D : risk of collusion.

Answer: C

Question 4

An evaluation of anggntity’s single year financial statements would use which of the following analyses?

Options :

A : comparative

B : horizontal

C : trend

D : vertical

Answer: D

Question 5

The first step in assessing an agency's internal control program's compliance with applicable laws and regulations is to

Options :

A : review legal actions against the agency for noncompliance with laws and regulations.

B : contact the legislature to secure its views on any areas of regulatory noncompliance.

C : develop an inventory of the applicable laws and regulations.

D : request a compliance review from the agency-s chief legal officer.

Answer: C