Test Prep Test Prep Certifications CGFM Questions & Answers

• Question 1:

  Which of the following danger sign/s help to detect Auditors' fraud?

  A. Borrowing small amounts from fellow employees

  B. Pronounced criticism of others, endearing to divert suspicion

  C. Replying to Questions with unreasonable explanations

  D. All of these

  Correct Answer: D

• Question 2:

  If a reportable condition might result in a material misstatement of financial statements, then it must be noted as a:

  A. Material weakness

  B. Unqualified report

  C. Revised situation

  D. Adverse condition

  Correct Answer: A

• Question 3:

  The auditors provide _______________ of the reliability of the financial statements.

  A. Reasonable assurance

  B. Sample

  C. Material misstatement

  D. None of these

  Correct Answer: A

• Question 4:

  Which of the following opinions is not expressed by auditors as to whether financial statements are expressed fairly in all material respects with respect to generally accepted accounting principles?

  A. Unqualified opinion

  B. Qualified opinion

  C. Disclaimer

  D. Reversal opinion

  Correct Answer: D

• Question 5:

  Most States require that local government engage the services of an _________ firm to audit their financial statements.

  A. Government accountability office

  B. Certified public accounting firm

  C. Government finance officers association

  D. None of these

  Correct Answer: B

• Question 6:

  The auditor(s) should:

  I- Adequately plan the work and properly supervise assistants II- Properly study internal accounting controls to determine their reliability

  These points are the part of

  A. General Standards

  B. Field work Standards

  C. Reporting Standards

  D. All of these

  Correct Answer: B

• Question 7:

  At the federal level, financial auditing is conducted by two organization ______________ conducts an annual financial audit

  A. Inspectors general

  B. Financial auditor

  C. Dealer

  D. Auditing auditor

  Correct Answer: A

• Question 8:

  The federal government requires non-profit and privet firms to make _______________ assumption regarding future interest rates, wage increases, inflation and the like.

  A. Implicit, one understated by another

  B. Explicit

  C. Both AandB

  D. None of these

  Correct Answer: C

• Question 9:

  With respect to capital leas the cops, the rating analyst evaluates:

  A. The essentialities of the asset

  B. The risk of non-appropriation

  C. General creditworthiness

  D. All of these

  Correct Answer: D

• Question 10:

  A city has an EMF of 0.80. Its premium at 1.0 would have been $10,000. Therefore, its actual premium is:

  A. $800

  B. $8000

  C. $8800

  D. None of these

  Correct Answer: B