AGA CGFM Dumps Questions Answers

Cash Control Fundamentals:

The primary goal of cash controls is to safeguard assets and prevent fraud, errors, or misappropriation.

Frequent bank reconciliations ensure that recorded cash balances match actual bank balances, detecting discrepancies quickly.

Explanation of Answer Choices:

A. Segregation of duties: While critical for cash management, it is not the most fundamental cash control.

B. Use of automated systems: Helpful for efficiency but not a fundamental control.

C. Analysis of cash reports: Important, but reconciling bank accounts is more critical for detecting errors or fraud.

D. Frequent reconciliation of bank accounts: Correct. This is the most fundamental and widely recognized control for safeguarding cash.

References:

Association of Government Accountants (AGA),Cash Management Best Practices.

Government Finance Officers Association (GFOA),Bank Reconciliation Best Practices.

Responsibilities in Resolving Single Audit Findings:

Single audits assess compliance with federal program requirements.

Findings often highlight deficiencies or noncompliance issues that must be resolved by the entity receiving the federal funds.

Explanation of Answer Choices:

A. Awarding agency: The agency provides oversight and guidance but does not directly resolve findings.

B. Recipient agency: Correct. The entity receiving the funds is responsible for addressing and resolving findings to comply with federal regulations.

C. Audit committee: May oversee the process but doesn’t take direct responsibility for resolving findings.

D. External auditors: Identify the findings but do not resolve them.

References:

Uniform Guidance (2 CFR Part 200),Single Audit Requirements.

Association of Government Accountants (AGA),Government Auditing Standards.

What Is a Risk Profile?

Arisk profilerepresents the aggregate level and types of risks that an organization is willing to accept in pursuit of its strategic objectives. It aligns with the organization’s risk appetite and tolerance and helps prioritize and manage risks effectively.

This profile typically includes key risks, their likelihood, and potential impact, as well as how those risks align with the organization's mission and strategy.

Why Is Risk Profile the Correct Answer?

The risk profile provides an enterprise-wide view of risks and their potential influence on achieving strategic goals. It aggregates risks across all levels of the organization and ensures that management considers them when making decisions.

Why Other Options Are Incorrect:

A. Risk Register:While a risk register includes detailed descriptions of individual risks, it does not aggregate risk levels or types across the organization.

B. Risk and Control Evaluation Matrix:This tool evaluates specific risks and controls but does not capture the organization’s overall risk appetite or profile.

D. Risk and Control Assessment Tool:This is a generic tool for assessing risks and controls, not for aggregating the overall risk picture.

References and Documents:

OMB Circular A-123:Specifies the need for agencies to maintain a risk profile as part of enterprise risk management.

COSO ERM Framework (2017):Defines a risk profile as central to managing risks in alignment with strategic objectives.