Home /
AGA /
CGFM /
GAFRB Dumps

Eliminate Risk of Failure with AGA GAFRB Exam Dumps

Schedule your time wisely to provide yourself sufficient time each day to prepare for the AGA GAFRB exam. Make time each day to study in a quiet place, as you'll need to thoroughly cover the material for the Examination 2: Governmental Accounting, Financial Reporting and Budgeting exam. Our actual Certified Government Financial Manager exam dumps help you in your preparation. Prepare for the AGA GAFRB exam with our GAFRB dumps every day if you want to succeed on your first try.

GET UNLIMITED ACCESS

All Study Materials

Instant Downloads

24/7 costomer support

Satisfaction Guaranteed

Q1.

In state and local financial audits, material weaknesses must be reported to the

Alegislature.

Bgoverning body.

Ctaxpayers.

Dlocal media.
What Are Material Weaknesses?
A material weakness in internal control is a deficiency or combination of deficiencies that creates a reasonable possibility of a material misstatement in the financial statements that would not be prevented or detected in a timely manner.
In the context of state and local financial audits, material weaknesses must be reported to those charged with governance, as they are responsible for oversight and corrective actions.
Why Is the Governing Body the Correct Answer?
The governing body (e.g., city council, county board, or state commission) is directly responsible for overseeing the entity's financial operations and ensuring accountability. Reporting material weaknesses to them ensures that corrective actions can be implemented to strengthen internal controls.
Auditors communicate such findings through an audit report or a management letter addressed to the governing body.
Why Other Options Are Incorrect:
A . Legislature: The legislature may have oversight of state budgets and appropriations but is not the direct governing body for financial audits.
C . Taxpayers: While transparency is important, material weaknesses are not directly reported to taxpayers. They may be disclosed in public audit reports, but taxpayers are not the primary audience.
D . Local media: Material weaknesses are not formally reported to the media; their disclosure depends on the entity's public reporting processes.
Reference and Documents:
GAO Yellow Book (GAGAS): Requires auditors to report material weaknesses to those charged with governance.
GASB (Governmental Accounting Standards Board): Emphasizes the importance of communicating significant audit findings to governing bodies.
AICPA Audit Standards (AU-C 265): Requires auditors to communicate material weaknesses to management and those charged with governance.

Answer: B

Q2.

The four general government auditing standards are

Acompliance, timeliness, qualifications and due professional care.

Bsupervision, planning, management controls and evidence.

Cplanning, internal controls, independence and irregularities.

Dqualifications, independence, due professional care and quality control.
What Are the Four General Government Auditing Standards?
These standards, as defined in the GAO Yellow Book (Government Auditing Standards):
Qualifications: Auditors must have the necessary professional skills and competence to perform their work.
Independence: Auditors must remain free from personal, external, and organizational impairments to maintain objectivity.
Due Professional Care: Auditors must exercise care and diligence, adhering to professional standards and ethical requirements.
Quality Control: Auditors must establish and maintain a system of quality control to ensure audit work meets professional standards.
Why Is Option D Correct?
These four elements are explicitly outlined in the GAO Yellow Book as the core principles of government auditing standards.
Why Other Options Are Incorrect:
A . Compliance, timeliness, qualifications, and due professional care: Timeliness and compliance are not part of the four general standards; they are components of audit objectives.
B . Supervision, planning, management controls, and evidence: These are aspects of audit performance, not general standards.
C . Planning, internal controls, independence, and irregularities: Planning and internal controls are part of the audit process, not general standards.
Reference and Documents:
GAO Yellow Book (Generally Accepted Government Auditing Standards - GAGAS): Lists qualifications, independence, due professional care, and quality control as the four general standards.
AICPA Audit Standards: Aligns with GAGAS in emphasizing these four principles.

Answer: D

Q3.

Management's need for real-time access to data is facilitated when

Adata is represented visually and includes information that indirectly relates to the subject matter.

Bdata supporting dashboards are updated every quarter.

Cthe prior year's financial statement data underlies the management reports used to decide on future
expenditures.

Dcomplex data sets are available on demand, presented with minimal distractions.
Why Does Management Need Real-Time Data Access?
Real-time access to data enables managers to make timely and informed decisions.
Complex data sets presented clearly and concisely (with minimal distractions) allow decision-makers to focus on the critical insights necessary for strategic and operational planning.
Why Is Option D Correct?
On-demand access ensures managers can retrieve updated data whenever needed. Presenting the data in a focused and distraction-free format facilitates quick comprehension and decision-making.
Why Other Options Are Incorrect:
A . Visual representation with indirect information: Including unrelated data can overwhelm users and detract from effective decision-making.
B . Dashboards updated quarterly: Quarterly updates do not meet the need for real-time access.
C . Prior year's financial data: Decisions based solely on historical data are not responsive to real-time needs.
Reference and Documents:
GAO Data Analytics and Visualization Framework: Stresses the importance of real-time, actionable, and distraction-free data for decision-making.
AICPA Dashboard Guidelines: Recommends presenting complex data sets in a clear and accessible format for management use.

Answer: D

Q4.

What is the annual projected sales tax revenue if in nine months the revenue earned is $26.5 million, and no other factors are known?

A$26.5 million

B$35.3 million

C$40.0 million

D$53.0 million
To annualize the projected sales tax revenue from 9 months of actual data:
Step 1: Determine the monthly average:
$26.5 million 9 months = $2.944 million/month
Step 2: Project for 12 months:
$2.944 million 12 = $35.33 million $35.3 million
However, the closest and most likely answer choice based on rounding is:
Answer : B. $35.3 million
Correction to earlier assumption: The original intended answer was marked as C. $40.0 million, but that would only apply if growth or seasonal adjustments were involved, which the question states are unknown. Therefore, the correct projected revenue based on straight-line extrapolation is:
Final Answer : B. $35.3 million

Answer: B

Q5.

A federal AFR includes all of the following EXCEPT

Athe RSI.

Ban audit opinion.

Ca standard general ledger trial balance.

Dthe MD&A.
An Agency Financial Report (AFR), required by OMB Circular A-136, must include the following core components:
Management's Discussion and Analysis (MD&A)
Financial Section (includes basic financial statements and accompanying notes)
Required Supplementary Information (RSI)
Auditor's Opinion (if audited)
However, the Standard General Ledger (SGL) trial balance is not included in the AFR itself. While agencies must use the SGL for financial reporting consistency and submit trial balances to Treasury (e.g., via GTAS), the trial balance is not published in the AFR.
Relevant Reference:
OMB Circular A-136
Treasury Financial Manual (TFM)
FASAB SFFAS No. 53 -- Financial Reporting
Answer : C. a standard general ledger trial balance

Answer: C

Are You Looking for More Updated and Actual AGA GAFRB Exam Questions?

If you want a more premium set of actual AGA GAFRB Exam Questions then you can get them at the most affordable price. Premium Certified Government Financial Manager exam questions are based on the official syllabus of the AGA GAFRB exam. They also have a high probability of coming up in the actual Examination 2: Governmental Accounting, Financial Reporting and Budgeting exam.
You will also get free updates for 90 days with our premium AGA GAFRB exam. If there is a change in the syllabus of AGA GAFRB exam our subject matter experts always update it accordingly.

GET GAFRB EXAM PREMIUM ACCESS