Quality Assurance & Compliance Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Quality Assurance & Compliance flashcards as text
The Improper Payments Information Act (IPIA) and its amendments require agencies to do which of the following?
Answer: Identify risk-susceptible programs, estimate improper payment rates, and report remediation plans
IPIA and subsequent amendments (IPERA, IPERIA) require agencies to identify programs susceptible to significant improper payments, estimate error rates, report amounts, and develop corrective action plans.
Which of the following best describes the role of the GAO in federal budget quality assurance?
Answer: GAO audits agency financial statements and investigates allegations of fraud and misuse
The GAO serves as the legislative branch's watchdog, conducting audits, investigations, and evaluations of federal programs to assess efficiency, effectiveness, and compliance.
What is the primary purpose of an agency's 'funds control' system in budget execution?
Answer: To prevent obligations from exceeding available budgetary resources at each level of control
A funds control system creates a hierarchy of controls that prevents commitments, obligations, and expenditures from exceeding available budget authority at each organizational level.
A federal agency's purchase card program must include which compliance safeguard to prevent misuse?
Answer: Implementing transaction limits, mandatory approvals, and periodic management reviews
Effective purchase card controls include setting per-transaction and monthly limits, requiring supervisor approval for purchases, and conducting periodic audits and reviews of card activity.
Under federal accounting standards (SFFAS), what is the recognized definition of a 'contingent liability'?
Answer: A possible future obligation depending on the outcome of a past event, where payment is probable and estimable
SFFAS No. 5 defines contingent liabilities as possible future outflows or other sacrifices of resources stemming from existing conditions involving uncertainty about whether a loss has occurred.
Which compliance requirement mandates that federal agencies maintain complete documentation supporting each obligation for at least three years after the account closes?
Answer: Federal Records Act and OMB Circular A-123
The Federal Records Act and OMB Circular A-123 together require agencies to maintain obligation documentation to support audit trails and facilitate post-audit review of budget execution.
When an agency receives a qualified audit opinion due to a scope limitation, it most commonly means:
Answer: Auditors were unable to obtain sufficient appropriate evidence for one or more material areas
A qualified opinion due to scope limitation occurs when auditors cannot obtain sufficient evidence to support an opinion on certain material aspects of the financial statements.