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
Which internal control framework is most widely used by U.S. federal agencies to evaluate the adequacy of financial management controls?
Answer: COSO Internal Control Framework
The COSO Internal Control – Integrated Framework is the standard referenced by OMB Circular A-123 for federal agencies' internal control assessment.
A budget analyst discovers that obligations recorded in the financial system exceed apportioned amounts. What is the most immediate required action?
Answer: Report the potential Antideficiency Act violation to agency leadership
Exceeding apportioned amounts constitutes a potential Antideficiency Act violation that must be reported up the chain of command and ultimately to the President and Congress.
What does the term 'management representation letter' refer to in the context of federal financial audits?
Answer: A letter from the CFO certifying the accuracy of financial statements to auditors
A management representation letter is signed by agency management (typically the CFO) acknowledging responsibility for the financial statements and affirming their accuracy to auditors.
Under the Chief Financial Officers Act of 1990, which agencies are required to produce audited financial statements annually?
Answer: All 24 CFO Act agencies
The CFO Act designated 24 major federal departments and agencies that must produce annual audited financial statements.
Which type of audit opinion indicates that financial statements are presented fairly in all material respects in conformity with GAAP?
Answer: Unmodified (clean) opinion
An unmodified or 'clean' opinion means auditors found the financial statements to be fairly presented in all material respects in accordance with applicable accounting standards.
What is the primary purpose of a Program Assessment Rating Tool (PART) or similar performance review in budget compliance?
Answer: To evaluate whether programs achieve intended results and justify funding requests
Performance assessment tools like PART evaluate program effectiveness and efficiency to ensure budget resources align with actual results, supporting compliance with GPRA.
A 'material weakness' in internal controls, as defined by auditing standards, means:
Answer: A deficiency that could result in a material misstatement not being prevented or detected
A material weakness is a significant deficiency in internal control that creates a reasonable possibility that a material misstatement of financial statements will not be prevented or detected on a timely basis.