Cdfm 1.3

Front 1

What is the name of the department internal control effort?

Back 1

Managers internal control program

Front 2

The purposes of the federal managers financial integrity act of 1982 are to prevent waste or misuse of agency funds or property and to assure the accountability of what?

Back 2

Assets

Front 3

What 5 things do internal controls reasonably ensure?

Back 3

1. Programs achieve intended results

2. Resources used efficiently

3. Programs/resources are protected from waste, fraud, and mismanagement

4. Laws and regulations are followed

5. Financial reporting is reliable and accurate

Front 4

What agency issues standards for internal control in the federal government?

Back 4

Government accountability office

Front 5

Segregation of duties is a type of which internal control standard?

Back 5

Control activities

Front 6

The financial managers financial integrity act report must include agency plans to correct what type of weaknesses?

Back 6

Material weakness

Front 7

Who decides whether a weakness is material enough to warrant reporting as a material weakness to the next higher level?

Back 7

It is a management judgment

Front 8

What should be the last milestone of the corrective action plan for each material weakness?

Back 8

Correction validation

Front 9

The DoD component heads statement of assurance must take one of how many forms?

Back 9

Three

Front 10

How many standards are there in the GAO standards of internal control?

Back 10

5

Front 11

For what program is the full scope of management responsibility defined in DOD instruction 5010.40?

Back 11

DOD's managers' internal control program

Front 12

When a DOD component head provides a statement of assurance that the components controls our inplace and achieving their intended objectives, is this a statement of absolute assurance or reasonable assurance?

Back 12

Reasonable

Front 13

What is the term for probable or potential adverse effects from inadequate internal control?

Back 13

Risk

Front 14

What kind of weakness significantly impairs the fulfillment of a DOD components mission?

Back 14

Material

Front 15

True or false: the July 15th, 2016 updated version of OMB circular A-123 requires CFO Act Agencies to hire a chief risk officer for the purpose of establishing an enterprise risk management capability within the agency.

Back 15

False

Front 16

What are the two major categories of control areas included in GAO's federal information system controls audit manual (FISCAM)?

Back 16

General and business process application controls

Front 17

Who manages the Military Intelligence Programs (MIP)?

Back 17

Under Secretary for Defense of Intelligence USD(I)

Front 18

Who manages the National Intelligence Programs?

Back 18

Director of National Intelligence (DNI)

Front 19

ERM as a discipline deals with what three tasks?

Back 19

Identifying, assessing, and managing risks

Front 20

Which policy and legislation are the center of requirements to improve accountability in federal government programs and operations?

Back 20

Policy: OMB Circular A-123

Law: Federal Managers Financial Integrity Act (FMFIA) of 1982

Front 21

Which OMB Circular provides information and guidance on internal controls?

Back 21

OMB Circular A-123

Front 22

FMFIA was codified in accordance with which US Code title?

Back 22

31 USC 3512

Front 23

FMFIA Act of 1982 established the legal framework for what?

Back 23

Internal controls for the federal government.

Front 24

OMB Circular A-123 corresponds to what DoD instruction?

Back 24

DOD managers internal control program, DoDI 5010.40

Front 25

Which office established standards for internal control in the federal government?

Back 25

Government Accountability Office (GAO); previously known as Government Accounting Office before FMFIA

Front 26

The GAO's standards for internal control in the federal government are included in what document?

Back 26

The Green Book

Front 27

What act did the FMFIA of 1982 amend?

Back 27

Accounting and auditing act of 1950

Front 28

Per FMFIA, what are the three provisions each executive agency must provide reasonable assurances for?

Back 28

1. Obligations and costs comply with applicable law

2. Funds, property, and other assets are safeguarded against waste, loss, unauthorized use or misappropriation

3. Revenues, expenditures and assets are properly accounted for

Front 29

What is outlined in section 2 of OMB Circular A-123?

Back 29

1. Define management's responsibilities for ERM

2. Encourages agencies to establish a risk management counsel RMC

Front 30

What is outlined in section 4 of OMB Circular A-123?

Back 30

Management's responsibility to continuously monitor, assess, and improve the effectiveness of internal controls

Front 31

What do appendices A-D in OMB Circular A-123 involve?

Back 31

1. Implementation plans

2. Government charge card program's internal controls

3. Estimation & remediation of improper payments

4. Compliance with Federal Financial Management Improvement Act 1996

Front 32

Which office defined the enterprise risk management ERM?

Back 32

OMB

Front 33

Define enterprise risk management

Back 33

An effective agency wide approach to addressing the full spectrum of an organization's risks within an entire portfolio; rather than addressing risks within silos

Front 34

Name the seven steps associated with the enterprise risk management model

Back 34

1. Establish context

2. Identify risks

3. Analyze and evaluate risks

4. Develop alternatives

5. Respond to risks

6. Monitor and review

7. Continuous risk identification

(EIADRMC)

Front 35

What is the primary purpose of developing a risk profile?

Back 35

Provide a thoughtful analysis of the risks an Agency faces in achieving its objectives

Front 36

In regards to creating a risk profile, give an example of a vulnerability assessment tool

Back 36

Heat map used in risk review boards at NAVWAR

Front 37

How does the green book define internal control?

Back 37

process affected by an entities oversight body, management, and other personnel that provides reasonable assurance the objectives of an entity are achieved

Front 38

True or false: using the internal control requirements in OMB Circular A-123 guarantees waste, fraud, and mismanagement of federal programs and operations will not occur. Why or why not?

Back 38

False; it only provides a means of managing the risk associated with waste, fraud, and mismanagement

Front 39

Who is ultimately responsible at all levels for ensuring efficient internal controls?

Back 39

Management

Front 40

What is the internal control over financial reporting (ICOFR) process designed to do?

Back 40

Provide reasonable assurance regarding the reliability of financial reporting

Front 41

Per the CDFM instructor, what is the most important assertion management can reasonably make through the ICOFR process?

Back 41

Documentation is audit ready; specifically " documentation for internal control, all transactions, and other significant events is readily available for examination."

Front 42

What policy presented a methodology for performing information system control audits of federal and other governmental entities in accordance with professional standards?

Back 42

Federal Information System Controls Audit Manual (FISCAM)

Front 43

FISCAM can be used as the basis for an Independent evaluation of a federal agency's information security program required by what act?

Back 43

Federal information security management Act (FISMA)

Front 44

Name the five General Controls within the FISCAM process

Back 44

1. Security management

2. Access controls

3. Configuration management

4. Segregation of duties

5. Contingency planning

Front 45

FMFIA requires federal executive branch entities to establish internal controls in accordance with what standards?

Back 45

The Green Book

Front 46

What are the five internal control objectives that provide reasonable assurance?

Back 46

1. Programs achieve intended results

2. Resources used efficiently

3. Avoid waste, fraud & mismanagement

4. Laws and regulations are followed

5. Financial reporting is reliable and accurate

Front 47

Define business process application controls and what they help to ensure

Back 47

Controls directly related to individual computerized applications. They help ensure that transactions are complete, accurate, valid, confidential, and available

Front 48

Give an example of a process control in a third party provider situation

Back 48

An agency contracts out its IT development to a third party and that organization chooses to document, track, approve, and test all application changes internally. Them doing so, helps the agency retain significant control over the IT development process

Front 49

True or false: a well-designed and operated internal control can provide absolute assurance that all agency objectives will be met

Back 49

False; it can only provide reasonable assurance

Front 50

Name the five components associated with GAO framework for internal control

Back 50

1. Control environment

2. Risk assessment

3. Control activities

4. Information and communication

5. Monitoring

Front 51

Which of the 5 components within the GAO internal control framework are affected if management doesn't demonstrate a commitment to ethical values?

Back 51

#1 Control environment (principle 1)

Front 52

What is the difference between a corrective action plan (CAP) and a corrective action report (CAR)?

Back 52

CAP addresses the risk through monitoring while a CAR is a report on how the risk was mitigated

Front 53

Name the three categories of internal control deficiencies

Back 53

Control deficiency

Significant deficiency

Material weakness

Front 54

In regards to internal controls, when does a control deficiency exist?

Back 54

When a control does not allow management or personnel to achieve control objectives and address related risks

Front 55

In regards to internal controls, when does a significant deficiency exist?

Back 55

When a deficiency, or combination of deficiencies, is less severe than a material weakness yet important enough to merit attention by INTERNAL management

Front 56

What is a material weakness?

Back 56

A significant deficiency of internal controls that an agency head determines to be significant enough to report externally to OMB and Congress

Front 57

Give an example of a material weakness in the following situations:

1. Operations

2. Reporting

3. Compliance

Back 57

1. Operations: deprived the public of needed services2. Reporting: Financial status report is inaccurate and results in leadership making bad decisions3. Compliance: management is unable to reasonably ensure laws aren't being violated

Front 58

Who determines whether or not to categorize an internal control weakness as material?

Back 58

Management

Front 59

D o d instruction 5010.40 managers internal control procedures requires the under secretary of defense comptroller to do what two things?

Back 59

1. Establish a senior management counsel to provide oversight and accountability

2. Co-chair a FIAR governance board with the DOD deputy chief management officer (DCMO) to provide oversight and accountability for the DOD financial reporting and financial systems

Front 60

Who is the CFO within DOD?

Back 60

Under secretary of defense comptroller

Front 61

DODI 5010.40 direct each DOD and OSD component head to establish what?

Back 61

Managers Internal control program (MICP)

Front 62

What instruction provides procedures on correcting material weaknesses and submitting annual statements of assurance?

Back 62

DODI 5010.40

Front 63

Name the associated laws and policies that provide direction for carrying out internal control programs for each of the below:

Law

GAO

OMB

DOD

Back 63

Law: FIMFIA

GAO: the Green Book

OMB: Circular A-123

DOD: DoDI 5010.40

Front 64

A summary of corrective action plans for material weaknesses that have not been fully miligated at the time of reporting must be included in what document?

Back 64

The agency financial report (AFR), performance and accountability report (PAR), or other management report

Front 65

What are the four levels within the DOD that a material weakness is reviewed at?

Back 65

1. Installation or activity level (ECH III)

2. Major command or field activity (NAVWAR)

3. Component level (Navy)

4. DoD level

Front 66

Material weaknesses that cannot be resolved at the SECDEF level are reported in what document?

Back 66

Annual DOD statement of assurance

Front 67

What are the three types of statements that can be included on the annual statement of insurance?

Back 67

Statement of: unmodified, modified, or no assurance

Front 68

What are the four main components of the statement of assurance report?

Back 68

1. Statement of reasonable assurance regarding effectiveness of internal controls over operations

2. Explicit level of assurance regarding ICOFR

3. Explicit level of assurance regarding ICOFS

4. The level for each explicit assurance

Front 69

Give two examples of control activities

Back 69

No Antideficiency Act occurrence (control objective) and Purpose, Time and Amount training for budget analyst (control technique)

Front 70

What is an accessible unit in regards to internal control?

Back 70

A subdivision of an organization that ensures a reasonable level of management control and analysis

Front 71

What law and title outline the definition and requirement of reasonable assurance?

Back 71

Title 31 USC 3512

Federal managers financial integrity Act of 1982 (FMFIA)

Front 72

What guiding document requires the establishment of a senior management counsel?

Back 72

OMB Circular A-123