AGA CGFM Practice Exams
Last updated on Oct 22,2026- Exam Code: CGFM
- Exam Name: CGFM Certified Government Financial Manager
- Certification Provider: AGA
- Latest update: Oct 22,2026
What is the basis for determining materiality for financial audits?
- A . The auditee determines what is material based on their understanding of how the financial statements
may be used by third parties. - B . The auditor establishes materiality based on whether a misstatement would influence the judgement
made by a reasonable user of the financial statements. - C . The entity’s main provider of resources typically sets materiality levels for financial reporting.
- D . The auditor sets a standard percentage for all entities by transaction class.
An analyst has identified several variables that may be impacting state lottery ticket sales, including investments in advertising, potential pay-out amounts and the size of lottery cards.
Which of the following techniques would help determine the extent to which each variable is impacting sales?
- A . content analysis
- B . cost-benefit analysis
- C . regression analysis
- D . narrative analysis
If a state treasurer wants to evaluate a variety of alternative long-term investments, which financial analysis should
be used?
- A . net present value analysis
- B . regression analysis
- C . horizontal analysis
- D . ratio analysis
What might be a cost-effective solution for a local public school to reduce increasing special education costs without violating federal maintenance of effort requirements?
- A . Shift a portion of the costs in the form of a fee to parents.
- B . Decrease budget allocation for special education services.
- C . Develop a shared services agreement with surrounding districts.
- D . Outsource special needs services to a private contractor.
To support optimal cash management vendor payment procedures, invoices with discount terms should be paid
- A . after the due date to increase cash flow.
- B . prior to the due date to improve credit rating.
- C . on the due date, unless a charge is assessed for late payment.
- D . on the discount date.
Who is responsible for resolving single audit findings?
- A . the awarding agency
- B . the recipient agency
- C . the audit committee
- D . the external auditors
If a CGFM wants to utilize data on population growth, housing and employment to estimate sales tax revenue, the CGFM should use
- A . a regression analysis.
- B . a cash flow analysis.
- C . a payback analysis.
- D . flow charting.
Business process re-engineering typically addresses all of the following EXCEPT the
- A . key processes.
- B . human environment.
- C . organizational mission.
- D . technical environment.
An employee is set to receive a lumpsum payment of $500,000 in ten years. The agency uses an opportunity rate of 12% for its investments.
If inflation is 3%, how much must the agency invest today to cover the future lumpsum payment?
- A . $160,986
- B . $186,023
- C . $440,000
- D . $485,000
The four general government auditing standards are
- A . compliance, timeliness, qualifications and due professional care.
- B . supervision, planning, management controls and evidence.
- C . planning, internal controls, independence and irregularities.
- D . qualifications, independence, due professional care and quality control.