Management's Responsibility for Internal Control

Question 1

What is the name of the Department’s internal control effort?

Answer 1

Managers’ Internal Control Program

Question 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?

Answer 2

Assets

Question 3

What do internal controls reasonably ensure?

Answer 3

1. Programs achieve Intended results
2. Resources are 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

Question 4

What agency issues “Standards for Internal Control in the Federal Government”?

Answer 4

Government Accountability Office (GAO)

Question 5

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

Answer 5

Control Activities

Question 6

The Integrity Act report must include agency plans to correct what type of weakness?

Answer 6

Material Weakness

Question 7

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

Answer 7

It is a management judgment

Question 8

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

Answer 8

Correction Validation

Question 9

The DoD component head’s Statement of Assurance must take one of how many forms?

Answer 9

Three

Question 10

How many standards are there in the GAO Standards of Internal Control?

Answer 10

Five

Question 11

For what program is the full scope of management responsibility defined in DoD Instruction 501 0.40?

Answer 11

DoD’s Managers’ Internal Control Program

Question 12

When a DoD component head provides a Statement of Assurance that the component’s controls
are in place and achieving their intended objectives, is this a statement of absolute assurance or
reasonable assurance?

Answer 12

Reasonable Assurance

Question 13

What is the term for the probable or potential adverse effects from inadequate internal control that
may result in the loss of Government resources or cause an agency to fail to accomplish significant
mission objectives through fraud, waste, or mismanagement?

Answer 13

Risk

Question 14

What kind of a weakness significantly impairs the fulfillment of a DoD component’s mission?

Answer 14

Material