Module 1: Resource Management Environment: Competency Area 3: Management’s Responsibility For ERM And Internal Control

Question 1

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

Answer 1

Manager’s Internal Control Program (page 7, 25)

Question 2

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 (page 8)

Question 3

3. What do internal controls reasonably ensure?

Answer 3

Programs achieve intended results; Resources are used efficiently; Programs/resources are protected from waste, fraud, and mismanagement; Laws and regulations are followed; Financial reporting is reliable and accurate (page 17)

Question 4

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

Answer 4

Government Accountability Office (GAO) (page 17, 19)

Question 5

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

Answer 5

Control Activities (page 19)

Question 6

6. The Financial Manager’s Financial Integrity Act report must include agency plans to correct what type of weakness?

Answer 6

Material weakness (page 27)

Question 7

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

Answer 7

Management judgment (page 23, 24)

Question 8

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

Answer 8

Correction Validation (page 25)

Question 9

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

Answer 9

3 (page 29)

Question 10

10. How many components are there in the GAO Standards of Internal Control?

Answer 10

5 (page 19)

Question 11

11. For what program is the full scope of management responsibility defined in DoD Instruction 5010.40?

Answer 11

RMIC / MICP (page 7, 25)

Question 12

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 (page 29)

Question 13

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 (page 33)

Question 14

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

Answer 14

Material (page 23)

Question 15

15. True or False: The July 15, 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.

Answer 15

False (page 5)

Question 16

16. What are the two major categories of control areas included in the GAO’s Federal Information System Control Audit Manual (FISCAM)?

Answer 16

General and Business Process Application Controls (page 15, 16)