AGA Exam CGFM Topic 2 Question 17 Discussion

Actual exam question for AGA's CGFM exam

Question #: 17
Topic #: 2

[All CGFM Questions]

The first step in the internal control evaluation process is

Aidentifying the effectiveness of management activities.

Bassessing the adequacy of controls.

Cdocumenting how transactions of events are processed.

Didentifying potential risks.

Show Suggested Answer

Suggested Answer: D

by Antione at Sep 21, 2022, 12:23 PM

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Kindra

44 minutes ago

Option C is tempting, but I think documenting the transaction flow comes a bit later in the process. First, we need to identify the risks.

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Joaquin

3 days ago

I agree with Leota. Identifying risks is crucial before you can assess the adequacy of controls or the effectiveness of management activities.

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Willodean

13 days ago

But wouldn't documenting how transactions are processed be important too?

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Alida

14 days ago

I believe it's assessing the adequacy of controls.

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Willodean

15 days ago

I think the first step is identifying potential risks.

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Leota

16 days ago

Option D seems to be the correct answer. Identifying potential risks is the foundation of the internal control evaluation process.

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Peggy

2 days ago

I think option D is the best choice.

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