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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Lilli

2 months ago

Haha, internal control evaluation, sounds like a real party, am I right? But hey, better to identify those risks early on than get caught with your pants down, am I right?

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Nana

15 days ago

D) identifying potential risks.

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Martina

16 days ago

B) assessing the adequacy of controls.

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Lettie

28 days ago

A) identifying the effectiveness of management activities.

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Kindra

2 months 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

2 months 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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Kenneth

3 days ago

Identifying potential risks is definitely important.

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Ronald

6 days ago

It's a combination of identifying risks, assessing controls, and documenting processes to ensure effective internal control.

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Quentin

8 days ago

Documenting how transactions or events are processed is also a key step in the evaluation process.

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Beula

12 days ago

I think assessing the adequacy of controls is also important to ensure everything is running smoothly.

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Tatum

19 days ago

Identifying risks is definitely crucial in the internal control evaluation process.

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Willodean

2 months ago

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

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Alida

2 months ago

I believe it's assessing the adequacy of controls.

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Willodean

2 months ago

I think the first step is identifying potential risks.

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Leota

2 months 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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Isidra

26 days ago

Definitely, it helps to ensure the effectiveness of internal controls.

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Kati

27 days ago

It's important to assess and address any potential risks in the process.

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Delsie

2 months ago

I agree, identifying potential risks is crucial for internal control evaluation.

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Peggy

2 months ago

I think option D is the best choice.

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