Free AGA CGFM Exam Dumps

Audit Opinions:

Auditors issue opinions on financial statement audits to provide assurance about whether the financial statements are presented fairly in accordance with applicable accounting standards (e.g., GAAP).

Other types of audits, such as performance or forensic audits, do not typically result in opinions but may provide findings or recommendations.

Explanation of Answer Choices:

A . Performance audits: These assess efficiency, effectiveness, or economy but do not include an opinion.

B . Compliance audits: These assess adherence to laws or regulations and may include findings but not an opinion.

C . Financial statement audits: Correct. These audits include an auditor's opinion on the fairness of the financial statements.

AICPA, Audit Opinions on Financial Statements.

GAO, Government Auditing Standards (Yellow Book).

* Why Include Permissible and Non-Permissible Investment Securities?

An investment policy outlines the guidelines and restrictions for managing an entity's investments, ensuring compliance with laws and protecting public funds.

Listing permissible (e.g., government bonds, treasury securities) and non-permissible investments ensures clarity about what the entity can and cannot invest in, helping to mitigate risk and maintain fiduciary responsibility.

* Why Other Options Are Incorrect:

A . Prices and performance of investment securities: This information is important for monitoring investments but does not belong in the policy itself.

C . Historical allocations of investment securities: Historical data informs decision-making but is not relevant to the rules governing investments.

D . Key and non-key investment security controls: While controls are critical, they are part of the implementation process, not the investment policy.

* Reference and Documents:

GAO Investment Policy Guidelines: Recommends specifying permissible investments to ensure fiduciary responsibility.

GFOA Best Practices in Investment Management: Emphasizes clear investment guidelines in the policy.