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AGA CGFM Exam - 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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Carmen

8 months ago

I always thought identifying risks was the first step!

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Aron

8 months ago

Wait, are we sure it's not about documenting transactions first?

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Weldon

9 months ago

Agree, management activities come later in the process.

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Brett

9 months ago

I thought it was identifying potential risks first?

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Casie

9 months ago

It's definitely about assessing the adequacy of controls.

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Sean

9 months ago

I thought it was about identifying the effectiveness of management activities, but I’ve seen similar questions where risk identification was emphasized first.

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An

9 months ago

I’m leaning towards documenting how transactions are processed, but I feel like that comes after identifying risks.

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Melinda

9 months ago

I remember something about assessing the adequacy of controls being important, but I can't recall if that's the very first step.

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Annett

9 months ago

I think the first step might be identifying potential risks, but I'm not entirely sure. It feels like that’s where we usually start in practice questions.

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Nickolas

9 months ago

I'm a bit confused by the wording of this question. It's not entirely clear to me what the different options mean in terms of the delivery process. I'll need to think it through carefully.

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Samuel

10 months ago

Hmm, I'm a little unsure about this one. The terminology around "Primary Basic Function," "Higher Order Function," and "Primary Supporting Function" is a bit confusing to me. I'll need to think it through step-by-step to make sure I understand the relationships between those concepts.

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Lilli

1 year 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

1 year ago

D) identifying potential risks.

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Martina

1 year ago

B) assessing the adequacy of controls.

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Lettie

1 year ago

A) identifying the effectiveness of management activities.

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Kindra

1 year 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

1 year 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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Gladys

1 year ago

It's a step-by-step process that all plays a role in internal control evaluation.

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Jenelle

1 year ago

Documenting how transactions or events are processed is key as well.

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Huey

1 year ago

I think assessing the adequacy of controls is also crucial.

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Kenneth

1 year ago

Identifying potential risks is definitely important.

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Ronald

1 year ago

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

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Quentin

1 year ago

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

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Beula

1 year ago

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

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Tatum

1 year ago

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

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Willodean

1 year ago

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

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Alida

1 year ago

I believe it's assessing the adequacy of controls.

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Willodean

1 year ago

I think the first step is identifying potential risks.

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Leota

1 year 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

1 year ago

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

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Kati

1 year ago

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

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Delsie

1 year ago

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

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Peggy

1 year ago

I think option D is the best choice.

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