Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The statement that the GASB's due process promotes open participation from the public is accurate. The Governmental Accounting Standards Board (GASB) emphasizes transparency and inclusivity in its decision-making processes. This is critical because it ensures that stakeholders—including government entities, public officials, and the public—have the opportunity to voice their opinions and concerns regarding accounting standards.

The GASB's due process typically includes public exposure drafts, outreach activities, and opportunities for stakeholders to provide feedback. This open participation helps the GASB create standards that are informed by a wide range of perspectives and experiences, thereby enhancing the relevance and effectiveness of the standards implemented.

The other options do not align with the principles of the GASB's due process. Closed-door discussions would contradict the focus on transparency and stakeholder engagement, public comment is explicitly encouraged rather than prohibited, and the due process is not limited to just state audits—it encompasses all governmental accounting matters. Thus, the emphasis on public participation is a foundational aspect of the GASB’s approach to standard-setting, underscoring the importance of collaborative engagement in the development of accounting principles.