Certified Government Financial Manager (CGFM) 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 875

What is one responsibility of an audit committee?

Creating financial policies

Reviewing financial information for reliability

One key responsibility of an audit committee is to review financial information for reliability. This involves examining the organization's financial statements, ensuring that they are accurate, comprehensive, and compliant with accounting standards and regulations. The audit committee plays a critical role in overseeing the internal and external audit processes, which helps in identifying any discrepancies or issues within the financial reporting system.

Furthermore, by ensuring the reliability of financial information, the audit committee not only protects the organization's assets but also enhances the credibility of its financial reporting, which is vital for instilling confidence among stakeholders such as investors, regulators, and the public. This oversight is crucial in fostering accountability and transparency within the organization, aligning with best practices in corporate governance.

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Conducting employee evaluations

Preparing financial statements

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