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

The correct choice identifies an organization that plays a key role in the realm of audits for government entities. The AICPA, or the American Institute of Certified Public Accountants, provides guidelines and standards for financial audits through its auditing standards and professional practices. Their standards are applicable to auditors of various entities, including government agencies, particularly when conducting compliance audits and financial audits.

The AICPA develops what is known as the Generally Accepted Auditing Standards (GAAS), which help ensure that financial audits are conducted with consistency and integrity. While AICPA standards are essential, they might not be exclusively focused on government agencies, as they serve a broader audience.

In contrast, other organizations mentioned set standards closely tailored to governmental financial reporting and auditing. For instance, the Governmental Accounting Standards Board (GASB) establishes accounting and financial reporting standards for U.S. state and local governments, while the Federal Accounting Standards Advisory Board (FASAB) serves a similar role for federal entities. These boards create authoritative guidance that specifically addresses the unique aspects of public-sector accounting and financial reporting.

Although FASB (Financial Accounting Standards Board) is vital for private sector accounting, it does not focus on governmental financial audits. Therefore, while AICPA contributes