Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Question: 1 / 875

What is a major component of financial oversight in government budgeting?

Minimizing audits

Ensuring compliance with laws

Ensuring compliance with laws is a major component of financial oversight in government budgeting because it establishes the legal framework within which government financial activities must operate. Government budgets are subject to numerous laws and regulations that dictate how funds can be allocated, spent, and reported. This compliance ensures accountability, transparency, and proper stewardship of public resources. Failing to comply with these laws can lead to legal repercussions, mismanagement of funds, and a loss of public trust. Therefore, compliance serves as a cornerstone for effective financial oversight, providing the guidelines necessary for ethical and legal financial management in government entities.

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Pursuing unrestricted funding

Developing informal fiscal policies

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