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

The first step in the internal control evaluation process involves organizing the evaluation process itself. This foundational step is essential as it sets the structure for how the internal control system will be assessed. Proper organization includes defining the scope of the evaluation, identifying the relevant internal controls that need to be evaluated, and determining the resources and methodologies that will be employed throughout the evaluation.

By organizing the process, the evaluator can ensure that the assessment will be comprehensive and systematic, which is crucial for effective internal control evaluation. This includes establishing roles and responsibilities, scheduling activities, and ensuring that appropriate documentation is in place. Without this initial step, subsequent actions such as conducting risk assessments, developing control plans, and reporting results might lack direction and effectiveness.

In contrast, other options represent subsequent phases in the evaluation process, which depend on a well-organized approach to be successful. Conducting risk assessments and developing control plans both require an understanding of the organization’s structure, objectives, and existing controls, which are established during the organizing phase. Reporting results is the final step that relies on the findings and decisions made during the evaluation process, which again emphasizes the importance of a structured beginning.