This is a paper that focuses on the what is the risk assessment and control activities components of GAO. The paper also reviews the budget formulation and review.
Risk assessment and control activities components of GAO
Instructions: Provide an answer to each question. Your answers should not be too succinct, but complete. A minimally correct answer will get a minimal passing grade. Where a question asks you to state something “in your own words,” an answer that simply cuts and pastes a passage from the reading or an authoritative reference (or has only minimal revisions) will be marked wrong.
Part 1: Control Concepts Assignment
1. Firstly, describe in your own words the relationship between the risk assessment and control activities components of the GAO Component Standards for internal controls.
2. Secondly, define, in your own words, each internal control mechanism, below. Then provide an example for how such a control is used to protect government funds. You might think of processes such as travel, contracting, or pay. However, if you cannot think of a specific example from your professional past, design one that conforms to the definition you provided.
a. Segregation of duties
b. Proper authorization
c. Adequate documents and also records
d. Independent checks and verification
Part 2: Budget Formulation and Review Assignment
1. Firstly, state in your own words why there are different budget formats for investment and expense-type budgets.
2. Secondly, what are the five factors that define a well-justified budget? Choose two of the five and also explain them in your own words.
3. Thirdly, assume an activity budgeted for (in an O&M appropriation) technical support to the operating forces using 100 employees at a budgeted cost of $25 million in FY 2017. Labor accounts for 80% of the cost. When computing the FY 2018 budget, the control number is $24 million, the anticipated labor cost increase is 2.0%, and inflation for the non-labor part of the budget is 3.0%.
a. What is the dollar amount of price growth?
b. Of program growth?
c. Explain your answers.
4. Lastly, look at the P-40 exhibit Figure 8.13 below. Describe the information on this exhibit in one sentence: “This page tells the reader ____.”