Certified Government Financial Manager (CGFM) Practice Exam 2026 - Free CGFM Practice Questions and Study Guide

The primary responsibility for testing various internal controls related to budget and financial management procedures lies with internal auditors. Internal auditors are employed by the organization to assess the effectiveness of governance, risk management, and internal control processes. They perform extensive reviews of financial transactions, compliance with policies, and the adequacy of internal controls to mitigate the risk of errors or fraud.

Their work ensures that the organization's financial reporting is reliable and that resources are being used efficiently. Internal auditors provide insight into areas for improvement and help management attain their objectives by evaluating and enhancing the control environment.

In contrast, compliance auditors generally focus on adherence to laws, regulations, and contracts, ensuring that the organization meets specific compliance standards. External auditors, who are independent from the organization, typically perform audits primarily related to the fairness of financial statements for stakeholder assurance, rather than on internal operational controls. Financial analysts are more focused on analyzing financial data to guide investment decisions and strategic planning, rather than testing internal controls specifically.