Certified Government Financial Manager (CGFM) Practice Exam

The answer is grounded in the principles of Generally Accepted Government Auditing Standards (GAGAS). When evaluating the terminology used within GAGAS, it is essential to recognize that "must" denotes requirements that are unequivocally mandatory. However, the term in question is "should," which indeed indicates that certain criteria are presumptively mandatory. This implies that while there may be circumstances where alternative actions can be taken, the standard practice is to follow these guidelines unless justification exists for deviation.

In contrast, terminology such as "may" and "could" reflects options or possibilities rather than obligations. "May" introduces discretion regarding whether to follow a recommendation, while "could" suggests potential actions that are not bound by a definite requirement. Understanding these distinctions is critical for professionals who adhere to GAGAS, as they navigate the standards they must follow in their audit practices. By identifying "should" as the presumptively mandatory term, auditors can ensure they are complying with the necessary standards while allowing for professional judgment in specific situations.