Challenge Your Exam Readiness With Our Free CGFM Practice Questions

CGFM Exam 3 emphasizes that effective internal control requires relevant, timely information and communication to enable staff to carry out responsibilities. In this scenario, management implements schedules, reminders, and assignment of responsibility—mechanisms that transmit the right information to the right people at the right time. These practices support control activities (e.g., on-time reporting) by ensuring requirements are known and tracked. While tone at the top (control environment) matters, Option B alone is too narrow because the actions are operational communication tools and procedures. Risk tolerance (Option C) is a governance concept; setting tolerance does not itself ensure operational compliance. External assurance by auditors (Option D) is separate from internal control; audits may detect issues after the fact but do not constitute management’s control process. Therefore, Option A best fits: information and communication are being structured to reinforce compliance with grant reporting deadlines—aligning with Green Book and COSO concepts embedded in Exam 3, including establishing responsibilities, communicating expectations, and enabling follow-through to mitigate compliance risks.