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Collusion often defeats preventive and detective controls. Only a combination of strong monitoring, audits, and ethics programs mitigates it. Preventive (Option A) and detective (Option B) help but cannot fully stop collusion. Monitoring (Option C) reduces risks but not alone. Exam 3 stresses layered defenses. Option D is correct.

A regressive tax places a larger relative burden on lower-income taxpayers. Sales and excise taxes are examples. Progressive taxes (Option A) increase with income. Proportional (Option B) applies the same rate. Excise taxes (Option D) apply to specific goods but can be regressive in effect. Exam 1 stresses tax structures and impacts. Option C is correct.

OMB’s Uniform Guidance consolidated federal grant management requirements into a single framework. CFO Act (Option A) requires financial statements. GPRA (Option B) mandates performance reporting. Antideficiency (Option C) restricts overspending. Exam 1 stresses federal financial oversight. Option D is correct.

The GAO “Yellow Book” establishes standards for governmental auditing. General standards cover auditor competence, integrity, objectivity, and independence. Fieldwork standards (Option A) address planning and evidence. Reporting standards (Option C) relate to audit communications. Performance standards (Option D) apply in performance audits, not across all audits. CGFM Exam 3 includes familiarity with GAO standards. Therefore, Option B is correct.

Interperiod equity is the principle that revenues should cover current services, preventing burden-shifting to future taxpayers. Fiscal sustainability (Option A) is broader. Accountability (Option B) is the overall purpose. Efficiency (Option D) is operational. Exam 2 highlights GASB’s focus on interperiod equity. Option C is correct.