Public Sector Accounting & Auditing MCQs

DDOs are authorized to prepare bills and make payments within sanctioned budgets.

Post-audit takes place after the transaction or payment has occurred.

Irregularity is a breach of rules; it may or may not involve loss.

The Department of the Auditor-General of Pakistan is the national SAI.

INTOSAI is the global umbrella organization for SAIs.

It is a foundational INTOSAI document on audit principles and independence.

Adopted in 2007, it sets eight core principles for the independence of SAIs.

Regularity audit examines financial statements and compliance with laws and regulations.

It is also known as value-for-money audit.

Propriety goes beyond legal sanction to ask whether public money was spent wisely and honestly.

Under annuality, grants lapse at year end unless law allows otherwise.

PAC is a parliamentary committee that scrutinizes the spending of public money.

Article 168 of the Constitution provides for appointment by the President.

Article 168 fixes a four-year term or age 65, whichever comes first.

Article 171 deals with reports of the Auditor-General relating to Federation accounts.

Article 169 deals with the audit of accounts of the Federation and the Provinces.

Governments account for how public money is raised and spent.

Each fund is a separate set of accounts for a specific purpose.

It shows savings or excesses against each grant.

It checks that money was spent for the authorized purpose and not beyond the grant.

It is a budgetary adjustment of funds within sanctioned limits and rules.

Departments must surrender anticipated savings so they can be used elsewhere.

The IPSASB, under IFAC, develops IPSAS for public sector entities.

Cash basis ignores receivables and payables until cash moves.

Accrual accounting records assets, liabilities, revenues and expenses as they arise.