Correct Answer:
B. The auditor finds material errors or is unable to obtain sufficient evidence on specific items
Qualifications highlight specific material issues without rejecting the whole accounts.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
A qualified audit certificate on government accounts may be given when:
Related MCQs
Regularity audit in the public sector comprises:
A.
Performance audit only
B.
Financial audit and compliance audit
C.
Tax audit only
D.
Environmental audit only
Correct answer is:
B. Financial audit and compliance audit
Do you agree with this answer?
Performance-based (results-oriented) budgeting:
A.
Lists expenditure by input only
B.
Links funding to outputs and outcomes
C.
Ignores results
D.
Is prepared after the fiscal year
Correct answer is:
B. Links funding to outputs and outcomes
Do you agree with this answer?
Under absorption costing, fixed manufacturing overhead is treated as:
A.
A period cost charged fully to the current period
B.
A selling expense
C.
A product cost included in inventory valuation
D.
An abnormal loss
Correct answer is:
C. A product cost included in inventory valuation
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A sunk cost is a cost that:
A.
Will be incurred in the future
B.
Differs between alternatives
C.
Is always variable
D.
Has already been incurred and cannot be recovered, so it is irrelevant to future decisions
Correct answer is:
D. Has already been incurred and cannot be recovered, so it is irrelevant to future decisions
Do you agree with this answer?
Information is considered material if its omission or misstatement could:
A.
Change the audit fee
B.
Affect only the auditor's working papers
C.
Influence the economic decisions of users taken on the basis of the financial statements
D.
Be corrected without any disclosure
Correct answer is:
C. Influence the economic decisions of users taken on the basis of the financial statements
Do you agree with this answer?
The Public Accounts Committee (PAC) mainly examines:
A.
Election disputes
B.
Foreign policy
C.
Appropriation accounts and audit reports of the Auditor-General
D.
Defense procurement plans before approval
Correct answer is:
C. Appropriation accounts and audit reports of the Auditor-General
Do you agree with this answer?
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