Correct Answer:
B. Expenditure is within the grant and incurred for the purpose approved by the legislature
It checks that money was spent for the authorized purpose and not beyond the grant.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Appropriation audit is carried out to ensure that:
Related MCQs
Audit working papers generally belong to:
A.
The client
B.
The auditor
C.
The shareholders
D.
The regulator in every case
Correct answer is:
B. The auditor
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The Mexico Declaration on SAI Independence emphasizes:
A.
Independence of central banks
B.
Independence of courts only
C.
Independence of political parties
D.
Independence of Supreme Audit Institutions
Correct answer is:
D. Independence of Supreme Audit Institutions
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Audit of local government (local fund) accounts mainly examines:
A.
Only federal taxes
B.
Only foreign aid
C.
Receipts and expenditure of local bodies for compliance with applicable laws and rules
D.
Only defense spending
Correct answer is:
C. Receipts and expenditure of local bodies for compliance with applicable laws and rules
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Operating income is Rs. 150,000 and average invested assets are Rs. 1,000,000. Return on investment (ROI) is:
A.
6.67%
B.
150%
C.
1.5%
D.
15%
Correct answer is:
D. 15%
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Prime cost is the sum of:
A.
Direct materials and factory overhead
B.
Direct labor and factory overhead
C.
Indirect materials and indirect labor
D.
Direct materials, direct labor and direct expenses
Correct answer is:
D. Direct materials, direct labor and direct expenses
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An audit to determine whether an entity has followed applicable laws, rules and regulations is called a:
A.
Statutory audit of cash only
B.
Compliance audit
C.
Forensic valuation
D.
Payroll review
Correct answer is:
B. Compliance audit
Do you agree with this answer?
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