Correct Answer:
D. Economy, efficiency and effectiveness of government programs
It is also known as value-for-money audit.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Performance audit in the public sector is concerned with:
Related MCQs
A qualified opinion is issued when misstatements are:
A.
Material but not pervasive
B.
Both material and pervasive
C.
Immaterial
D.
Not found at all
Correct answer is:
A. Material but not pervasive
Do you agree with this answer?
A prepaid expense is shown in the statement of financial position as:
A.
A current liability
B.
A current asset
C.
Equity
D.
Revenue
Correct answer is:
B. A current asset
Do you agree with this answer?
A tax expenditure is:
A.
Money spent on collecting taxes
B.
Salaries of tax officers
C.
Tax refunds paid by mistake
D.
Revenue forgone by government through exemptions, deductions and concessions
Correct answer is:
D. Revenue forgone by government through exemptions, deductions and concessions
Do you agree with this answer?
According to Modigliani and Miller (no taxes), the value of a firm:
A.
Increases as debt increases
B.
Decreases as debt increases
C.
Depends on the dividend policy only
D.
Is independent of its capital structure
Correct answer is:
D. Is independent of its capital structure
Do you agree with this answer?
Net income is Rs. 50,000 and total assets are Rs. 500,000. Return on assets (ROA) is:
A.
1%
B.
25%
C.
100%
D.
10%
Correct answer is:
D. 10%
Do you agree with this answer?
Actual quantity used is 480 units, standard quantity allowed is 500 units and the standard price is Rs. 10. The material usage variance is:
A.
Rs. 200 adverse
B.
Rs. 200 favorable
C.
Rs. 5,000 favorable
D.
Rs. 4,800 adverse
Correct answer is:
B. Rs. 200 favorable
Do you agree with this answer?
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