Correct Answer:
A. Guidelines on auditing precepts for public sector auditing
It is a foundational INTOSAI document on audit principles and independence.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
The Lima Declaration of 1977 is concerned with:
Related MCQs
The four main stages of the budget cycle are:
A.
Printing, signing, filing and storing
B.
Taxation, borrowing, lending and spending
C.
Formulation, legislative approval, execution, and audit and evaluation
D.
Planning, hiring, training and retiring
Correct answer is:
C. Formulation, legislative approval, execution, and audit and evaluation
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The four perspectives of the Balanced Scorecard are:
A.
Sales, purchase, production and finance
B.
Cost, revenue, profit and loss
C.
Assets, liabilities, equity and income
D.
Financial, customer, internal business process, and learning and growth
Correct answer is:
D. Financial, customer, internal business process, and learning and growth
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In capital budgeting, depreciation is relevant only because of its effect on:
A.
Cash outflow at the start
B.
Taxes (the depreciation tax shield)
C.
Working capital
D.
The discount rate
Correct answer is:
B. Taxes (the depreciation tax shield)
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An annuity due is an annuity in which payments are made:
A.
At the end of each period
B.
At the beginning of each period
C.
Only once
D.
Never
Correct answer is:
B. At the beginning of each period
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Lapse of appropriation means that:
A.
Unspent funds carry forward automatically
B.
The budget is increased
C.
Unspent budget allocations expire at the end of the fiscal year
D.
Audit is cancelled
Correct answer is:
C. Unspent budget allocations expire at the end of the fiscal year
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A disclaimer of opinion is given when the auditor:
A.
Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
B.
Finds that the financial statements are fairly presented
C.
Wants to avoid doing the audit work
D.
Finds minor errors in the cash book
Correct answer is:
A. Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
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