Correct Answer:
C. Provide accountability and stewardship over public resources
Governments account for how public money is raised and spent.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
The main objective of government accounting is to:
Related MCQs
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
A.
Voted separately by the Senate
B.
Free of any audit
C.
Paid only from provincial funds
D.
Not submitted to a vote in the National Assembly, though it may be discussed
Correct answer is:
D. Not submitted to a vote in the National Assembly, though it may be discussed
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Detection risk is the risk that:
A.
Internal control will fail to detect a misstatement
B.
The auditor's procedures will fail to detect a material misstatement
C.
The entity will go bankrupt
D.
The auditor will be sued by a shareholder
Correct answer is:
B. The auditor's procedures will fail to detect a material misstatement
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Which body issues the International Standards on Auditing (ISAs)?
A.
International Accounting Standards Board (IASB)
B.
International Auditing and Assurance Standards Board (IAASB)
C.
International Monetary Fund (IMF)
D.
World Trade Organization (WTO)
Correct answer is:
B. International Auditing and Assurance Standards Board (IAASB)
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Inherent risk is the susceptibility of an assertion to material misstatement:
A.
After considering all internal controls
B.
Only due to auditor's errors
C.
Before considering any related internal controls
D.
Only in government organizations
Correct answer is:
C. Before considering any related internal controls
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Fiscal policy is the use of:
A.
Interest rates and money supply by the central bank
B.
Exchange rate controls only
C.
Government spending and taxation to influence the economy
D.
Foreign aid only
Correct answer is:
C. Government spending and taxation to influence the economy
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Dividends are Rs. 30,000 and net income is Rs. 100,000. The dividend payout ratio is:
A.
70%
B.
3.3%
C.
300%
D.
30%
Correct answer is:
D. 30%
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