Correct Answer:
C. Payments split into smaller amounts to avoid approval limits
Splitting purchases to stay below approval or tender limits is a well-known red flag.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Which of the following is an example of a public sector fraud risk indicator?
Related MCQs
The Federal Consolidated Fund includes:
A.
Only income tax
B.
All revenues received by the Federal Government, loans raised and money received in repayment of loans
C.
Only foreign aid
D.
Only trust money
Correct answer is:
B. All revenues received by the Federal Government, loans raised and money received in repayment of loans
Do you agree with this answer?
The normal balance of a revenue account is:
A.
Debit
B.
Zero
C.
Depends on the auditor
D.
Credit
Correct answer is:
D. Credit
Do you agree with this answer?
An example of a direct tax is:
A.
Sales tax
B.
Customs duty
C.
Excise duty
D.
Income tax
Correct answer is:
D. Income tax
Do you agree with this answer?
The pre-tax cost of debt is 10% and the tax rate is 30%. The after-tax cost of debt is:
A.
7%
B.
3%
C.
13%
D.
10%
Correct answer is:
A. 7%
Do you agree with this answer?
The Auditor-General's functions regarding the audit of accounts of the Federation and the Provinces are given in:
A.
Article 3
B.
Article 48
C.
Article 169
D.
Article 215
Correct answer is:
C. Article 169
Do you agree with this answer?
Diversification can eliminate:
A.
Unsystematic (specific) risk
B.
Systematic risk
C.
Inflation risk of the whole economy
D.
Market risk entirely
Correct answer is:
A. Unsystematic (specific) risk
Do you agree with this answer?
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