Accounting Q&A · Government Accounting · Topic 6
Practise 25 government accounting questions on audit mandates and oversight using five worked public-sector cases. Try each answer before revealing it. The cases are illustrative. Check the applicable reporting framework and local budget rules.
An audit is asked to determine whether spending met procurement rules
1. What should the accountant establish?
Identify a compliance audit objective and suitable criteria.
2. What evidence should be obtained?
Obtain the mandate and applicable procurement requirements.
3. What calculation or procedure would help?
Test transactions against approvals and tender evidence.
4. What limitation or alternative matters?
A compliant purchase may still represent poor value.
5. What should happen next?
Report compliance findings within the defined scope.
An auditor finds repeated approval overrides
6. What should the accountant establish?
Determine the scope and cause of the control issue.
7. What evidence should be obtained?
Gather exception logs, delegated powers and approvals.
8. What calculation or procedure would help?
Test whether overrides were justified and independently reviewed.
9. What limitation or alternative matters?
An override can be authorised in defined circumstances.
10. What should happen next?
Communicate findings to governance and track remediation.
A public works audit compares service outcomes to objectives
11. What should the accountant establish?
Assess effectiveness as part of performance audit.
12. What evidence should be obtained?
Gather objectives, targets and verified output and outcome data.
13. What calculation or procedure would help?
Compare results with targets and consider external influences.
14. What limitation or alternative matters?
Meeting an output target does not prove the intended outcome.
15. What should happen next?
Explain findings and the limits of attribution.
A legislature requests follow-up on prior findings
16. What should the accountant establish?
Check whether agreed actions were implemented and worked.
17. What evidence should be obtained?
Obtain action plans and evidence from responsible officials.
18. What calculation or procedure would help?
Retest controls and verify completion claims.
19. What limitation or alternative matters?
A closed action in a tracker may still be ineffective.
20. What should happen next?
Report unresolved or recurring deficiencies.
The audit body faces pressure to remove an adverse finding
21. What should the accountant establish?
Protect independence and evidence-based reporting.
22. What evidence should be obtained?
Preserve working papers and record the communication.
23. What calculation or procedure would help?
Check findings against evidence, criteria and the audit mandate.
24. What limitation or alternative matters?
Auditees can respond to factual findings without controlling conclusions.
25. What should happen next?
Use authorised escalation and reporting channels.