05-10-2019 Account Test (Higher) - Introduction to Indian Government Accounts and Audit 2

 FINAL ANSWER KEY 

Paper: Introduction to Indian Government Accounts and Audit & Kerala Account Code Vol 1 

Date of 

Examination 

05-10-2019 

Question1:-Of the  following which is not a parliamentary standing finance committee? 

        A:-Public accounts committee 

        B:-Estimate committee 

        C:-Business Advisory committee 

        D:-Committee on public undertakings 

        Correct Answer:- Option-C 

Question2:-In respect of Public works stores, issue rate of an article of stock is fixed 

        A:-At the beginning of each year 

        B:-In September each year 

        C:-In July each year 

        D:-as and when stock is procured 

        Correct Answer:- Option-A 

Question3:-A chronological record of quantity only of receipts issues, and balance of each article of stock kept by store keeper is known as         A:-Store ledger 

        B:-Bin card 

        C:-Inventory register 

        D:-None of these 

        Correct Answer:- Option-B 

Question4:-The priced store ledger maintained in the Divisional Office in the prescribed form is to be closed for both the quantities and value         A:-At the end of each month for preparation of monthly accounts 

        B:-At the end of each calendar year 

        C:-At the end of each financial year 

        D:-At the end of each half year 

        Correct Answer:- Option-A 

Question5:-What are the important points to be seen by audit in respect of periodical verification of stock? 

        A:-A certification of verification is recorded by a responsible authority 

        B:-The system of verification is adequate and proper 

        C:-Discrepancies found are investigated and adjusted 

        D:-Physical verification is done by staff independent of those entrusted with the physical custody and also points mentioned in A,B, C above         Correct Answer:- Option-D 

Question6:-The sums authorised by the appropriation Act are intended to cover 

        A:-All the charges for the financial year concerned 

        B:-Does not cover charges for liability of past years 

        C:-Does not cover amounts to be adjusted in the accounts of the year 

        D:-Not only charges for the financial year concerned but also liabilities of past years to be paid and charges to be adjusted in the accounts of that year 

        Correct Answer:- Option-D 

Question7:-An important duty of audit relating to borrowings by Govt is _____ 

        A:-To see that the proceeds of loan are properly brought to account and they are expended only on objects for which the loans were originally raised or spent in accordance with sound principles of public finance 

        B:-Whether the borrowing is within the limits authorised 

        C:-Whether there is adequate response 

        D:-Whether the borrowing is duly authorised under rules/regulations 

        Correct Answer:- Option-A 

Question8:-In  a parliamentary democracy , audit is _____ 

        A:-to find how and in what manner public money is spent 

        B:-to find irregularities in public spending

        C:-the main instrument to secure accountability of the executive to the legislature 

        D:-to ensure funds spent are covered by sanction 

        Correct Answer:- Option-C 

Question9:-It is said that the purpose of both Audit and Administration are the same. What is it? 

        A:-to help to maintain accounts properly 

        B:-to ensure moneys allotted are spent diligently 

        C:-to maintain transparency 

        D:-to see that departments keep to the path of financial rectitude and that the resources of the state are efficiently utilised with due regard to consideration of economy and financial propriety 

        Correct Answer:- Option-D 

Question10:-Legislative control over the finance is exercised mainly in two stages. What are they? 

        A:-By voting on demands for grands and by subjecting the accounts to scrutiny 

        B:-By subjecting the annual budget to a detailed discussion and through the system of committees 

        C:-(i)at the time of policy making. 

(ii) controlling the implementation of the policy 

        D:-by scrutinising the demands for grands and review of expenditure 

        Correct Answer:- Option-C 

Question11:-What is the device by which the transfer of funds between treasuries and sub-treasuries  and branches and agencies of Reserve Bank is effected for the most part? 

        A:-through the medium of currency chests 

        B:-Physical transfer from one station to another 

        C:-Remittances by special railway wagons 

        D:-None of these 

        Correct Answer:- Option-A 

Question12:-Govt accounts are designed to enable govt. 

        A:-to know how much money have been received against the forecast 

        B:-to know how much money has been spent against the budget provision 

        C:-to determine how much money it need to collect by way of taxes from people in order to maintain its necessary activities at the proper standard of efficiency 

        D:-to review its own performance 

        Correct Answer:- Option-C 

Question13:-What factors sufficiently provide for the detections and preventions of fraud in the Govt system of audit?         A:-Effective internal audit 

        B:-the various checks prescribed for executive officers supplemented by occasional local audit and continuous central audit         C:-effective control by superior officers 

        D:-compliance with rules and regulations laid down 

        Correct Answer:- Option-B 

Question14:-Expenditure of grant in aid to local bodies for the purpose of creating assets which will belong to these local bodies is to be classified as _____ 

        A:-Capital expenditure as an asset is being created 

        B:-Revenue Expenditure. It Cannot be ordinarily classified as capital expenditure as assets do not belong to Govt         C:-May be debited to capital if Govt so desires 

        D:-May be debited to revenue/ capital based on budget provision 

        Correct Answer:- Option-B 

Question15:-The source from which accounts along with the  supporting documents flow to AG is ___ 

        A:-Dist treasuries 

        B:-Public works Divisions, forest divisions, etc which are authorised to make payment through  cheques 

        C:-inter-state suspense accounts from other accountant general and clearance memo relating to inter Govt adjustments in the books of reserve bank 

        D:-All the above sources detailed at A, B, C above and further all adjustments carried out in the office of the AG         Correct Answer:- Option-D 

Question16:-Who has the authority to open all the prescribed detailed heads and to open any new detailed head where absolutely necessary to exhibit and classify Govt transactions in the accounts?

        A:-Accountant general 

        B:-Director of treasuries 

        C:-Finance secretary 

        D:-None of them 

        Correct Answer:- Option-A 

Question17:-The heads of accounts in the five tier system of classification primarily meant for itemised control over expenditure and indicate the nature of expenditure in terms  of inputs such as salaries, office expenses etc , are known as ________ 

        A:-Minor heads 

        B:-Sub minor heads 

        C:-Detailed heads 

        D:-None of these 

        Correct Answer:- Option-C 

Question18:-Discounts given to agents on sale of priced Govt Publications are to  be classified under the detailed head __________         A:-Publications 

        B:-Office expenses 

        C:-Advertising, sales and publicity expenses 

        D:-None of these 

        Correct Answer:- Option-A 

Question19:-In the case of transactions between two state Govts adjustment of a transaction (Not covered by the provision of constitution) shall be made__________ 

        A:-as decided by the central govt 

        B:-as decided by the accountant general concerned 

        C:-as decided by the finance secretaries 

        D:-in such manner and to such extent as may be mutually agreed upon by the Govts concerned 

        Correct Answer:- Option-D 

Question20:-In which case when any Govt land (with buildings) is transferred from one service dept to another service dept rules, provide for collection of market value? 

        A:-in no case 

        B:-such charges are leviable in case the value of property exceed Rs. 10 lakhs 

        C:-collecting market value is permissible if the transfer is for specific purpose of starting any industry or commercial undertaking         D:-rule provide for collection of only 50% of the market value 

        Correct Answer:- Option-C 

Question21:-Which provision in constitution provides for appointment of chief ministers of state by the Governor?         A:-Art 264 

        B:-Art 164 

        C:-Art 74 

        D:-None of these 

        Correct Answer:- Option-B 

Question22:-A candidate who contested in an elections to legislature becomes a MLA as soon as ____ 

        A:-he is notified as winning candidate by the election commissioner 

        B:-He signs the register at assembly secretariat as M.L.A 

        C:-he takes the prescribed oath before the Honourable speaker or anyone duly authorised by the Governor         D:-Date of notification in the official Gazette 

        Correct Answer:- Option-C 

Question23:-Whenever the House of People is dissolved_________ shall not vacate his office until immediately before the first meeting of the House of people after dissolution. 

        A:-Dy speaker 

        B:-Leader of the house 

        C:-Speaker 

        D:-None of these 

        Correct Answer:- Option-C 

Question24:-Of the following which item of expenditure is not charged on the consolidated fund of India?

        A:-Salary and allowances speaker of Lok Sabha 

        B:-Salary and allowances of Dy Speaker of Lok Sabha 

        C:-Salary and allowances of secretary general of Lok Sabha 

        D:-Salary and allowances of Chairman of Rajya Sabha 

        Correct Answer:- Option-C 

Question25:-Of the following which bill shall be deemed to  be a money bill under provisions of the constitution (in respect of state legislatures)         A:-Appropriation of money out of consolidated fund of the state 

        B:-A bill dealing with punishments on crimes against women 

        C:-A bill for protecting the environment 

        D:-A bill dealing with pollution control (preventive measures) 

        Correct Answer:- Option-A 

Question26:-What is the time limit specified in the constitution for validity of an ordinance promulgated by the Governor of a state?         A:-Three months from the date of issue 

        B:-Two months form the date of issue 

        C:-Such an ordinance shall cease to operate at the expiration of six weeks from reassembly of the legislature         D:-None of these 

        Correct Answer:- Option-C 

Question27:-The term of office of Governor is ____ years under the constitution 

        A:-No term specified. He shall hold office during the pleasures of the president 

        B:-Six 

        C:-Five 

        D:-None of these 

        Correct Answer:- Option-A 

Question28:-Removable by impeachment is not provided for in the case of incumbent of one of the following posts. Which is it?         A:-High court judges 

        B:-Governor 

        C:-Supreme court judges 

        D:-Chief justice of supreme court 

        Correct Answer:- Option-B 

Question29:-All contracts made in the exercise of the executive power of the state shall be expressed to be made by the _____         A:-Council of ministers 

        B:-Governor 

        C:-Chief secretary to govt 

        D:-None of these 

        Correct Answer:- Option-B 

Question30:-The Finance commission  constituted now (2018) by the president of India under the chairmanship of Sri. N.K. Singh is ____         A:-12th 

        B:-13th 

        C:-15th 

        D:-14th 

        Correct Answer:- Option-C 

Question31:-What is the device adopted for correcting an error of classification in the accounts clearing an outstanding item under debt, deposit or remittance head? 

        A:-transfer entries 

        B:-plus and minus memorandum 

        C:-alternation memo 

        D:-none of these 

        Correct Answer:- Option-A 

Question32:-From whom the State Govt gets a monthly accounts of its transactions  during a month showing inter alia opening and closing cash balance followed by a major head wise summary of transactions during and  progressive to end of the month? 

        A:-Director of Treasuries

        B:-Accountant general 

        C:-Director of state audit 

        D:-Dist treasury officers 

        Correct Answer:- Option-B 

Question33:-Under which section of C & AG (Duties powers and conditions of service) Act 1971 (D.P. C Act) Audit of other bodies or authorities which is not entrusted to him, can be entrusted to  him in public interest by the president or Governor , after prior consultations with him? 

        A:-Section 10 

        B:-Section 20 

        C:-Section 16 

        D:-Section 19 

        Correct Answer:- Option-B 

Question34:-What is the criterion adopted to determine whether a company registered under the companies act is a Govt company or not?         A:-A company in which the central Govt or any State Govt or Govts or both together hold not less than 51% of the paid up share capital         B:-A company in which central Govt alone holds not less than 50% of paid up share capital 

        C:-A company in which central or a state Govt together hold not less than 50% of the paid up share capital         D:-A company declared so by the registrar of Companies 

        Correct Answer:- Option-A 

Question35:-Which committee is termed as Parliamentary committee? 

        A:-A committee which is appointed or elected by the house or nominated by the presiding officer and which works under his directions         B:-A committee consists of members of parliament 

        C:-A committee of members of parliament constituted by the president for a specific purpose 

        D:-None of these 

        Correct Answer:- Option-A 

Question36:-Which committee of parliament may call for details of expenditure charged on the consolidated fund of India and scrutinise whether the classifications of the items of expenditure between 'voted' and 'charged'  has been done strictly in accordance with the provisions of constitution and Acts of parliament? 

        A:-Public Accounts Committee 

        B:-Committee on Public  Undertaking 

        C:-Estimates committee 

        D:-Subject committee 

        Correct Answer:- Option-C 

Question37:-Who appoints chairman of each finance committee of parliament? 

        A:-Speaker, from among the members of the committee 

        B:-By members themselves 

        C:-By drawing up lots 

        D:-The senior most member is appointed as Chairman 

        Correct Answer:- Option-A 

Question38:-How many members each from Lok Sabha  and Rajya Sabha are elected to the Public Accounts Committee and committee on Public Undertakings? 

        A:-15 each 

        B:-15 from Lok sabha and 7 from Rajya sabha 

        C:-15 from Lok sabha and 10 from Rajya sabha 

        D:-12 from Lok sabha and 10 from Rajya Sabha 

        Correct Answer:- Option-B 

Question39:-Of the following audit checks which one is the criteria adopted while conducting financial propriety audit?         A:-Whether a proper voucher is available for expenditure incurred 

        B:-Whether the expenditure is covered by valid sanction 

        C:-Whether budget provision exists to cover the expenditure 

        D:-While sanctioning the expenditure the authority has used its power to pass an order which will be directly or indirectly to its own advantage 

        Correct Answer:- Option-D 

Question40:-It is the duty of Audit to bring to the notice of the executive through its reports ____

        A:-Various activities of departments of Govt 

        B:-in what manner various programs have been undertaken 

        C:-whether economy in the expenditure of public money is enforced 

        D:-Wasteful expenditure in public administration and infructuous expenditure 

        Correct Answer:- Option-D 

Question41:-The fundamental object of audit is ____ 

        A:-to ascertain  whether the prescribed rules and orders are followed 

        B:-to ascertain whether rules are adequate to safeguard the interests of Govt 

        C:-To secure real value for the tax payers money 

        D:-none of these 

        Correct Answer:- Option-C 

Question42:-The most important function of audit in respect of Audit of Receipts of Govt is ___ 

        A:-To ensure that moneys collected as taxes and levies are bought to account 

        B:-To ensure that demand has been made in all cases where it is due 

        C:-To see that adequate regulations and procedures have been framed by the revenue dept to secure an effective check and to ensure by test checks that such regulations and procedures are actually being carried out 

        D:-To see that effective action is pursued to collect dues 

        Correct Answer:- Option-C 

Question43:-Not only any obvious errors in computation of assessment of Taxes etc, can be pointed out by Audit but also it may ____         A:-Suggest measures for setting them right 

        B:-Take steps for rectifying them 

        C:-Audit should leave to the administrative authority to set right errors by recourse to such legal steps as they deem necessary         D:-Insist for a particular course of action 

        Correct Answer:- Option-C 

Question44:-The basis and procedure for levy and collection of taxes and non tax revenues of State Govts are regulated by _____         A:-laws as are enforceable in different states 

        B:-rules formed under relevant Acts 

        C:-Judicial decisions and executive instructions interpreting the provisions of Acts and Rules 

        D:-All items specified at A,B,C above 

        Correct Answer:- Option-D 

Question45:-Central audit is by and large _____ 

        A:-Regulatory and propriety audit 

        B:-tests audit 

        C:-routine 

        D:-supplementary audit 

        Correct Answer:- Option-A 

Question46:-The primary objects of inspection of a public works division by audit are ____ 

        A:-to see whether the prescribed registers are maintained 

        B:-the registers are submitted to the division officer periodically for scrutiny 

        C:-whether the registers are closed periodically 

        D:-for a test audit of accounts and vouchers not rendered to central audit to satisfy that the initial account from which the monthly account is compiled and rendered to audit are properly kept in the form prescribed 

        Correct Answer:- Option-D 

Question47:-Which authority determines the periodicity scope and extent of local audit of departmental offices and offices of Authorities and Bodies whose audit is entrusted in the C & AG? 

        A:-Local AG 

        B:-State Govt 

        C:-C & AG 

        D:-None of them 

        Correct Answer:- Option-C 

Question48:-The inspection report drafted by the officer in charge of the local audit party is closed or finalised after ___

        A:-Completion of the prescribed checks 

        B:-Ensuring no unusual transaction has taken place 

        C:-Getting replied to audit enquiries 

        D:-Officer in charge of the office audited has to be given an opportunity for reading and discussing and suggesting any modifications         Correct Answer:- Option-D 

Question49:-What are the points to be seen in audit while conducting audit of orders or allotment or re-appropriation?         A:-Allotment is not in excess of those available under the grant or appropriation 

        B:-The mount appropriated is available under the unit concerned 

        C:-The order is issued by competent authority and no amount is re-appropriated in respect of expenditure falling under the 'new service         D:-All the points covered by A,B, C above 

        Correct Answer:- Option-D 

Question50:-Why is it held that audit is not entitled to make independent enquiries among the tax  payers or general public?         A:-they are not trained in that area 

        B:-it would create confusion 

        C:-it would be practically difficult to lay down regulations in this regard 

        D:-this is because such action is held to be an encroachment on the function of the executive 

        Correct Answer:- Option-D 

Question51:-Expenditure on Govt residential buildings is accounted for under the Major Head ___ 

        A:-283 housing, 483 capital outlay on Housing 

        B:-2059 public works, 4059 capital outlay on public works 

        C:-2216 housing , 4216 capital outlay on housing 

        D:-none of these 

        Correct Answer:- Option-C 

Question52:-The TA and daily allowance paid to officers of State Govt appointed as members of committees and commission set up by Govt of India are governed by the __________ 

        A:-central rules and borne by the central govt 

        B:-state rules, but borne by the central govt 

        C:-state rules and borne by State Govt 

        D:-as decided by the Central Govt 

        Correct Answer:- Option-B 

Question53:-The operation of some departments of Govt sometimes include undertakings of a commercial or a Quasi Commercial character. In such cases to ascertain their financial results certain sets of accounts are to be maintained which are generally known as 

        A:-commercial accounts 

        B:-trading accounts 

        C:-double entry accounts 

        D:-proforma accounts 

        Correct Answer:- Option-D 

Question54:-What is the procedure stipulated in the rules when under orders of Govt interest charges during the process of construction of a project are met from capital and later on it started deriving revenue when commissioned? 

        A:-No further adjustments is envisaged 

        B:-It is left to the discretion of Govt to order for making any adjustments 

        C:-Writing back of capitalized interest should from the first charge in such cases 

        D:-Writing back of capitalised interest is called for if surplus revenue is derived within two years of commissioning         Correct Answer:- Option-C 

Question55:-Which Dept of Govt is permitted to make payments for all supplies made and services rendered by any Dept (whether commercial or not) 

        A:-Election Dept 

        B:-Agriculture Dept 

        C:-Survey Dept 

        D:-Public Relation Dept 

        Correct Answer:- Option-A 

Question56:-What is the time span stipulated in the constitution for constituting a Finance Commission by the president for making

recommendations as to the distribution of net proceeds of taxes, grant in etc, between states? 

        A:-three years 

        B:-five years 

        C:-four years 

        D:-six years 

        Correct Answer:- Option-B 

Question57:-What is the restriction on the number of members nominated by the president to represent the Anglo Indian Community in the House of People? 

        A:-Three members 

        B:-Not more than two members 

        C:-One members 

        D:-Four members 

        Correct Answer:- Option-B 

Question58:-Whose prior recommendations is required for moving in either house of Parliament Bills affecting taxation in which states are interested? 

        A:-President 

        B:-Speaker of Lok sabha 

        C:-Chairman of Rajya Sabha 

        D:-Union Council of ministers 

        Correct Answer:- Option-A 

Question59:-Do the provisions of constitution prevent a discussion in the Legislature on budget estimates relating to expenditure charged upon the consolidated fund of a State? 

        A:-Yes. Such items cannot be discussed 

        B:-Yes. Discussion is permissible only if Majority of Members want it 

        C:-Members cannot insists for discussion as a matter of course 

        D:-There is no provision preventing the discussion in the legislature of any such estimates 

        Correct Answer:- Option-D 

Question60:-Is there any provision in the constitution to the effect that the president may with the consent of a State entrust either conditionally or unconditionally to that Govt functions in relation to any matter to which the executive power of the Union extents? 

        A:-no such provision 

        B:-yes, under Art 357 

        C:-though there is no provision it can be done under an executive order 

        D:-Yes, Art 258 (1) stipulates this power of the union 

        Correct Answer:- Option-D 

Question61:-The reports of C & AG relating to the accounts of a State shall be submitted to ____ 

        A:-legislature 

        B:-Finance dept 

        C:-Governor of state who shall cause them to be laid before the legislature 

        D:-Speaker of the Assembly 

        Correct Answer:- Option-C 

Question62:-Is there any restriction in the constitution regarding to the borrowing powers of the states? 

        A:-No restriction 

        B:-States can borrow only within such limits as fixed by the legislature from time to time by law 

        C:-Yes. The limit is fixed by Reserve bank of India 

        D:-Yes. only for specified purpose States can borrow 

        Correct Answer:- Option-B 

Question63:-Which house of parliament shall not be subject to dissolution after a specific period? 

        A:-House of people 

        B:-The council of states 

        C:-House of people when a discussion on an official bill presented is not over 

        D:-When parliament is discussing money bills 

        Correct Answer:- Option-B

Question64:-Which dignitaries  have the right to speak in and otherwise to take part in the proceedings of either House of Parliament , any joint sittings of the houses and any committee of parliament of which he may be a member ____ 

        A:-Every cabinet minister and prime minister 

        B:-Prime minister and leader of either house 

        C:-Every minster and the Attorney general of India 

        D:-None of these 

        Correct Answer:- Option-C 

Question65:-The president shall address both Houses of Parliament assembled together and inform of the causes for its summoning 

        A:-at the commencement of the first session after each general election to the house of people and at the commencement of first session of each year 

        B:-Commencement of budget session of each year 

        C:-Once during the course of a year 

        D:-Whenever the president wants to convey any message 

        Correct Answer:- Option-A 

Question66:-Ministers (other than the chief minister) shall be appointed by the Governor on the advice  of the Chief minister and they shall hold office _______ 

        A:-till dissolution of the legislature 

        B:-as long as the chief minister holds office 

        C:-during the pleasure of the governor 

        D:-till the chief minister allows them 

        Correct Answer:- Option-C 

Question67:-The terms of office of Advocate General of a State is ________ years as per the constitution. 

        A:-5 years 

        B:-He shall hold the office during the pleasure of the governor 

        C:-as fixed by the council of ministers 

        D:-none of these 

        Correct Answer:- Option-B 

Question68:-What is the prescribed qualifications in the constitution for a person for appointment as a judge of a High Court?         A:-has held a judicial office in the country 

        B:-has been an advocate for seven years 

        C:-has held atleast 10 years a judicial office in India 

        D:-Should satisfy either condition at (c) above or has for atleast 10 years been an advocate of a High Court or two or more High Courts in succession 

        Correct Answer:- Option-D 

Question69:-Election to Rajya Sabha is conducted by ________ 

        A:-Chairman of Rajya Sabha 

        B:-Election commission 

        C:-Supreme court 

        D:-None of them 

        Correct Answer:- Option-B 

Question70:-Under the constitution is it permissible for the Vice president to perform the duties of the Chairman of Rajya Sabha when he is entrusted with the functions of the president? 

        A:-No. He shall not perform such duties 

        B:-Yes. It is permissible 

        C:-It is left to the Rajya sabha to decided the issue 

        D:-It is left to the discretion of the Vice President 

        Correct Answer:- Option-A 

Question71:-Who is regarded as a friend, philosopher and guide of the committees of public accounts and public undertakings?         A:-Speaker of the Lok Sabha 

        B:-Chairman of Rajya Sabha 

        C:-Leader of the house 

        D:-Comptroller and Auditor General

        Correct Answer:- Option-D 

Question72:-Who lays the reports of the committee on the Public Accounts and Public Undertakings before Rajya Sabha?         A:-A member of the respective committee as authorised by the committee/chairman 

        B:-Minister of Finance 

        C:-Vice Chairman 

        D:-None of them 

        Correct Answer:- Option-A 

Question73:-Which financial committee is empowered to examine whether the affairs of the public undertakings are being managed in accordance with sound business principles and prudent commercial practices? 

        A:-Public accounts committee 

        B:-Committee on public undertakings 

        C:-Estimates committee 

        D:-None of these 

        Correct Answer:- Option-B 

Question74:-From which reports of the C & AG do you get a glance of accounts of Receipts and Disbursements by Major heads of accounts of all Govts in the revenue account, capital account and all other sections (union and states) 

        A:-Audit reports of various states 

        B:-Appropriation accounts of various states 

        C:-Finance accounts of various states 

        D:-Combined Finance and revenue accounts of the Central and State Govts in India 

        Correct Answer:- Option-D 

Question75:-Why is it not possible to value all assets of Govt and include their value in the Annual Financial Accounts?         A:-it is a time consuming process 

        B:-may not be advantageous 

        C:-the great bulk of assets of Govt are such a nature that it is impossible to place upon them a money value of sufficient accuracy to justify their inclusion in a document of the nature of a balance sheet 

        D:-None of these 

        Correct Answer:- Option-C 

Question76:-Why is it stipulated that all service books of non gazetted employees are subjected to verification in local audit at fixed intervals?         A:-it is an important service record 

        B:-it is proof for continuation in service 

        C:-to check whether qualifications are recorded in the service book 

        D:-because the service books are the only documents for verification of pension 

        Correct Answer:- Option-D 

Question77:-What are the special points  to be seen during audit of transactions under suspense heads? 

        A:-there are valid reasons for keeping them under 'suspense' 

        B:-unadjusted balances continue to represent bonafide assets  or liabilities of Govt capable of being realised or settled         C:-satisfactory action towards their realisation or settlement is being taken by the official concerned 

        D:-to ensure compliance with all the points stated at A, B, C above 

        Correct Answer:- Option-D 

Question78:-What is the essential difference between the levy and collection of a tax and a non tax revenue? 

        A:-there is no differences as far as collection is concerned 

        B:-levy and collection of tax are regulated by provision of law while the non tax revenue is governed by the general financial rules and regulations. While the former is a quasi judicial act, the latter is administrative decision 

        C:-generally collection of tax is more important than collection of a non tax revenue 

        D:-there is legal remedy for tax levy while no such remedy lies for non tax 

        Correct Answer:- Option-B 

Question79:-Of the various initial accounts records maintained in public works division some of which are listed below, which one is of greatest importance? 

        A:-Works abstracts 

        B:-Stock accounts 

        C:-Measurements Books

        D:-Contractors ledger 

        Correct Answer:- Option-C 

Question80:-Value cum numerical account of store held in a public works division is called _______ 

        A:-stock account 

        B:-goods received sheets 

        C:-priced store ledger 

        D:-bin cards 

        Correct Answer:- Option-C 

Question81:-The payments of leaves salary and allowances in respect of earned leave surrendered by the State Govt employees on deputation to the central Govt will be the liability of _____ Govt 

        A:-Central Govt 

        B:-State Govt 

        C:-as mutually agreed upon 

        D:-will be equally shared by the central and the state govt. 

        Correct Answer:- Option-B 

Question82:-Expenditure on construction of staff quarters of a Medical college Hospital forming part of a project is debitable to ____         A:-Major head relating to housing 

        B:-Major head of public works building 

        C:-Major head of relevant function ie medical 

        D:-any of these major heads as ordered by Govt 

        Correct Answer:- Option-C 

Question83:-A service receipt of which full particulars are not available is to be credited under the rules to _______         A:-8658-suspense account 

        B:-to minor head 'other receipt' under revenue head to which it appears to belong 

        C:-the head, the treasury officer species 

        D:-none of these 

        Correct Answer:- Option-B 

Question84:-What is the stipulated procedure if money due to Govt has actually received by a Govt servant and is than lost before remittance into Treasury under proper head? 

        A:-It should be brought as a receipt  into the consolidated fund or public accounts as the case may be and then shown on the expenditure side as loss under a separate head 

        B:-Money lost is to be realized from the official concerned and then brought  to account 

        C:-such money need not be shown as receipt till the amount is made good 

        D:-none of these 

        Correct Answer:- Option-A 

Question85:-The single major head of account under which the transactions of contingency fund of the State (part II Govt accounts) is denoted by the number ____ 

        A:-6700 

        B:-4000 

        C:-7999 

        D:-8000 

        Correct Answer:- Option-D 

Question86:-Every person acting as president or discharging the function of the president shall before entering upon his office make and subscribe in the presence of _____ an oath or affirmation in the prescribed form in the absence of the chief justice of India. 

        A:-Any Judge of the Supreme Court 

        B:-Senior most judge of the supreme court available 

        C:-Supreme Court Judge nominated for this purposed by Chief justice 

        D:-Chief Justice of Delhi high court 

        Correct Answer:- Option-B 

Question87:-How many members can be nominated by the president to the council of states as per constitution?         A:-fifteen 

        B:-ten

        C:-twelve 

        D:-twenty 

        Correct Answer:- Option-C 

Question88:-Of the following who has the right to speak in and otherwise to take part in the proceedings of the Legislative assembly of the State?         A:-Advocate General 

        B:-Senior most Govt pleader 

        C:-Any govt pleader 

        D:-Additional advocate general 

        Correct Answer:- Option-A 

Question89:-It is whose duty under the constitution to review the financial position of the panchayats/municipalities and to make recommendation as to the principles which should govern the distribution between the state and the Panchayat/municipality  of the net proceeds of taxes , duties, tolls, and fees leviable by the state etc 

        A:-State finance commission 

        B:-Central Finance commission 

        C:-An expert team appointed by the cabinet from time to time 

        D:-None of these 

        Correct Answer:- Option-A 

Question90:-Who has the exclusive power to enact laws on subjects  not enumerated in the concurrent list or state list? (of the seventh schedule of the constitution) 

        A:-president 

        B:-council of ministers 

        C:-parliament 

        D:-supreme court 

        Correct Answer:- Option-C 

Question91:-Under the rules framed by Govt of India there are ________ stages in the project for a work to be executed. What are they?         A:-two stages-administrative sanction and technical sanction 

        B:-two stages-expenditure sanction and technical sanction 

        C:-three stages-expenditure sanction, technical sanction, allotment or re-appropriation of funds 

        D:-none of these 

        Correct Answer:- Option-C 

Question92:-Who appoints auditors of Govt companies? 

        A:-Company Board of Directors 

        B:-Company Law Board on the advice of C & AG 

        C:-Share holders of the company 

        D:-None of these 

        Correct Answer:- Option-B 

Question93:-What are the dual purpose of Audit reports placed before Legislatures? 

        A:-Compliance with the requirements of the constitution and to bring its findings to them 

        B:-to the Govt the reports will show how far its subordinates have complied with rules and orders, to the Legislature how far the moneys placed at the disposal of Govt were regularly and prudently spent 

        C:-Expose the short fall in complying with the regulations by the officials, for the Legislature high light major cases of wastages of public money 

        D:-Secure accountabilities of executive to legislature and to the Legislature a general financial review 

        Correct Answer:- Option-B 

Question94:-The detection and prevention of fraud in the Govt system of Audit is provided by ___ 

        A:-Various checks prescribed for the executive officers 

        B:-Occasional local audit 

        C:-Continuous central audit 

        D:-A combined system of all the items mentioned at A, B, and C above 

        Correct Answer:- Option-D 

Question95:-While conducting audit of purchase of stores which among the following is not a check prescribed for it?         A:-Purchase covered by sanctions

        B:-Physical verificaition of stores procured 

        C:-Certificate of quality and quantity are recorded 

        D:-Rates paid agree with those shown in the agreement 

        Correct Answer:- Option-B 

Question96:-Who are the prescribed authorities connected with the preparation of appropriation accounts  of the State and presenting it to the Legislature? 

        A:-Accountant general, comptroller and Auditor general and Governor 

        B:-Accountant general, Finance Dept and Speaker 

        C:-Accountant General, controller General of accounts, and Speaker 

        D:-None of these 

        Correct Answer:- Option-A 

Question97:-The extent of audit of expenditure incurred from a grant in aid by the grantee, depends on ____ 

        A:-Whether the grant is conditional or unconditional 

        B:-Whether the grant is recurring one 

        C:-Whether the grant is for charitable purpose 

        D:-Whether the grant is substantial 

        Correct Answer:- Option-A 

Question98:-In the normal course what are the implied conditions of every grant made by Govt? 

        A:-grant should not be misused and accounts should be maintained 

        B:-accounts connected with the grant should be made available to audit 

        C:-expenditure incurred out of the grant should be got audited by professional auditors 

        D:-grant will be spent upon the object within the time specified, if not within a reasonable time and unspent amount if any should be surrendered 

        Correct Answer:- Option-D 

Question99:-Arrangement  are often to be made so that all Treasuries have at all times sufficient funds to meet the demands on them. Who is the officer entrusted with this task? 

        A:-currency officer of the Reserve Bank 

        B:-director of treasuries 

        C:-State Bank of India 

        D:-Finance dept 

        Correct Answer:- Option-A 

Question100:-What is the main purpose of conducting periodical physical verification through a responsible officer of stock items in a Public work division? 

        A:-To see the manner of keeping the articles of stock 

        B:-Whether adequate storage space is made available 

        C:-To ensure that the stock consists of efficient and necessary articles 

        D:-In additional to (C), to see that the quantity balances as shown in the accounts are correct 

        Correct Answer:- Option-D