INTRODUCTIN QUESTIONS 02

1. Which  Act of the Parliament or the Legislature provides the authority for spending money for various purposes indicating in Government budget as passed

(A) Finance Act 

(B) Appropriation Act

(C) Contingency Act

(D) None of the above 



2.The Audit Reports laid on the table of the Legislature are examined by which Committee?' 

(A)Estimates Committee 

(B) Finance Committee 

(C)Public Accounts Committee 

(D) Expenditure Committee


3. CAG of India is appointed by whom? 

(A) Prime Minister of India 

(B) Union Public Service Commission 

(C) Chief Justice of India 

(D) President of India


4. In the field of Government accounting a fair and correct view of the financial stewardship of the Government during a year is presented by the 

(A) Annual accounts. 

(B) Ways and means

(C) Reconciliation statements 

(D) None of the above 


5. A Government company as per definitions in the Companies Act means a company in which the Central Government or any State Government or Governments or both together hold not less than………………….percent of the paid up share capital of that company. 

(A) 50 

(B) 51 

(C) 26 

(D) 100


6. The pay and allowances of the Comptroller and Auditor General shall be charged upon which fund? 

(A) Consolidated Fund of India 

(B) Contingency Fund of India

(C) Public Accounts of India 

(D) Consolidated Fund of each State

8. Union Territory is administered by whom?

(A) The President of India 

(B) The Administrator

(C) The Council of Ministers 

(D) The Governor


9 The distribution of the Legislative Powers between the Union and the States is governed by which Article of the Constitution 

(A) Article 166

(B) Article 149 

(C) Article 150

(D) Article 246 


10 Who prescribes the limit for raising money upon security of Consolidated Fund of India? 

(A) Reserve Bank of India. 

(B) Finance Commission of India

(C) The Parliament by Law 

(D) The Union Finance Minister


11. What is the maximum period within which a State Government has to repay the ‘Special Ways and Means' advance taken from the Reserve Bank of India? 

(A) Three months

(B) Six months

(C) One year

(D) One month


12 Audit in relation to borrowings is to see what?

(A) The proceeds to loans are properly brought to account 

(B) They are expended only on objects for which the loans were originally raised 

(C) Whether adequate arrangements are made by Government

for amortization of debt 

(D) All the above


13 From which fund the expenditure of a State, when authorized by the appropriate Legislature is met?

(A) Employees Provident Fund 

(B) Consolidated Fund of the State

(C) Consolidated Fund of India

(D) The Labour Welfare Fund


14. The control of the resource operations of the Government of India and of States is vested in whom?

(A) The Finance Ministry 

(B) Reserve Bank of India

(C) State Bank of India 

(D) The Planning Board


15. Grants-in-aid of revenues to the needy States shall be paid out of which Fund?

(A) Contingency Fund of India

(B) Consolidated Fund of the State 

(C) Consolidated Fund of India 

(D) Public Accounts of India


16. In how many tiers are Government Account classified?

(A) Five 

(B) Four 

(C) Three 

(D) Six


18. In the regular Government accounts, the correct allocationà´µിà´¹ിà´¤ം OF expenditure to revenue or capital heads of accounts is checked by which department?

(A) Indian Audit and Accounts Department 

(B) Finance Department 

(C) Budget Department :

(D) Planning Department 


19. The Government Accounts are kept in how many parts?

(A) Three 

(B) Two 

(C) One 

(D) Five


20. Expenditure on Grants-in-aidധനസഹാà´¯ം to local bodies or institutions (for the purpose of creating assets which will belong to these local bodies or institutions) shall not except in cases specifically authorized by the President on the advice of Comptroller and Auditor General be debited to a head of account.

(A) Revenue

(B) Capital 

(C) Public Accounts

(D) None of these


21. All charges for the first construction and equipment of a project is classified as 

(A) Capital

(B) Revenue 

(C) Either Capital or Revenue 

(D) None of these


22 Assisting the State Public Accounts Committee and Public Undertakings Committee in their examination of the audit reports is the responsibility of whom? 

(A) Secretaries of the Administrative Department to which the audit report pertain to 

(B) Accountant General (Audit) 

(C) Accountant General (Accounts and Entitlement) 

(D) None of the above


23. The Budget Estimates of Defence are presented in how many parts?

(A) Three 

(B)Two 

(C) Five 

(D) Seven


24. In the event of death of a pensioner who was issued a joint pension order, the family pension is paid after getting a death certificate, to the eligible pensioner by whom?

(A) The Accountant General 

(B) The Treasury Officer concerned 

(C) The Head of Department

(D) None of these 


25. What is the broad aim of audit?

(A) To safeguard the financial interest of tax payer 

(B) To safeguard the interests of the Government servants 

(C) To safeguard the interests of the Finance Department

(D) All of these 


26. Bringing wastefulness in public administration and infructuous expenditure to the notice of the Executive Government is the duty of whom?

(A) Head of the Department concerned 

(B) Audit

(C) Vigilance Wing of the Government 

(D) None of these 


27. What is the first principle of Government audit?

(A) to verify the accuracy and completeness of accounts 

(B) to secure that all revenue and receipt collected are brought to account 

(C) to recognize the clear distinction between auditory and administrative functions 

(D) to see that all expenditure and disbursements are authorized


28 What is the fundamental object of audit?

(A) To secure real value for the taxpayers money 

(B) to detect fraud 

(C) to prevent corruption 

(D) none of these


29. While scrutiny of the rules and orders audit should see what?
(A) They are not inconsistent with any provisions of the Constitution or of the laws made there under
(B) They are consistent with the essential requirements of audit and accounts as determined by the Comptroller and Auditor General
(C) In case in which they have not been separately approved by a competent authority, the issuing authority possesses the necessary rule making power
(D) All of these


30. All rules and standing orders of a financial character issued by State Government or by authorities subordinate to State Government are scrutinized finally by whom?

(A) The High Court of the State
(B) The Finance Department of the respective State
(C) The Advocate General of the State
(D) The Accountant General of the State concerned

31. Audit conducted at the Head Quarters Office of the Accountant General (Audit) based on the Accounts, Vouchers, Schedules and other documents submitted by various disbursing outlets like Treasuries, Public Works/Forest Divisions and other Departmental Authorities as also the copies of sanctions endorsed to them by the various sanctioning authorities is called
(A) Field Audit
(B) Voucher Audit
(C) Central Audit
(D) None of the above

32. Government receipts such as Tax, Wealth Tax and Gift Tax are classified as 

(A) Direct Tax

(B) Indirect tax 

(C) Non-Tax revenue 

(D) None of these 


33. Which among the following is an indirect tax levied by State Governments?

(A) Income tax

(B) Wealth Tax 

(C) Agricultural Income Tax

(D) Stamp Duty


34 Which among the following is ordinarily NOT a function of Audit in regard to audit of receipts?

(A) Verify that the internal procedure adequately secures correct and regulating accounting of demands, collections and refunds
(B) Verify that no amounts due to Government are left outstanding on its book without sufficient reasons
(C) To set right errors by adopting such legal course as they may deem necessary
(D) Verify that the claims are pursued with diligence and are not abandoned or reduced except with adequate justification and with proper authority

35 Which among the following is an essential process involved in the payment of money on a Government account?
(A) The submission of a claim
(B) The disbursement of the money claimed
(C) The incorporated of the transaction in the accounts
(D) All the above

36. The power to dispose of property and stores pertaining to the Union Government is vested in whom?

(A) The President of India
(B) The Prime Minister of India
(C) The Union Finance Minister
(D) None of these

37. As per the guiding principles in audit of sanctions to expenditure what should an audit do if any one item of a scheme requires sanction of a higher authority?
(A) Audit should request the Government to cancel the scheme
(B) Audit should hold under objection any expenditure on that item until sanction to it is obtained
(C) Audit does not have powers to object the expenditure on the ground of absence of sanction of higher authority
(D) None of the above

38.The ultimate responsibility for keeping the expenditure within the Grant or Appropriation lies with…………..
(A) Audit
(B) The Legislature
(C) The Executive
(D) The Judiciary

39 The selection of sub-heads of a Grant or Appropriation which are fixed as units of the appropriation rests with
(A) Government
(B) Accountant General
(C) The President
(D) The Legislature

40. Under which section of the Comptroller and Auditor General's(Duties, Powers and Conditions of Service) Act, 1971 the Comptroller and Auditor General is responsible for audit of all transactions of the Union and of the States relating to Contingency Funds and Public Accounts
(A) Section 15(1)
(B) Section 15(2)
(C) Section 14
(D) Section 13(b)

41. Which among the following is NOT an item to be verified and satisfied by an Audit Officer in auditing the transactions connected with the Sinking Funds?
(A) Credits to these funds are in accordance with the undertaking given by Government
(B) Credits to these funds are in accordance with the conditions set forth in the prospectus of the loans
(C) The payments are eventually utilized for the purpose for which the funds themselves were created
(D) Interests have been accounted properly


42. Which among the following is NOT a matter to be satisfied in audit in the case of money received to be held as deposits with the Government and its repayments?
(A) There is individual sanction for each amount of deposit received
(B) The money can properly be credited to the Public Account of India or of a State by virtue of a statutory provision or of general or special orders of Government
(C) No item is credited as a revenue receipt or in reduction of ordinary expenditure of that Government
(D) There are proper vouchers in support of the amount repaid and that repayment do not exceed the amounts originally received and credited to Government

43.In the case of departmental undertakings the responsibility for the introduction of a commercial accounting system rests with whom?
(A) The Finance Ministry or Department of the Government of India or of the State
(B) Comptroller and Auditor General of India
(C) Controller of Accounts
(D) President of India .

44. The balancing of the cash book in a concern periodically with the bank or treasury pass book is done as part of
(A) Audit
(B) Internal check
(C) Stock verification
(D) All of these

45. Departmental Commercial Undertakings derive their finances from where?
(A) Internal accruals
(B) Borrowings
(C) Public deposits
(D) The budget allocations of the Administrative Ministries/Departments


46. In which of the following States the Divisional Accountants in PWD is NOT a subordinate of the Accountant General?
(A) Uttar Pradesh
(B) Madhya Pradesh
(C) Maharashtra
(D) Kerala

47. Which is the most important primary account record with PWD Sub-divisional Officer?.
(A) Muster roll
(B) Records of receipts and issues of stock, plant and road metal
(C) Cash book
(D) Measurement book

48. Contractor's ledger is maintained for what purpose?
(A) To keep the names and details of registered contractors
(B) To record the expenditure incurred in the division during a year
(C) Keep running account with each contractor, showing the amounts due by him for advances made to him, and due to him for work done by him
(D) To watch the details of materials issued to each work

49. In PWD a revised estimate must be  submitted when the sanctioned estimate is likely to exceed by more than..........................percent
(A) Ten
(B) Five
(C) Twenty
(D) Twenty five

50. Which among the following statements is NOT TRUE in regard to management of stores and stock?
(A) Management of stores and stock embraces acquisition of stores, their custody and distribution according to requirements and their disposal
(B) The goods received sheets are generally prepared in triplicate
(C) An issue rate is assigned to each new articles as it is brought on stock
(D) Disposal of unserviceable and obsolete stores is not a function relating to management of stores and stock