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Printable Questions & Answers.

NEW QUESTION 30
A government department is conducting a value for money audit on a school.
The school's pupils sit leaving exams. Classify each of the audit tests as either economy and efficiency or effectiveness.

**Answer: **
Explanation:

NEW QUESTION 31
Company M has lost 25% of its revenue in the last three months due to bad debts. One of the receivables written off was from a long standing customer and the other three were from new customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.
Which of the following internal controls should be put in place to try and prevent further bad debts?

A. A credit check should be carried out on each new customer.
B. Credit limits should be set for all customers. However, if the credit limit will cost a sale then sales staff can override this limit.
C. Two sales staff must authorise new customers and sign a form stating that they have done so.
D. An aged analysis of customer balances must be reviewed every month.
E. As soon as a customer payment is overdue they should not be allowed to purchase more until their balance has been reduced.

Answer: A,D,E

NEW QUESTION 32
A's directors do not believe that they always get value for money from their investment in capital projects.
Over the past decade the company has invested in 55 projects that have cost more than $1m. They are considering introducing a system of post completion audit to see if this will help them to understand any problems they have had with projects in the past. They hope to use the results of the post completion audits to significantly improve the results of their capital investments State whether you agree or disagree with the points raised by A's directors.

**Answer: **
Explanation:

NEW QUESTION 33
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