UNIVERSITI TEKNOLOGI MARA

FINAL ASSESSMENT

COURSE : PUBLIC FINANCIAL ADMINISTRATION

COURSE CODE : PAD370
ASSESSMENT : FEBRUARY 2021
TIME : 8 AM – 5 PM
DAY : 1 DAY

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two parts: Part A 1 question

Part B 2 questions

2. Answer ALL question from Part A and any one (1) question from Part B. Start each
answer on a new page.

3. Please check to make sure that this final assessment consists of :

i. the Question Paper

ii. the Answer Template

4. Submission of the answer should be submitted in PDF file and comprise the
following:
i) Cover Page (Include Name, Matric No, Group, Lecturer’s Name)
ii) Part A Typewritten - Font type Times New Roman, 12 pt., double spacing
iii) Part B Typewritten- Font type Times New Roman, 12 pt., double spacing

4. Answer ALL questions in English.

 UNIVERSITI TEKNOLOGI MARA
FINAL ASSESSMENT

COURSE : PUBLIC FINANCIAL ADMINISTRATION

COURSE CODE : PAD370
ASSESSMENT : FEBRUARY 2021
TIME : 8 AM – 5 PM
DAY : 1 DAY

NAME : NOR AYUNI BT MOHD SUHAIMI

MATRIC NO : 2018802424

NO GROUP : D1AM1105B

LECTURER’S NAME : MISS NORHAYATI YAACOB

NO MARKS EXAMINER
PART A Q1 1

2
PART B Q1 1

2
Q2 1

ANSWER PART A
QUESTIONS 1

a) Discuss on the FIVE (5) functions of National Audit Department.(25 marks)

The first function of National Audit Department is aims to achieve high level

of public accountability. Here we can see that responsibility and accountability

are something different. This means an example of the responsibility we will

do a given task but we do not correct the mistakes we make and give the task

to others it is very different from the accountability that we do our job well and

correct the mistakes that occur in the task before giving the task to others.

The National Audit Department hopes or has ambitions so that matters related

to the audit can be done properly such as accountability and not just

responsibility. Beside that, based on the statement that has given I can say

that the National Audit Department has check on the accountability in several

government companies like TH Hotel & Residence Sdn Bhd, Amanah Raya

Bhd, Small Medium Bhd and more other company.

The second function of National Audit Department is cover the function that

include verifying accounting records. This is the function of the National Audit

Department to ensure that everything that happens in the public sector

organization is in accordance with what is set. This is because even though

an organization has an Internal Audit Unit, they will probably have a slight bias.

This will happen because they are also one of those organizations. Unlike the

National Audit Department because they have nothing to do with the

organization so they will not be biased in examining every accounting record in

the organization. For example, the National Audit Department can also review

the activities carried out in the organization to match those reported in the

accounting records. This is done to ensure that the information available is

true. Furthermore, based on the statement given, I feel that what the National

Audit Department is doing is a good initiative because it creates a new

recommendation.

The third function of National Audit Department is ensuring the compliance

with proper and relevant guidelines and principles. This is because in order to

get an accurate report, the National Audit Department must follow every

guideline and principle that has been set so that the information contained in

the report is something relevant and does not cause doubt among third parties

or we call it citizens. This is because every expenditure in a public

organization is from the people's money that is charged through taxes that the

people have to pay. Therefore, every income as well as expenses must be

recorded correctly, thoroughly and accurately. This is to not doubt the people

and also to prevent the occurrence of breach of trust or fraud in an

organization. For example, the National Audit Department can review the

assets of the organization and interest are safeguard against loss and abuse.

Based on the statement given, Nik Azman also said that the used of 3P1K

approach that is to identify elements of public fund wastage, misappropriation

and leakage.

The fourth function of National Audit Department is determining whether the

statement from the accounts have been prepared fairly. Determine whether the

statement from the account has been prepared fairly. This needs to be done

so that no issues will arise and cause major problems. If accounting records

or statements that are stated are not done fairly and trust it may cause a lot of

problems. For example, there is the issue of overspending or underspending.

When these things happen it will cause dissatisfaction among the people. This
is because if there is an overspending, the National Audit Department must

submit where the excess has existed as well as if there is an underspending,

the National Audit Department must submit a statement or reason why the

underspending occurred. Next, to give a fair statement the National Audit

Department must follow the policies, laws, regulations and directives that have

been set. This is so that the people get justice because the country's income

is from the people's money that pays taxes to the country.

The last function of National Audit Department is have direct responsibility

to YDPA. This is because, National Audit Department or Auditor General is

under the responsibility of Parliament or YDPA. This also because the

accounting records must present to the citizen which is under the parliament

supervision. That is why the National Audit Department has to report all the

things about the accounting records to the YDPA.

b) Differentiate on the THREE (3) aspects of audit done by NAD. (15 marks)

The first aspect of audit done by National Audit Department (NAD) is

financial. Financial is one of the types of audit. It also know as attestation audit

which is determine true and fair view of annual financial statements and to

ensure the extent of compliance with all accounting and auditing standards,

rules and regulations. It also concern on maintained properly and up to date

about t accounting records. Besides that, the nature of assertions for financial

is entity’s financial report data. The establishment criteria is an identified

financial reporting framework. Then, the nature of auditor's report is on the

opinion of the fairness or 'truth and fairness' of financial information. This also

has been stated in the statement about the analysis of the company’s financial

position.

The second aspect of audit done by National Audit Department (NAD) is

compliance. This is also one of the types of audit. Compliance audit is about

the examination pertaining to the inspection and evaluation of the activities of

ministries, department or other public sector organizations. It also concern on

the function of determining and examining evidence whether a financial and

operating activity conforms to specified conditions, rules and regulations.

Then, we go for the nature of assertions for compliance is implicit claim that

data adhere to relevant policies, law and regulations. Beside that, the

establishment criteria for compliance audit is management’s policies, law,

regulations or other third-party requirements. Beside that, the nature of

auditor’s is summary of findings or assurances regarding degrees of

compliance. This explain is also based on the statement given which the

corporate governance.
 The last aspect of audit done by National Audit Department (NAD) is

performance audit. This is also one of the types audit. Performance audit is an

assessment that extent to which an activity, programme or public institutions

operates efficiently and effectively with due regards to economy. Moreover,

performance audit also supports the fundamental basis of government

spending of the three Es which is economy, efficient and effectiveness.

Besides that, it also concern about the specified financial operation and full

range of government activities, including both organisational and

administrative system, also add the value towards promoting better

management practice. This also we can see in the statement given which is

activity of management. Then, we can go to the nature of assertions for the

performance audit is performance or operational data. The establishment

criteria for performance audit is objective set, for example by management or

enabling legislation. The last one is nature of auditor’s report is economy,

efficiency and effectiveness observed and recommendations for improvement.

This is all about the performance audit.

ANSWER PART B

QUESTIONS 1

a) Discuss the importance of accountability in public sector administration.

(15marks)

The first importance of accountability in public sector administration is

create an effective control to ensure management of public moneys is in

accordance with applicable law and regulations. This is because we need

to take care of public money so that it is used effectively and not wasted

and also in accordance with the laws that have been set. So, for example,

we have Treasury Circulars, income tax act, state money control act and

also Gst act. This is one way to know effective control measures. Here we

can see that this is related to the statement given. This is how we know that

the taxpayers money going to where or how they have managed. We need

to manage public money in the right way to avoid the emergence of issues

that should not be. This should also be emphasized because it involves

money from the taxpayer. They may wonder or want to know what the

government has done with the money. Therefore, those in charge should

confirm the correct reason or statement for the question.

The second importance of accountability in public sector administration

is set up an effective system for public officials to execute the

responsibilities entrusted to them. This should also be considered important

by the public sector administration because if there is no effective system

to carry out the responsibility it can also be one of the causes of the failure

of a task or responsibility to be carried out. For example, when there is no

proper system for those responsible for carrying out their duties it will cause
leakage or misappropriation of public money. In addition, the taxpayer will

also doubt any accounting reports or records that have been presented to

them. This is related to the statement that has been given. This is because

there is no solid system and can provide evidence of what has been

presented. Then there will be dissatisfaction among the taxpayer.

Furthermore, taxpayers will also doubt or lose faith in the public

administration sector.

The last importance of accountability in public sector administration is

utilise public moneys in accordance with authorised purposed and relevant

activities are carried out in an orderly and efficient manner without and

wastage. This is an importance that needs to be emphasized because the

government needs to do proper activities with the public money. For

example, doing programs or activities that have a good effect on the people

such as doing caring programs for the B40 group or the affected group.

For example, with the current situation, many people have lost their jobs

due to the Covid-19 pandemic. Here we can see from the statement given.

Apart from that, the government also makes a decision where the people in

need are allowed to withdraw their EPF money to make capital for business

or the like. But, to withdraw the money, the government still sets some

conditions so that there is no waste or misuse of the money that have been

withdrawn. This is because, it is common knowledge that the EPF money is

a savings for our old age.

b) Suggest ways to achieve effective accountability in the public sector.
(15 marks)

The first ways to achieve effective accountability in the public sector is clear

roles and responsibilities. This is because For example, in the organization has

five people, each of these five people need to know about their responsibilities

and duties. This is so that there is no contradiction, no redundancy, no

duplication in doing their job. This is also very important to differentiate each

job scope for each employee. So that there is no dissatisfaction when there

are employees who have to do tasks that are not within the scope of his work.

Also the roles and responsibilities of the parties. This is also related to the

statement given.

The second ways to achieve effective accountability in the public sector is

clear performance expectation. This is which means you have prediction about

the output in clear way. For example, in the job of decision making a group has

agreed to make that decision. This is because they already have a clear way

of being effective. If anyone does not agree then they need to discuss and find

a way by using good communication so that no dissatisfaction occurs. This is

because when working in a loyal group the decisions are made it will be a

shared responsibility for that group. There is the term that two head is better

then one head. Here we can see that the clear performance can be achieve if

we have the togetherness. There are plenty of tools can be used to create the

effective accountability among the public sector. Also The objective being

pursued, the accomplishments expected, and the operating constraints to be

respected should be explicit, understood and agreed upon. Here we can see that it

also related to the statement given.

The last ways to achieve effective accountability in the public sector is reasonable

review and adjustment. This is because fair and informed review and feedback on

performance should be carried out, achievements and difficulties are recognised,

appropriate corrections made and appropriate consequences for individual carried

out. For example, if we do something we may make a mistake in doing that task or

responsibility. If there is a mistake there will definitely be a reprimand, then take the

reprimand as feedback to improve the task, program or activity that will be held. From

that feedback we will know where the lacking is in the program. After receiving the

review or feedback, we must act by making adjustments in the program or activity.

This is also from the statement given.