1.

What is the main objective of internal control in government

departments?
A) To increase revenue collection
B) To prevent irregularities, waste, and loss
C) To reduce working hours of employees
D) To enhance public relations
Answer: B) To prevent irregularities, waste, and loss

2. Internal control measures should be:

A) Strict and inflexible
B) Relaxed for senior officers
C) Adequate, reasonable, and effective
D) Focused only on financial matters
Answer: C) Adequate, reasonable, and effective

3. Which of the following is NOT an objective of internal control?

A) Accuracy of accounts
B) Proper custody of assets
C) Authorization of transactions
D) Increase in project deadlines
Answer: D) Increase in project deadlines

4. In an internal control system, division of duties helps to:

A) Create confusion among employees
B) Prevent collusion and errors
C) Reduce paperwork
D) Speed up audits
Answer: B) Prevent collusion and errors

5. A key feature of internal check is:

A) Duties are assigned to a single person
B) Regular rotation of staff duties
C) Duties are fixed permanently
D) No verification of work done
Answer: B) Regular rotation of staff duties

6. Which activity is NOT a function of internal control?

A) Periodic stock verification
B) Verification of work measurement
C) Sanction of public works
D) Issue of caution memos
Answer: C) Sanction of public works
7. Surprise checks and physical verification are conducted to:
A) Ensure correctness and detect fraud
B) Reward employees
C) Increase documentation
D) Replace regular checks
Answer: A) Ensure correctness and detect fraud

8. Which principle ensures that no single person handles an entire

transaction?
A) Authorization control
B) Segregation of duties
C) Independent verification
D) Physical control
Answer: B) Segregation of duties

9. Custody of stores should be entrusted to:

A) A committee of officers
B) A responsible individual
C) Any junior staff
D) Contractual employees
Answer: B) A responsible individual

10. An important element of control over work execution is:

A) Assigning multiple responsibilities to one person
B) Inspection and measurement by a qualified subordinate
C) Allowing contractors to measure their own work
D) Issuing work orders without verification
Answer: B) Inspection and measurement by a qualified subordinate

11. Measurement books (MBs) are used for:

A) Recording daily attendance
B) Recording detailed measurements of works and supplies
C) Issuing material to contractors
D) Issuing salary payments
Answer: B) Recording detailed measurements of works and supplies

12. How often should measurement books (MBs) be reviewed by

divisional officers?
A) Monthly
B) Once in six months
C) Annually
D) Randomly without time limit
Answer: A) Monthly
13. In terms of internal control, ‘Authorization’ ensures that:
A) Only approved persons sanction transactions
B) Everyone can sanction any transaction
C) Unauthorized persons maintain records
D) Stock is kept open to all staff
Answer: A) Only approved persons sanction transactions

14. The final responsibility for proper maintenance of cash books rests
with:
A) Cashier
B) Divisional Accountant
C) Divisional Officer
D) Treasury Officer
Answer: C) Divisional Officer

15. The daily cash balance must be verified:

A) Weekly
B) Every fortnight
C) Daily
D) At the end of the financial year
Answer: C) Daily

16. Why should contractors not be allowed to handle Measurement

Books (MBs)?
A) To maintain secrecy
B) To prevent loss of MBs
C) To avoid manipulation or fraud
D) To save cost
Answer: C) To avoid manipulation or fraud

17. Physical verification of stores must be conducted:

A) Every month
B) Half-yearly
C) Annually
D) Once every two years
Answer: C) Annually

18. How should discrepancies in store verification be treated?

A) Ignored if minor
B) Reported and investigated immediately
C) Deferred to next verification
D) Only informed to the storekeeper
Answer: B) Reported and investigated immediately
19. Duties of storekeeping must be:
A) Divided among several storekeepers
B) Handled only by casual labor
C) Assigned to a responsible individual
D) Given to contractors
Answer: C) Assigned to a responsible individual

20. Before closing an account, verification of balances must be done by:

A) Office clerk
B) Executive Engineer
C) Divisional Accountant
D) Storekeeper
Answer: B) Executive Engineer

21. The primary aim of stock verification is to:

A) Find missing items for replacement
B) Verify that physical stocks agree with book balances
C) Reward the storekeeper
D) Cancel old stocks
Answer: B) Verify that physical stocks agree with book balances

22. Verification of stock should be done by:

A) A casual worker
B) An independent officer, not directly responsible for custody
C) The same storekeeper who maintains the stock
D) Contractor’s agent
Answer: B) An independent officer, not directly responsible for custody

23. The work-in-progress (WIP) register helps to:

A) Track completed works only
B) Monitor works during execution
C) Maintain attendance records
D) Record salary advances
Answer: B) Monitor works during execution

24. In the case of work-in-progress accounts, entries should be verified:

A) Only at the start of the work
B) After every small milestone
C) Periodically during progress and before closing the accounts
D) At the end of the year
Answer: C) Periodically during progress and before closing the accounts
25. An audit of divisional accounts ensures:
A) Increase in fund allocations
B) Correctness of records and internal control compliance
C) Reduction in office staff
D) Award of contracts without tenders
Answer: B) Correctness of records and internal control compliance

26. The key to effective internal control is:

A) Blind trust on subordinates
B) Regular supervision and review by superior officers
C) Delegation of duties without checks
D) Completely computerized records
Answer: B) Regular supervision and review by superior officers

27. A good internal control system ensures that mistakes are:

A) Hidden from auditors
B) Detected and corrected early
C) Ignored if minor
D) Left for future verification
Answer: B) Detected and corrected early

28. Before final payment to contractors, measurements must be:

A) Taken by any available staff
B) Properly recorded and checked
C) Verbal without record
D) Deferred until audit
Answer: B) Properly recorded and checked

29. Surprise inspections are essential to:

A) Punish staff randomly
B) Maintain discipline and ensure efficiency
C) Increase paperwork
D) Please the audit team
Answer: B) Maintain discipline and ensure efficiency

30. Proper maintenance of accounts, registers, and records leads to:

A) More opportunities for manipulation
B) Faster loss detection and better control
C) Delays in project completion
D) More work for clerical staff
Answer: B) Faster loss detection and better control
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