🇳🇬 PATRIOT ODUNARO BABATUNDE JIMOH
(CONTACT PATRIOT FOR SOLUTIONS ON 08038454008)
TOPIC 1: THE UNDERLYING CONCEPTS AND PRINCIPLES IN PUBLIC SECTOR
ACCOUNTING
1. Explain the concept of “Accrual Basis” and “Cash Basis” in public sector accounting. Highlight their key differences.
2. Discuss the importance of “Transparency” and “Accountability” as fundamental principles in public sector accounting.
3. Explain the concept of “Going Concern” and its relevance to public sector accounting.
4. Identify and explain any five key principles of public sector accounting.
5. Discuss the “Matching Concept” and its application in public sector accounting.
6. Explain the concept of “Materiality” in public sector accounting and its implications.
7. What is the “Consistency Concept,” and why is it important in public sector accounting?
8. Discuss the “Entity Concept” and how it applies to public sector organizations.
9. Explain the role of the “Prudence Concept” in the preparation of public sector financial statements.
10. Explain how the principles of public sector accounting contribute to good governance.
TOPIC 2: THE CONSTITUTIONAL, LEGISLATIVE AND REGULATORY
FRAMEWORKS OF PUBLIC SECTOR ACCOUNTING
11. Explain the term “Constitutional Framework” in public sector accounting and outline its major provisions relating to public financial management in Nigeria.
12. Discuss the “Legislative Framework” governing public sector accounting in Nigeria, highlighting at least five key legislations.
13. Define the “Regulatory Framework” of public sector accounting and identify five major regulatory institutions and their roles in Nigeria.
14. Differentiate between the Constitutional, Legislative, and Regulatory frameworks of public sector accounting.
15. Discuss the importance of the constitutional, legislative, and regulatory frameworks in ensuring effective public sector financial management in Nigeria.
16. Explain how the 1999 Constitution and the Fiscal Responsibility Act, 2007 complement each other in ensuring accountability in public sector accounting.
17. Identify and explain any five key features of the Nigerian public sector accounting framework.
TOPIC 3: THE PROCESS AND RESPONSIBILITIES FOR PLANNING AND
BUDGETING IN THE PUBLIC SECTOR;
18. Explain the meaning of planning and budgeting in the public sector and state their importance in public financial management.
19. Outline and explain the main stages in the public sector planning process.
20. Discuss in detail the stages involved in the budgetary process in the public sector.
21. Enumerate and explain the major responsibilities of key public sector institutions in the planning and budgeting process.
22. State and explain any five major objectives of budgeting in the public sector.
23. Explain the relationship between planning and budgeting in the public sector.
24. Identify and discuss at least five challenges facing effective planning and budgeting in the public sector.
25. Explain the significance of the Fiscal Responsibility Act (FRA) 2007 in the planning and budgeting process in Nigeria.
26. Discuss how monitoring and evaluation contribute to the success of public sector budgeting.
27. Explain five measures that can improve the effectiveness of planning and budgeting in the public sector.
TOPIC 4: MEDIUM TERM EXPENDITURE FRAMEWORK (MTEF), MEDIUM TERM SECTOR STRATEGIES (MTSS) AND PLANNING, PROGRAMMING AND BUDGETING SYSTEM (PPBS).
28.
a. Define the Medium Term Expenditure Framework (MTEF).
b. State and explain five (5) objectives of MTEF.
29. Explain the three key components of the Medium Term Expenditure Framework (MTEF) and their significance in public financial management.
30. Discuss five (5) major benefits of implementing the Medium Term Expenditure Framework (MTEF) in a developing country like Nigeria.
31. Define Medium Term Sector Strategies (MTSS) and explain its relationship with MTEF.
32. State and explain five (5) major components of the Medium Term Sector Strategy (MTSS).
33. Discuss five (5) benefits and five (5) challenges associated with the implementation of the Medium Term Sector Strategy (MTSS).
34. (a) Define the Planning, Programming and Budgeting System
(PPBS).
(b) Highlight five (5)
objectives of PPBS.
35. Describe the main stages of the Planning, Programming and Budgeting System (PPBS).
36. Explain five (5) major differences between MTEF, MTSS, and PPBS.
37. Discuss the importance of integrating MTEF, MTSS, and PPBS in the public financial management system of Nigeria.
TOPIC 5: IDENTIFY THE UNDERLYING CONCEPTS, PRINCIPLES AND
FRAMEWORK FOR REPORTING AND AUDITING IN PUBLIC SECTOR
ORGANISATIONS
38. Explain the term “Public Sector Financial Reporting” and outline its main objectives.
39. Discuss five (5) underlying concepts of public sector financial reporting.
40. Identify and explain five (5) principles guiding financial reporting in public sector organisations.
41. Describe the conceptual framework for financial reporting in the public sector and state its key components.
42. Explain the importance of applying accounting principles and frameworks in public sector financial reporting.
43. Enumerate and explain three (3) main types of audit conducted in public sector organisations.
44. Discuss the principles of auditing applicable to public sector organisations.
45. Explain the relationship between financial reporting and auditing in public sector organisations.
46. List and explain four (4) benefits of having a defined framework for public sector auditing.
47. Discuss how IPSAS and INTOSAI frameworks contribute to transparency and accountability in public sector financial management.
TOPIC 6: THE ROLES OF BODIES SET UP FOR ACCOUNTABILITY AND PROBITY
OF PUBLIC OFFICE HOLDERS;
48. Explain the terms “Accountability” and “Probity” as used in public sector governance.
49. List and explain five (5) major bodies established to promote accountability and probity among public office holders in Nigeria.
50. Discuss the major roles of the Economic and Financial Crimes Commission (EFCC) in promoting accountability in public service.
51. Explain the functions of the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
52. Identify and explain three (3) roles of the Code of Conduct Bureau (CCB).
53. Describe the functions of the Public Complaints Commission (PCC) in ensuring accountability of public office holders.
54. Explain the constitutional role of the Auditor-General in promoting transparency and accountability.
55. Discuss the major functions of the Bureau of Public Procurement (BPP) in ensuring probity in public contracting.
56. Highlight the key roles of the Fiscal Responsibility Commission (FRC) in promoting fiscal accountability in Nigeria.
57. Identify five (5) challenges faced by accountability and probity bodies in Nigeria and suggest possible solutions.
58. Discuss how the activities of the EFCC and ICPC complement each other in enhancing probity and accountability in public office.
59. Explain why the existence of accountability and probity bodies is important for democratic governance.
TOPIC 7: THE OBJECTIVE AND PREPARATION OF FINANCIAL STATEMENTS USING THE ACCRUAL BASIS METHOD;
60. (a)
Explain the objectives
of preparing financial statements using the accrual basis of
accounting.
(b)
Highlight five
(5) key features of the accrual basis of accounting.
61. Describe the steps involved in the preparation of financial statements using the accrual basis method.
62. The following information relates to the books of Bello Enterprises for the year ended 31st December 2024:
|
Particulars |
₦ |
|
Cash sales |
350,000 |
|
Credit sales |
450,000 |
|
Purchases (cash and credit) |
500,000 |
|
Wages paid |
80,000 |
|
Rent paid for 11 months |
110,000 |
|
Electricity bill owing |
10,000 |
|
Depreciation on equipment |
20,000 |
|
Insurance prepaid |
5,000 |
|
Salaries outstanding |
15,000 |
|
Inventory on 1/1/2024 |
70,000 |
|
Inventory on 31/12/2024 |
90,000 |
You are required to:
1. Prepare the Statement of Financial Performance (Income Statement) for the year ended 31st December 2024 using the accrual basis of accounting.
2. Show all workings clearly.
63. The following balances were extracted from the books of Delta Limited as at 31st December 2024:
|
Particulars |
₦ |
||
|
Rent received in advance |
8,000 |
||
|
Accrued income |
6,000 |
||
|
Accrued expenses |
10,000 |
||
|
Prepaid expenses |
4,000 |
||
|
Debtors |
45,000 |
||
|
Creditors |
35,000 |
||
|
Cash and bank balance |
20,000 |
||
|
Equipment at cost |
100,000 |
||
|
Accumulated depreciation |
40,000 |
||
|
Capital |
98,000 |
||
|
Purchases |
70,000 |
||
|
Sales |
150,000 |
||
|
Closing stock |
30,000 |
||
Required:
Prepare the Statement
of Financial Position as at 31st December 2024 using the
accrual basis of accounting.
64. Differentiate
between the accrual
basis and cash basis of accounting in terms of:
(a) Recognition of income and expenses
(b) Accuracy
(c) Compliance with standards
(d) Suitability
(e) Reporting focus
TOPIC 8: DIFFERENCES BETWEEN CASH AND ACCRUALS BASES OF PUBLIC
SECTOR ACCOUNTING
65. Explain the meaning of the term “basis of accounting” and distinguish between the cash basis and accrual basis of accounting in the public sector.
66. List and explain five (5) advantages and five (5) disadvantages of the cash basis of accounting in the public sector.
67. State five (5) key reasons why governments are shifting from cash basis to accrual basis of accounting.
68. Discuss the implications of using the cash basis as opposed to the accrual basis for decision-making in the public sector.
69. Identify and explain any five (5) limitations of accrual basis accounting in the public sector.
70. The following information relates to the Ministry of Health for the year ended December 31, 2024:
|
Particulars |
₦ |
|
Cash received from government allocation |
6,000,000 |
|
Cash paid for salaries |
3,000,000 |
|
Cash paid for materials |
1,000,000 |
|
Services rendered but not yet paid for |
500,000 |
|
Expenses incurred but unpaid (electricity bills) |
300,000 |
|
Materials purchased on credit |
200,000 |
|
Depreciation on equipment |
400,000 |
|
Accrued revenue not yet received |
100,000 |
Required:
(a) Prepare the financial result of the Ministry under:
i. Cash
Basis
ii. Accrual
Basis
(b) State the difference in the results and interpret briefly.
71. From the following data, compute revenue and expenditure under both cash and accrual bases for the Department of Agriculture:
|
Item Description |
Amount (₦) |
|
|
Cash received from services |
2,500,000 |
|
|
Cash expenses paid |
1,200,000 |
|
|
Revenue earned but not received |
300,000 |
|
|
Expenses incurred but unpaid |
200,000 |
|
|
Depreciation |
100,000 |
72. A government agency purchased equipment worth ₦2,000,000 on January 1, 2023, with an expected useful life of 5 years and no residual value. The following payments were made during the year:
|
Particulars |
₦ |
||
|
Cash received from grants |
5,000,000 |
||
|
Cash payments for expenses |
3,500,000 |
||
Required:
Compute the surplus for the year under:
i. Cash
Basis
ii. Accrual Basis
TOPIC 9: IDENTIFY AND APPLY INTERNATIONAL PUBLIC SECTOR
ACCOUNTING STANDARDS
73. Explain the meaning and objectives of International Public Sector Accounting Standards (IPSAS).
74. List and explain five major International Public Sector Accounting Standards (IPSAS) and their areas of application.
75. Describe the process involved in the adoption and implementation of IPSAS in a public sector organization.
76. Discuss the key benefits and challenges of implementing IPSAS in public sector organizations.
77. Explain the differences between Cash Basis IPSAS and Accrual Basis IPSAS.
78. Discuss the role of the International Public Sector Accounting Standards Board (IPSASB) in public sector financial reporting.
79. Using an example, explain how IPSAS 23 (Revenue from Non-Exchange Transactions) is applied in public sector accounting.
80. Explain how IPSAS enhances the quality of financial reporting in the public sector.
81. Describe how IPSAS relates to International Financial Reporting Standards (IFRS).
82. Discuss five key components of IPSAS-based financial statements.
TOPIC 10: AUDITING IN THE PUBLIC SECTOR COVERING - FINANCIAL AND
INTERNAL CONTROLS, VALUE FOR MONEY AUDIT, PERFORMANCE
AUDIT
83. Define auditing in the public sector and explain three (3) main objectives of public sector audit.
84. Differentiate between financial audit, performance audit, and value for money audit in the public sector.
85. Explain five (5) key components of internal control in the public sector.
86. State and explain the “Three Es” of a Value for Money (VFM) Audit.
87. List and explain four (4) types of financial controls applied in public sector accounting.
88. Explain the importance of internal audit in public sector organizations.
89. Discuss the stages involved in conducting a performance audit in a public sector organization.
90. Highlight five (5) benefits of Value for Money (VFM) Audit in public sector management.
91. Explain the relationship between financial audit and internal controls in public sector organizations.
92. Describe the role of the Auditor-General in the public sector auditing process.
93. A value for money audit was conducted on a
government road project.
The budget approved for the project was ₦150 million. Actual spending was ₦180
million.
The output target was 50 km of road, but only 40 km was completed.
Required:
Compute the following ratios and interpret the results:
a. Efficiency
Ratio
b. Effectiveness
Ratio
c. Economy
Ratio
94. During an audit review of a public hospital, the following data was obtained:
Number of patients planned to be treated: 10,000
Actual number treated: 8,500
Budgeted expenditure: ₦50 million
Actual expenditure: ₦45 million
Required:
Calculate and interpret:
a. Efficiency Ratio
b. Effectiveness Ratio
c. Economy Ratio
95. A government water project had an approved budget of ₦60 million for producing 1,200,000 litres of water monthly. Actual expenditure was ₦66 million, and production was 1,000,000 litres.
Required:
a. Compute the cost per litre under both planned and actual performance.
b. Compute the efficiency and economy ratios.
c. Interpret your results.
96. A government agency’s internal audit report revealed the following expenditure control figures for 2024:
|
Department |
Budget (₦’000) |
Actual Expenditure (₦’000) |
|
Education |
25,000 |
24,000 |
|
Health |
30,000 |
33,000 |
|
Agriculture |
20,000 |
18,500 |
|
Works |
25,000 |
25,500 |
Required:
a. Calculate the variance for each department.
b. Identify departments that complied with budgetary control.
97. Explain how the results of a Value for Money audit can be used to improve government budgeting and project management.
TOPIC 11: DIFFERENTIATE BETWEEN FINANCIAL REPORTING IN THE
PRIVATE SECTOR AND PUBLIC SECTOR (APPLICATION OF IFRS AND
IPSAS, IASB AND IPSAB)
98. a. Define financial reporting in both the private and
public sectors.
b. Highlight five key
differences between financial reporting in the private and public sectors.
99. Explain the roles of the IASB and IPSASB in global financial reporting.
100. Discuss five challenges faced by developing countries, including Nigeria, in implementing IPSAS.
101. Explain the major reasons for convergence between IFRS and IPSAS frameworks.
102. State and explain the components of financial statements under IFRS and IPSAS frameworks.
103. Below are selected financial data for Alpha Manufacturing Ltd (Private Sector) and Federal Ministry of Health (Public Sector) for the year ended 31st December 2024.
|
Particulars |
Alpha Manufacturing Ltd (₦) |
Federal Ministry of Health (₦) |
|
Revenue/Income |
50,000,000 |
80,000,000 |
|
Operating Expenses |
30,000,000 |
60,000,000 |
|
Depreciation |
5,000,000 |
10,000,000 |
|
Taxes |
4,000,000 |
- |
|
Government Grants |
- |
5,000,000 |
|
Transfers to other Ministries |
- |
2,000,000 |
Required:
(a) Prepare the Statement of Profit or
Loss for Alpha Manufacturing Ltd. under IFRS.
(b) Prepare the Statement of Financial
Performance for the Federal Ministry of Health under IPSAS.
(c) Comment briefly on the key difference between both reports.
104. The Ministry of Education received a total budget of ₦120 million in 2024 but spent ₦105 million. Calculate the budget variance and interpret it under IPSAS 24.
105. A private company reported the following balances:
Sales Revenue = ₦12,000,000
Cost of Sales = ₦8,000,000
Administrative Expenses = ₦1,000,000
Selling Expenses = ₦500,000
Tax Rate = 25%
Compute the Net Profit after Tax under IFRS format.
106. Critically discuss the convergence process between IFRS and IPSAS, highlighting benefits and challenges for Nigeria’s public financial management system.
TOPIC 12: PUBLIC PROCUREMENT PROCEDURE – PUBLIC PROCUREMENT ACT, 2007
107. Explain the objectives of the Public Procurement Act, 2007 in Nigeria.
108. Discuss the key functions of the Bureau of Public Procurement (BPP) as provided under the Public Procurement Act, 2007.
109. List and explain the stages involved in the public procurement process as stipulated under the Public Procurement Act, 2007.
110. Identify and explain the methods of procurement recognized under the Public Procurement Act, 2007.
111. Discuss the composition and powers of the National Council on Public Procurement (NCPP).
112. Explain the principles of transparency and accountability as embedded in the Public Procurement Act, 2007.
113. Discuss the role of accounting officers in ensuring compliance with the Public Procurement Act, 2007.
114. A Ministry of Works advertises a road construction project. The following bids were received (₦’000):
|
Bidder |
Bid Price (₦’000) |
Completion Period (Months) |
Past Performance Rating (%) |
|
A Ltd |
48,000 |
8 |
80% |
|
B Ltd |
47,500 |
10 |
70% |
|
C Ltd |
49,000 |
6 |
90% |
Using a weighted evaluation formula (Price 60%, Time 20%, Performance 20%), determine the most responsive and lowest evaluated bidder.
115.
A procurement officer needs to select the best supplier
using the value-for-money
principle.
Supplier X quoted ₦2,000,000 with a quality rating of 90%, while Supplier Y
quoted ₦1,800,000 with a quality rating of 70%.
Compute the cost
per quality point for each and recommend the best option.
TOPIC 13: ETHICAL ISSUES RELATING TO PUBLIC SECTOR ACCOUNTING
116. Define ethics and explain its importance in public sector accounting.
117. List and explain five fundamental ethical principles guiding public sector accountants.
118. Discuss five common ethical issues faced by accountants in the public sector.
119. Explain how ethical behavior promotes accountability and transparency in public financial management.
120. List and explain four institutional frameworks established to promote ethical conduct in Nigeria’s public sector.
121. State and explain three consequences of unethical behavior in public sector accounting.
122. Discuss the measures that can be taken to promote ethical conduct in public sector accounting.
123. Explain how conflict of interest can affect the integrity of financial reporting in the public sector.
124. Identify and explain any four ethical frameworks that guide public sector accounting in Nigeria.
125. Discuss the relationship between ethics and good governance in public sector accounting.
126. Explain the term ethics as it relates to public sector accounting and discuss five (5) fundamental ethical principles guiding public officers in financial reporting.
127. Identify and explain four (4) common ethical challenges faced by public sector accountants in Nigeria.
128. Discuss the role of professional accounting bodies in promoting ethical conduct among public sector accountants.
129. Explain how ethical lapses can affect the credibility of public sector financial reporting.
130.
A public sector accountant
discovered that ₦2,500,000 was paid twice to a contractor due to a clerical
error. His superior instructs him to hide the mistake and classify the excess
payment as “maintenance expenses.”
If the total maintenance expenses for the year before the adjustment were
₦7,000,000, calculate:
a) The revised total if the unethical adjustment is
made.
b) The correct total maintenance expense if the ethical approach is followed.
c) Briefly discuss the ethical implications of concealing the error.
131.
A procurement officer receives a ₦300,000 “gift” from a
contractor after awarding a ₦10,000,000 project.
Calculate the percentage of the bribe relative to the contract value
and explain its ethical consequences.
132.
An internal auditor notices that a ₦1,200,000 contract
was split into three contracts of ₦400,000 each to bypass approval limits.
(a) Identify the ethical issues involved.
(b) Suggest the proper ethical action.
133. Critically examine how ethical principles improve accountability and transparency in public sector financial management.
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