Examkin

Question

Difficulty: MediumRoles of Key Public Financial Officers

Under the legal framework governing Nigerian public sector accounting, the Auditor-General for the Federation is restricted from directly conducting the annual audit of government-owned statutory corporations, and instead provides a list of qualified external auditors for their appointment.

Answer: Answer

Answer

True. The Auditor-General for the Federation is legally restricted from performing direct annual audits of statutory corporations, supplying instead an approved list of qualified external auditors and monitoring guidelines.
The statement is true because the constitutional framework limits the Auditor-General to providing a vetted list of external auditors and oversight guidelines for statutory corporations rather than conducting direct audits.

Step-by-Step Solution

1
Analyze the statutory responsibilities of the Auditor-General for the Federation regarding government ministries versus statutory corporations.
The Auditor-General conducts direct audits for ministries and departments, but not for statutory parastatals.
Constitutional rules specify distinct oversight mechanisms for commercial and statutory public bodies.
2
Evaluate the mechanism used to audit public corporations under Nigerian financial regulations.
Statutory corporations select external auditors from an approved list issued by the Auditor-General.
This maintains external professional auditing for parastatals while ensuring the Auditor-General retains supervisory standards.

Key Concept

Audit Mandate and Limitations of the Auditor-General
Rate this question

Topics

Roles of Key Public Financial Officers

More questions from this topic