“200”, Aptitude Test
Questions and Answers for Mkaguzi Daraja la II (Ukaguzi wa Ufanisi- Fani ya Uchumi)
at – the National Audit Office (NAOT).
ABSTRACT
This material brings together 200
carefully prepared multiple-choice questions and answers to help candidates
preparing for the Mkaguzi Daraja la II (Ukaguzi wa Ufanisi – Fani ya Uchumi)
position at the National Audit Office of Tanzania (NAOT). The questions
are designed to reflect the Public Service Recruitment Secretariat (PSRS)
aptitude test style and focus on how economic thinking is applied in real
public sector work in Tanzania. They cover key areas such as value for money,
economy, efficiency, effectiveness, public finance, program evaluation, fiscal
sustainability, incentives, risk, and governance, using practical scenarios
drawn from common government and development programs. This resource is
intended to help graduates in Economics, Agricultural Economics, Statistics,
and related fields build confidence, sharpen their analytical skills, and
approach the NAOT performance audit aptitude test with better understanding and
readiness.
Prepared by: Economists.
Compiled by Johnson Yesaya Mgelwa.
A lawyer stationed in Dar-es-salaam.
0628729934.
Date: November 19, 2025
Dear applicants,
This collection of questions and answers
has been prepared to help all of you to understand the key areas tested during
the interview. The goal is to provide a useful, and practical study guide so you
can all perform confidently and fairly in the selection process. I wish you the
best of luck, and may this resource support you in achieving success!
Warm regards,
Johnson Yesaya Mgelwa
For Personal Use by Applicants Preparing
for Mkaguzi Daraja la II (Ukaguzi wa Ufanisi- Fani ya Uchumi) at the National
Audit Office (NAOT).
ALL
QUESTIONS ARE COMPILED TOGETHER.
QUESTION 1
During the planning stage of a
performance audit, an auditor identifies that a government agricultural subsidy
program has unclear output indicators. What is the MOST appropriate initial
action from a performance audit perspective?
A. Recommend suspension of the program
until indicators are clarified
B. Develop appropriate performance indicators aligned with program objectives
C. Replace output indicators with financial expenditure measures
D. Proceed with the audit using available indicators
ANSWER: B
RATIONALE:
Performance audits focus on economy, efficiency, and effectiveness. When output
indicators are unclear, the most appropriate initial action is to develop
indicators that align with program objectives so that performance can be
meaningfully assessed. Suspending the program is outside the auditor’s mandate,
relying solely on financial measures undermines effectiveness analysis, and
proceeding without proper indicators weakens audit credibility.
QUESTION 2
Which of the following BEST distinguishes
a performance audit from a financial audit in the public sector?
A. Performance audits assess whether
resources are used economically and effectively
B. Performance audits focus on compliance with accounting standards
C. Financial audits evaluate policy relevance and social impact
D. Financial audits examine efficiency of service delivery
ANSWER: A
RATIONALE:
Performance audits are concerned with economy, efficiency, and effectiveness in
the use of public resources. Financial audits primarily assess the fairness and
accuracy of financial statements and compliance with accounting standards.
Policy relevance and service efficiency fall under performance auditing, not
financial auditing.
QUESTION 3
An auditor is reviewing a road
construction project that exceeded its budget but was completed on time and
meets quality standards. Which performance audit principle is MOST directly
affected?
A. Effectiveness
B. Compliance
C. Economy
D. Sustainability
ANSWER: C
RATIONALE:
Economy focuses on minimizing the cost of resources while maintaining
appropriate quality. Exceeding the budget indicates a potential failure in
achieving economy, even if the project was effective and timely. Compliance and
sustainability are secondary considerations in this specific scenario.
QUESTION 4
In performance auditing, baseline data is
MOST important because it:
A. Ensures legal compliance with
procurement laws
B. Allows comparison of performance before and after intervention
C. Replaces the need for audit criteria
D. Guarantees achievement of audit recommendations
ANSWER: B
RATIONALE:
Baseline data provides a reference point against which changes in performance
can be measured. Without it, auditors cannot reliably assess improvements or
declines resulting from a program. It does not replace audit criteria, ensure
compliance, or guarantee implementation of recommendations.
QUESTION 5
Which of the following indicators BEST
measures efficiency in a public hospital performance audit?
A. Number of patients treated per medical
staff member
B. Total annual budget allocated to the hospital
C. Compliance with health sector regulations
D. Patient satisfaction with service quality
ANSWER: A
RATIONALE:
Efficiency examines the relationship between inputs and outputs. The number of
patients treated per staff member directly links resources used to services
delivered. Budget allocation relates to economy, compliance relates to
legality, and patient satisfaction reflects effectiveness rather than
efficiency.
QUESTION 6
Which situation BEST indicates allocative
inefficiency in public spending?
A. Projects completed later than planned
B. Resources concentrated on low-impact programs despite higher-priority needs
C. Slight cost overruns in implementation
D. Delays in procurement approvals
ANSWER: B
RATIONALE:
Allocative inefficiency occurs when resources are not directed to their
highest-value uses. Funding low-impact programs while more critical needs
remain underfunded shows poor allocation, regardless of implementation quality
or timing.
QUESTION 7
Which of the following is the MOST
appropriate source of audit evidence when assessing effectiveness of a youth
employment program?
A. Approved program budget
B. Payroll records of implementing agency
C. Procurement contracts for training materials
D. Employment outcomes of program beneficiaries
ANSWER: D
RATIONALE:
Effectiveness focuses on the extent to which intended outcomes are achieved.
Employment outcomes directly reflect whether the program met its objective of
increasing employment among youth, whereas budgets, payrolls, and procurement
records relate to inputs and processes.
QUESTION 8
An auditor intends to assess whether a
government program is achieving value for money. Which combination of criteria
should be applied?
A. Compliance, legality, transparency
B. Economy, efficiency, effectiveness
C. Accountability, sustainability, equity
D. Financial accuracy, reporting timeliness, disclosure
ANSWER: B
RATIONALE:
Value for money in public sector auditing is assessed through the three core
principles: economy, efficiency, and effectiveness. These collectively evaluate
cost, process, and outcomes, unlike compliance or reporting-focused criteria.
QUESTION 9
In performance audit planning, audit
criteria should primarily be:
A. Based on auditor professional judgment
only
B. Limited to financial management regulations
C. Selected after completion of fieldwork
D. Derived from laws, policies, standards, and best practices
ANSWER: D
RATIONALE:
Audit criteria must be objective and defensible, drawing from laws, policies,
standards, and recognized best practices. Sole reliance on auditor judgment
reduces objectivity, and criteria must be set before fieldwork to guide
evidence collection.
QUESTION 10
Which of the following BEST describes the
role of feasibility studies in performance auditing?
A. They determine audit opinions on
financial statements
B. They assess whether planned interventions are viable and justified
C. They replace post-implementation evaluations
D. They focus solely on procurement compliance
ANSWER: B
RATIONALE:
Feasibility studies analyze whether proposed interventions are technically,
economically, and financially viable. In performance auditing, they provide
benchmarks against which actual implementation and outcomes can be assessed.
QUESTION 11
An auditor notices that a development
project lacks clearly defined outcomes but has detailed activity plans. This
situation MOST likely affects the assessment of:
A. Effectiveness
B. Economy
C. Compliance
D. Transparency
ANSWER: A
RATIONALE:
Without clearly defined outcomes, it is difficult to assess whether the project
achieved its intended results, which directly affects effectiveness evaluation.
Activity plans alone do not demonstrate impact.
QUESTION 12
Which of the following data analysis
techniques is MOST appropriate for identifying trends in program performance
over time?
A. Cross-sectional analysis
B. Ratio analysis
C. Time-series analysis
D. Benchmark analysis
ANSWER: C
RATIONALE:
Time-series analysis examines data points collected over time, making it ideal
for identifying trends and changes in performance. Cross-sectional and
benchmark analyses compare across entities or standards rather than over time.
QUESTION 13
In a performance audit of a fertilizer
subsidy program, leakage refers to:
A. Loss of fertilizer during
transportation
B. Benefits reaching unintended beneficiaries
C. Delays in fertilizer distribution
D. Inadequate storage facilities
ANSWER: B
RATIONALE:
Leakage occurs when program benefits are diverted to individuals or groups
other than the intended beneficiaries. This directly undermines effectiveness
and equity of public spending.
QUESTION 14
Which of the following MOST enhances the
reliability of audit findings?
A. Increasing the number of audit
recommendations
B. Relying on management explanations
C. Limiting interviews to senior management
D. Using evidence from multiple independent sources
ANSWER: D
RATIONALE:
Triangulation—using evidence from multiple independent sources—strengthens
reliability and credibility of audit findings. Overreliance on management
explanations or limiting evidence sources weakens audit conclusions.
QUESTION 15
When assessing efficiency, which ratio
would be MOST useful for an education sector audit?
A. Total education budget as a percentage
of GDP
B. Number of students per teacher
C. Literacy rate among adults
D. Compliance with curriculum standards
ANSWER: B
RATIONALE:
The student-to-teacher ratio directly links inputs (teachers) to outputs
(students taught), making it a classic efficiency indicator. Literacy rates
relate to effectiveness, while budget ratios relate to economy.
QUESTION 16
Which factor MOST limits the usefulness
of performance indicators in public sector audits?
A. Indicators not aligned with program
objectives
B. Indicators expressed in quantitative terms
C. Indicators collected periodically
D. Indicators linked to outcomes
ANSWER: A
RATIONALE:
If indicators are not aligned with program objectives, they fail to measure
what the program intends to achieve, rendering them ineffective for performance
assessment regardless of how frequently or quantitatively they are measured.
QUESTION 17
A performance audit recommendation should
primarily be:
A. Punitive to responsible officers
B. General and non-specific
C. Practical and aimed at improving performance
D. Focused on increasing budget allocations
ANSWER: C
RATIONALE:
Performance audit recommendations are forward-looking and aim to improve
economy, efficiency, and effectiveness. They should be practical, actionable,
and constructive rather than punitive or vague.
QUESTION 18
Which of the following BEST reflects
effectiveness in a poverty reduction program?
A. Amount of funds disbursed annually
B. Number of staff employed in the program
C. Reduction in poverty levels among targeted households
D. Timeliness of financial reporting
ANSWER: C
RATIONALE:
Effectiveness measures the extent to which objectives are achieved. A reduction
in poverty levels among targeted households directly reflects whether the
program achieved its intended outcome.
QUESTION 19
In performance auditing, benchmarking
involves:
A. Comparing performance against best
practices or similar programs
B. Comparing program costs to legal thresholds
C. Comparing actual expenditure with budgeted amounts
D. Comparing audit findings with prior audit opinions
ANSWER: A
RATIONALE:
Benchmarking assesses performance by comparing it with recognized standards,
best practices, or similar programs. This helps identify performance gaps and
improvement opportunities.
QUESTION 20
Which of the following is MOST relevant
when assessing sustainability of a government development project?
A. Initial capital cost
B. Long-term availability of funding and capacity
C. Compliance with procurement laws
D. Speed of project implementation
ANSWER: B
RATIONALE:
Sustainability focuses on whether project benefits can be maintained over time,
which depends on continued funding, institutional capacity, and operational
viability rather than initial costs or speed.
QUESTION 21
An auditor finds that a program
consistently meets output targets but fails to address the underlying problem
it was designed to solve. This situation indicates weakness in:
A. Economy
B. Efficiency
C. Effectiveness
D. Compliance
ANSWER: C
RATIONALE:
Meeting outputs without achieving desired outcomes suggests that the program is
not effective. Effectiveness focuses on solving the underlying problem, not
merely delivering activities or outputs.
QUESTION 22
Which of the following MOST improves
accountability in public sector programs?
A. Clearly defining roles,
responsibilities, and performance expectations
B. Increasing administrative procedures
C. Expanding program scope
D. Centralizing decision-making authority
ANSWER: A
RATIONALE:
Clear roles, responsibilities, and performance expectations enable tracking of
responsibility and results, which strengthens accountability. Excessive
procedures or centralization may reduce efficiency without improving
accountability.
QUESTION 23
During audit fieldwork, which method is
MOST appropriate for verifying reported service delivery outputs?
A. Reviewing policy documents
B. Conducting physical inspections and beneficiary verification
C. Analyzing budget approvals
D. Reviewing internal memos
ANSWER: B
RATIONALE:
Physical inspections and beneficiary verification provide direct, independent
confirmation of reported outputs, making them strong forms of audit evidence
compared to internal documents.
QUESTION 24
Which of the following BEST explains why
performance audits often use qualitative data?
A. Qualitative data replaces quantitative
indicators
B. Qualitative data ensures legal compliance
C. Qualitative data is easier to collect
D. Qualitative data helps explain causes behind performance results
ANSWER: D
RATIONALE:
Qualitative data provides context and explanations for why certain performance
results occurred, complementing quantitative indicators. It does not replace
quantitative data nor ensure compliance.
QUESTION 25
Which evidence MOST supports assessment
of effectiveness in a youth employment program?
A. Budget execution reports
B. Number of training sessions conducted
C. Employment rate of trained beneficiaries
D. Compliance with training guidelines
ANSWER: C
RATIONALE:
Effectiveness focuses on whether intended outcomes are achieved. Employment
rates among beneficiaries directly reflect whether the program succeeded in
improving employment, unlike inputs or procedural compliance.
QUESTION 26
During a performance audit of a public
irrigation project, an auditor observes that water distribution infrastructure
exists but utilization rates remain low due to weak farmer participation. Which
audit question is MOST relevant?
A. Were project resources procured at the
lowest possible cost?
B. Were irrigation facilities constructed according to specifications?
C. Did the project design adequately address beneficiary incentives and
behavior?
D. Were funds disbursed in accordance with approved budgets?
ANSWER: C
RATIONALE:
Low utilization despite available infrastructure indicates a design weakness
related to beneficiary behavior and incentives. Performance auditing evaluates
whether program design supports achievement of intended outcomes. Economy,
compliance, and construction quality alone cannot explain underutilization if
beneficiaries are unwilling or unable to participate.
QUESTION 27
Which of the following BEST explains why
cost–benefit analysis is relevant in performance auditing?
A. It determines whether expenditures
comply with budget ceilings
B. It compares alternative uses of resources to maximize net social benefits
C. It replaces financial audits in public institutions
D. It ensures projects are implemented within planned timelines
ANSWER: B
RATIONALE:
Cost–benefit analysis evaluates whether the benefits of an intervention
outweigh its costs compared to alternatives, which aligns with performance
audit objectives of economy and effectiveness. Compliance and timeliness alone
do not assess value for money.
QUESTION 28
Which factor MOST limits accurate
measurement of outcomes in long-term social programs?
A. Availability of staff
B. Weak procurement systems
C. Long time lag before results are observable
D. Annual budget constraints
ANSWER: C
RATIONALE:
Many social outcomes, such as poverty reduction or education impacts, take
years to materialize. Long time lags make it difficult to directly observe and
attribute results within a short audit period.
QUESTION 29
Which of the following audit criteria
would be MOST appropriate when assessing whether a subsidy program distorts
market prices?
A. Economic efficiency
B. Financial accuracy
C. Legal compliance
D. Reporting transparency
ANSWER: A
RATIONALE:
Market distortions relate directly to economic efficiency, as inefficient
subsidies can misallocate resources and alter price signals. Financial accuracy
and compliance do not capture broader economic impacts.
QUESTION 30
In the context of performance auditing,
opportunity cost refers to:
A. The financial loss due to
misappropriation
B. The cost of delayed project implementation
C. The value of the best alternative foregone
D. The difference between budgeted and actual expenditure
ANSWER: C
RATIONALE:
Opportunity cost represents the benefits that could have been gained from the
next best alternative use of resources. Performance auditors consider this
concept when assessing whether public resources are allocated optimally.
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