“420”, Oral Interview Questions and Answers for Accounts Officer II – MDA & LGA.
ABSTRACT
This set of questions is designed to help
candidates prepare thoroughly for auditing, accounting, and public finance
interviews in MDAs and LGAs. It brings together practical scenarios, technical
concepts, and oral-style questions that reflect what candidates are likely to
face in real assessments. The questions cover key areas such as internal
controls, audit planning, public financial management, procurement, ethics,
reporting, and internationally recognized auditing principles. The aim is not
just memorization, but deeper understanding, confidence, and the ability to
explain ideas clearly during interviews. Overall, the collection serves as a
strong revision and practice resource for anyone preparing for public sector
audit and finance roles.
Prepared
by: Accountants and Auditors
Compiled
by Johnson Yesaya Mgelwa.
A
lawyer stationed in Dar-es-salaam.
0628729934.
Date:
June 1, 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 Accounts Officer II – MDA & LGA.
1. Why is auditing important in the
public sector?
Model Answer:
Auditing is important in the public sector because public funds come from
taxpayers and must be used in the public interest. Public institutions are not
driven by profit, so strong accountability mechanisms are necessary. Auditing
promotes transparency, prevents misuse of resources, and provides assurance to
oversight bodies and citizens that funds are managed lawfully and effectively.
Panel follow-up:
How does this benefit ordinary citizens?
Follow-up answer:
When public funds are properly audited, it ensures money allocated for services
such as health, education, and infrastructure is actually used for those
purposes. This improves service delivery and public trust in government.
Hard probe:
Can auditing still be useful if no fraud is found?
Hard answer:
Yes. Auditing is not only about detecting fraud but also about improving
controls, efficiency, and governance. Even where no fraud exists, audits help
strengthen systems and prevent future risks.
2. Difference between financial audit and
performance audit
Model Answer:
A financial audit focuses on whether financial statements are accurate and
prepared according to applicable standards. A performance audit examines
whether resources were used economically, efficiently, and effectively. For
example, a financial audit may confirm that funds for a road project were spent
as recorded, while a performance audit would assess whether the road was
completed to standard and serves its purpose.
Panel follow-up:
Which type is more relevant in local government?
Follow-up answer:
Both are important, but performance audit is increasingly important because
citizens expect results from public spending, not just accurate records.
Hard probe:
Can a project pass financial audit but fail performance audit?
Hard answer:
Yes. Funds may be properly recorded and accounted for, yet the project may
deliver poor results or low impact, which would fail performance audit.
3. Management delays giving audit
documents
Model Answer:
I would formally request the documents and document all delays in working
papers. If delays continue, I would escalate through the audit reporting
structure. Persistent delays may lead to a limitation of scope which must be
disclosed in the audit report. Documentation and professionalism are key.
Panel follow-up:
At what point does this affect the audit opinion?
Follow-up answer:
If the missing documents are significant and affect key audit areas, it may
lead to a qualified opinion or disclaimer due to limitation of scope.
Hard probe:
What if management deliberately hides documents?
Hard answer:
That becomes a serious governance issue. I would escalate formally and ensure
the matter is clearly reported because it undermines accountability and
transparency.
4. What is value for money?
Model Answer:
Value for money means using public resources economically, efficiently, and
effectively to achieve intended outcomes. It focuses not only on spending less
but on achieving the best results with available resources.
Panel follow-up:
Give an LGA example.
Follow-up answer:
If a council builds a school cheaply but with poor quality, it is not value for
money. The project must be economical, efficient, and deliver intended
benefits.
Hard probe:
Can the cheapest option fail value for money?
Hard answer:
Yes. The cheapest option may lead to poor quality or repeated costs, making it
inefficient and ineffective in the long term.
5. You suspect fraud but lack evidence
Model Answer:
I would maintain professional skepticism and expand audit procedures to gather
sufficient evidence. I would avoid making accusations without proof and report
concerns through proper audit channels.
Panel follow-up:
What additional procedures would you perform?
Follow-up answer:
I would increase sampling, review supporting documents, conduct
reconciliations, and interview relevant staff.
Hard probe:
Should you confront the suspect directly?
Hard answer:
No. Confrontation without evidence can compromise investigations. The matter
should follow proper audit and investigation procedures.
6. Role of internal audit in protecting
citizens
Model Answer:
Internal audit protects citizens by ensuring public funds are used for intended
purposes. It strengthens controls, detects misuse, and promotes accountability,
which improves service delivery.
Panel follow-up:
How does this apply at LGA level?
Follow-up answer:
By auditing revenue, procurement, and projects, internal audit ensures funds
for local services like roads and clinics are properly used.
Hard probe:
Can internal audit prevent corruption?
Hard answer:
It cannot eliminate corruption entirely but can significantly reduce risk by
strengthening controls and detection mechanisms.
7. Explain materiality
Model Answer:
Materiality refers to the significance of an error or omission that could
influence decisions of users. It helps auditors focus on important issues
rather than minor ones.
Panel follow-up:
Can a small amount be material?
Follow-up answer:
Yes, especially if it involves fraud, senior officials, or legal violations.
Hard probe:
Who determines materiality?
Hard answer:
The auditor determines materiality based on professional judgment, audit
standards, and context.
8. Pressure to remove an audit finding
Model Answer:
I would remain independent and rely on evidence. I would explain professionally
that findings cannot be altered due to pressure and report the incident if
necessary.
Panel follow-up:
What protects you as an auditor?
Follow-up answer:
Professional standards, audit procedures, and reporting hierarchy protect
auditor independence.
Hard probe:
Would you resign if pressure persists?
Hard answer:
I would first escalate through proper channels. Integrity must be protected,
but procedures should be followed before drastic steps.
9. Role of Accounting Officer
Model Answer:
The Accounting Officer is responsible for proper management and accountability
of public funds, ensuring compliance with financial laws and maintaining
effective controls.
Panel follow-up:
How does internal audit relate to this role?
Follow-up answer:
Internal audit supports the Accounting Officer by reviewing controls and
identifying risks.
Hard probe:
Can the Accounting Officer be held liable?
Hard answer:
Yes. They are ultimately accountable for use of public funds.
10. Importance of internal controls
Model Answer:
Internal controls operate daily to prevent errors and fraud. They ensure
accuracy, accountability, and compliance.
Panel follow-up:
Give three examples.
Follow-up answer:
Segregation of duties, authorization procedures, and reconciliations.
Hard probe:
Can strong controls eliminate fraud?
Hard answer:
They reduce risk but cannot eliminate it completely.
11. How would you audit a government
project with cost overruns?
Model Answer:
I would compare actual expenditure with the approved budget and review whether
the overruns were properly authorized. I would examine procurement processes,
contract variations, payment certificates, and supporting documents. I would
also assess whether the additional spending provided value for money and
identify the responsible officers.
Panel follow-up:
What if the overruns were approved?
Follow-up answer:
Even if approved, I would assess whether the approval followed proper
procedures and whether the additional cost was justified and beneficial to the
project.
Hard probe:
What if the project is complete but clearly overpriced?
Hard answer:
I would report it as a value-for-money issue, highlighting weak planning,
procurement weaknesses, or poor contract management, even if procedures were
followed.
12. What ethical qualities must an
internal auditor possess?
Model Answer:
An internal auditor must demonstrate integrity, objectivity, independence,
confidentiality, and professional competence. These qualities ensure audit work
remains credible, unbiased, and reliable.
Panel follow-up:
Which of these is most tested in real work?
Follow-up answer:
Integrity and independence are most tested because auditors often face pressure
to overlook findings.
Hard probe:
Can competence compensate for lack of integrity?
Hard answer:
No. Technical competence without integrity undermines audit credibility and
public trust.
13. How do you distinguish between error
and fraud?
Model Answer:
An error is unintentional, while fraud involves deliberate deception. I would
analyze patterns, intent, and supporting evidence. Repeated irregularities or
concealment often indicate fraud rather than error.
Panel follow-up:
What indicators suggest fraud?
Follow-up answer:
Missing documents, altered records, unusual transactions, and deliberate
concealment are strong indicators.
Hard probe:
Should you label something as fraud in the report?
Hard answer:
Only if there is sufficient evidence. Otherwise, I would report it as suspected
fraud or irregularity and recommend further investigation.
14. What challenges arise when auditing
donor-funded projects?
Model Answer:
Challenges include multiple reporting requirements, strict compliance
conditions, foreign currency transactions, and tight timelines. Auditors must
carefully review donor agreements and ensure funds are used according to both
government and donor requirements.
Panel follow-up:
How do you manage different reporting standards?
Follow-up answer:
By reviewing donor agreements and aligning audit procedures with both local
regulations and donor requirements.
Hard probe:
Which takes priority — donor rules or government rules?
Hard answer:
Both must be complied with. Any conflict should be highlighted and reported
clearly.
15. Why should audit recommendations be
practical?
Model Answer:
Practical recommendations are more likely to be implemented and help management
take corrective action. Unrealistic recommendations may be ignored and lead to
recurring findings.
Panel follow-up:
What makes a recommendation strong?
Follow-up answer:
It should be clear, achievable, cost-effective, and address the root cause of
the problem.
Hard probe:
Should auditors consider cost when making recommendations?
Hard answer:
Yes. Recommendations should be realistic and proportionate to the risk and
available resources.
16. How do you handle disagreements
within an audit team?
Model Answer:
I would resolve disagreements professionally by referring to audit evidence,
standards, and objectives. Open discussion helps reach consensus while
maintaining respect for team hierarchy.
Panel follow-up:
What if a senior auditor disagrees with you?
Follow-up answer:
I would present evidence respectfully and accept the final decision while
ensuring my concerns are documented if necessary.
Hard probe:
What if disagreement affects audit quality?
Hard answer:
Audit quality must come first. Issues should be escalated appropriately.
17. What is the purpose of an audit
query?
Model Answer:
An audit query highlights an issue identified during audit and seeks
management’s explanation or corrective action. It forms the basis for audit
conclusions and recommendations.
Panel follow-up:
When does a query become a finding?
Follow-up answer:
When management’s response is unsatisfactory or evidence confirms the issue.
Hard probe:
Can a query be withdrawn?
Hard answer:
Yes, if management provides sufficient evidence resolving the issue.
18. Why is audit documentation important?
Model Answer:
Documentation provides evidence of work performed and supports audit
conclusions. It allows for review, follow-up, and protects the auditor legally.
Panel follow-up:
What happens if documentation is weak?
Follow-up answer:
Audit findings may be challenged and credibility reduced.
Hard probe:
Can an audit opinion be defended without documentation?
Hard answer:
No. Proper documentation is essential for supporting conclusions.
19. How is internal audit independence
maintained in MDA/LGA?
Model Answer:
Internal audit independence is maintained by reporting functionally to the
Audit Committee and administratively to top management, while adhering to
professional standards and avoiding operational roles.
Panel follow-up:
Why is independence important?
Follow-up answer:
It ensures audit findings are objective and free from influence.
Hard probe:
Can internal audit ever lose independence?
Hard answer:
Yes, if auditors perform operational duties or face management pressure.
20. What would you do if audit
recommendations are repeatedly ignored?
Model Answer:
I would report them as recurring findings, escalate their significance, and
highlight governance weaknesses. Persistent non-implementation indicates poor
accountability.
Panel follow-up:
Who should be informed?
Follow-up answer:
Senior management and the Audit Committee.
Hard probe:
Does repeated non-implementation affect audit opinion?
Hard answer:
It may affect overall conclusions on governance and control effectiveness.
21. Why is bank reconciliation important?
Model Answer:
Bank reconciliation ensures cash records match bank statements and helps detect
errors, fraud, or unauthorized transactions. It promotes accuracy and financial
discipline.
Panel follow-up:
How often should it be done?
Follow-up answer:
At least monthly, or more frequently for high-risk accounts.
Hard probe:
Who should review reconciliations?
Hard answer:
An independent officer not involved in cash handling.
22. Why is audit follow-up important?
Model Answer:
Follow-up ensures recommendations are implemented and corrective action taken.
Without follow-up, audit impact is lost.
Panel follow-up:
Who is responsible for implementation?
Follow-up answer:
Management is responsible, while internal audit monitors.
Hard probe:
What if management refuses to implement?
Hard answer:
Escalate to higher authority and report as recurring risk.
23. How would you audit revenue
collection in an LGA?
Model Answer:
I would review revenue systems, test completeness of collections, compare
trends, verify receipts, and confirm remittances to the bank and Treasury.
Panel follow-up:
What are common revenue risks?
Follow-up answer:
Under-collection, non-remittance, and fake receipts.
Hard probe:
How do you detect revenue leakage?
Hard answer:
Through reconciliation, trend analysis, and surprise checks.
24. What risks arise when procurement
rules are ignored?
Model Answer:
Ignoring procurement rules increases corruption risk, poor value for money, and
legal violations. It undermines transparency and service delivery.
Panel follow-up:
What is the auditor’s role?
Follow-up answer:
To identify non-compliance, quantify impact, and recommend corrective action.
Hard probe:
Can emergency procurement be abused?
Hard answer:
Yes. Repeated emergency procurement may indicate control bypass.
25. Why do you want to work in public
sector internal audit?
Model Answer:
I want to contribute to accountability and good governance. I bring analytical
skills, integrity, and commitment to professional standards. I am motivated to
ensure public resources are used effectively for national development.
Panel follow-up:
What value will you add in your first year?
Follow-up answer:
I will focus on learning systems quickly, supporting risk-based audits, and
producing practical recommendations.
Hard probe:
Why should we choose you?
Hard answer:
I combine technical knowledge, integrity, and commitment to public service. I
am ready to learn, adapt, and contribute to strengthening internal controls and
accountability.
26. What is the ultimate purpose of a
public sector audit beyond checking figures?
Model Answer:
Beyond verifying figures, the ultimate purpose of public sector auditing is to
ensure accountability for public resources. It confirms whether funds have been
used lawfully, responsibly, and in the public interest, while strengthening
transparency, governance, and trust between government and citizens.
Panel follow-up:
So auditing is not only about detecting errors?
Follow-up answer:
Correct. Auditing also improves systems, strengthens controls, and promotes
efficient use of resources even when no fraud is detected.
Hard probe:
If financial statements are correct but services are poor, has the audit
succeeded?
Hard answer:
No. Public sector auditing must also consider value for money and service
delivery outcomes, not just accuracy of figures.
27. How does public auditing support
democratic governance?
Model Answer:
Public auditing supports democratic governance by providing independent
assurance to oversight bodies such as Parliament and councils on how public
funds are managed. This enables elected leaders to hold public officials
accountable and make informed decisions.
Panel follow-up:
Why is independence important in this process?
Follow-up answer:
Without independence, audit findings could be influenced by those being
audited, reducing credibility and weakening oversight.
Hard probe:
Can democracy function well without strong auditing?
Hard answer:
It would be difficult because accountability and transparency would be weak,
allowing misuse of public resources to go unchecked.
28. Why is independence critical for a
public sector auditor?
Model Answer:
Independence ensures that auditors can evaluate operations objectively without
influence from management. It protects credibility of findings and strengthens
public trust in audit reports.
Panel follow-up:
What threatens auditor independence?
Follow-up answer:
Pressure from management, involvement in operations, or conflicts of interest
can threaten independence.
Hard probe:
How do you maintain independence in practice?
Hard answer:
By adhering to professional standards, avoiding operational roles, documenting
evidence, and reporting through proper audit structures.
29. Why is accountability stricter in
public finance than in private sector?
Model Answer:
Public funds belong to citizens, not managers. Public officials act as
custodians and must justify every expenditure. This requires higher
transparency, legal compliance, and reporting standards.
Panel follow-up:
Does this affect how audits are conducted?
Follow-up answer:
Yes. Public audits emphasize legality, value for money, and accountability to
citizens rather than profit.
Hard probe:
Should minor misuse be ignored if service delivery is good?
Hard answer:
No. Even small misuse undermines accountability and public trust.
30. How does auditing improve service
delivery?
Model Answer:
Auditing identifies inefficiencies, wastage, and misuse of funds that affect
service delivery. By recommending improvements, audits help ensure resources
achieve intended outcomes such as better schools, roads, and healthcare.
Panel follow-up:
Can audit directly improve services?
Follow-up answer:
Indirectly. Audits highlight problems and recommend corrective action, which
improves service delivery when implemented.
Hard probe:
What if management ignores recommendations?
Hard answer:
Issues should be reported as recurring findings and escalated to strengthen
accountability.
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