ICAN Public Sector Accounting and Finance 2026 past questions and answers

1. Commit the full ceiling immediately and seek legislative approval after the year ends.
2. Prepare estimates solely from last year's spending, without reference to policy priorities.
3. Prioritise programmes against the development plan and ceiling, then submit estimates for appropriation before spending.
4. Treat the ministry's cash forecast as authority to spend, even if no appropriation exists.

Answer: C. Prioritise programmes against the development plan and ceiling, then submit estimates for appropriation before spending.

A credible budget connects policy priorities to available resources and must receive the required appropriation before expenditure. A cash forecast or prior-year spending alone does not authorise expenditure.

1. Recognise the equipment as an asset and the unpaid amount as a payable.
2. Recognise nothing until the cash payment is made.
3. Recognise only a cash expense because delivery occurred before year-end.
4. Recognise a payable but omit the equipment until the supplier is paid.

Answer: A. Recognise the equipment as an asset and the unpaid amount as a payable.

On the accrual basis, control of the delivered equipment and the obligation to pay are recognised when they arise, not when cash moves. Option B describes cash-basis timing.

1. Show both balances as external assets and liabilities because they belong to separate legal entities.
2. Show the receivable only, because the ministry controls the agency.
3. Show the payable only, because the agency incurred the obligation.
4. Eliminate the reciprocal intra-entity balances on consolidation.

Answer: D. Eliminate the reciprocal intra-entity balances on consolidation.

Consolidated statements present the controlled reporting entity as one economic entity, so reciprocal internal balances are eliminated. Retaining both would overstate consolidated assets and liabilities.

1. Award automatically to the lowest-priced bidder, regardless of the stated specification.
2. Apply the disclosed responsiveness and evaluation criteria consistently, documenting the decision.
3. Add a new safety score after opening bids and apply it only to the lowest-priced bidder.
4. Ask the preferred bidder privately to revise its bid after seeing competitors' prices.

Answer: B. Apply the disclosed responsiveness and evaluation criteria consistently, documenting the decision.

A transparent process applies the announced criteria consistently and documents why a bid is or is not responsive. The lowest price alone does not cure failure of a mandatory requirement; changing criteria after opening undermines fairness.

1. Delete the duplicate payment entry so the issue does not affect the year-end report.
2. Confront the supplier publicly before preserving the payment records.
3. Secure and document the evidence, then report the matter through the established independent oversight channel.
4. Wait until the next audit cycle because only the external auditor may report irregularities.

Answer: C. Secure and document the evidence, then report the matter through the established independent oversight channel.

Preserving evidence and promptly reporting through the designated oversight channel supports investigation and accountability. Altering records or delaying the report could compromise both.