GES Promotion Interview Questions & Answers (Accounts & Audit) Part 4

QUESTION 1

WHERE IS THE SUMMARY OF THE ENTRIES IN THE STUDENTS JOURNAL POSTED OR TRANSFERRED TO AND BY WHAT MEANS?

The grand total is transferred to the debit side of Students Control Account and totals of individual charges transferred to the credit sides of the Revenue Accounts under Boarding User Fee, (IGF).

The transfers are done by passing them through the general journal.

 

QUESTION 2

WHAT DO THE DEBIT AND CREDIT ENTRIES UNDER STUDENTS CONTROL ACCOUNT STAND FOR?

The debit entries represent expected revenue and credit refunds, and the credit entries represent fees paid. All things being equal the balance of the Students Control Account should agree with the total balances of the individual students’ accounts.

 

QUESTION 3

IF YOUR TRIAL BALANCE SHOWS A DEBIT BALANCE OF ¢150.00 UNDER STUDENTS CONTROL ACCOUNT DOES IT MEAN THAT YOUR STUDENTS DEBTORS’ LIST SHOULD ALSO BE THE SAME?

No because the Student Control Account figure could include overpaid bills (student creditors) in which case the total debtors should be more than $150.00.

 

QUESTIONI 4

THE BALANCE OF THE STUDENTS CONTROL ACCOUNT AND THE TOTAL OF THE INDIVIDUAL STUDENTS ACCOUNT BALANCES ARE SUPPOSED TO AGREE AT ANY POINT IN TIME BUT THIS IS ALMOST ALWAYS NOT THE CASE. WHAT ACCOUNTS FOR THE DISAGREEMENT?

The Students Control Account represents the total of all the students’ accounts and they all originate from the charges used for the preparation of the students’ bills. At the beginning of the term journal entries are passed debiting Students Control Account and crediting the various Revenue Accounts. At the same time the students’ accounts are debited with the total charges the sum of which is the same as the debit figure in the Students Control Account.

In the course of the term, however, certain intermediary transactions occur which need to be accounted for to adjust existing figures in the Students Control and Revenue accounts. Failure on the part of the Accountant to take action on such intermediary transactions brings about distortion between the Students Control Account balance and the students’ accounts total.

These intermediary transactions are:

1. Midstream admissions,

2. Withdrawals and dismissals,

3. Change from day to boarding status,

4. Change from boarding to day status

5. Manipulation on the part of the accounts officer in charge of the students ledgers, e.g. pulling out the accounts of a student.

It is necessary to pass journal entries to account for the changes listed above, even though the last point needs extra control measures to detect.

 

QUESTION 5

WHAT ACTION DO YOU NEED TO TAKE AS AN ACCOUNTANT IF YOU REALIZE THE LOSS OF ONE OF YOUR RECEIPT BOOKS?

The loss has to be reported to the head of department who will initiate investigation into circumstances leading to the loss and whether the receipt book has been utilized to collect some revenue on behalf of the institution.

The head of department will also immediately give sufficient warning to the public concerning the lost receipt book and such notice may include gazette publication, newspaper notices and notification by circular to officials likely to be concerned with the loss.

 

QUESTION 6

WHY DO YOU NEED TO KEEP A PURCHASES JOURNAL?

It provides information about unpaid suppliers at any point in time and serves as a check on manipulation of creditors’ list.

 

QUESTION 7

A BOARD OF SURVEY REPORT INDICATES THAT THERE IS A LOSS OF STORES AT THE STORE IN RESPECT OF 10BAGS OF RICE COSTING ¢2,500.

WHAT ACTION WOULD YOU TAKE AS AN ACCOUNTANT AND HOW WOULD YOU INCORPORATE THIS SHORTFALL INTO YOUR ACCOUNTS?

A recommendation should be made to management for the storekeeper to be surcharged with the value of the 10bags of rice and a payment plan agreed upon. Upon acceptance of the recommendation a journal entry should be passed to make the Storekeeper a debtor and foodstuffs account credited with same amount to reduce expenditure on foodstuffs Dr Storekeeper ¢2,500, Credit Foodstuffs ¢2500).

Whenever any money is paid it should be credited to the Storekeeper’s account. When the amount is fully paid the balance in his account will go off and cash would have been increased to the same tune. Administratively however the Storekeeper should be given the chance to defend himself before a Disciplinary Committee.

 

QUESTION 8

THERE IS EXCESS OF STOCK OVER THE LEDGER BALANCE OF A PARTICULAR ITEM AT THE STORE. WHAT COULD ACCOUNT FOR THIS INBALANCE?

The excess of stock over the ledger balance may arise for the following reasons.

1. Unrecorded receipts – either the items have not been taken on charge through the SRA or done but not transferred to the ledger.

2. Issues made but goods not given out.

3. Over-delivery which was not noted when taking the items on charge.

4. Collusion between the storekeeper and the user unit e.g. the kitchen as relating to (11) above.

5. Storage of personal items at the stores (which is not permissible).

 

QUESTION 9

WHAT IS A FINANCIAL STATEMENT AND WHAT ARE THE MAIN COMPONENTS OF THE FINANCIAL STATEMENT?

A Financial Statement (also referred to as Final Accounts) is a statement that gives an overview of the financial position of an institution. The financial statement comprises the Balance Sheet, Income and Expenditure Account or Income Statement, Notes and Cash Flow Statement.

 

QUESTION 10

WHAT IS A CASH FLOW STATEMENT?

It is a statement that shows how cash has been generated and disposed off by an organization over a period of time.

 

QUESTION 11

WHAT IS THE IMPORTANCE OF NOTES IN THE FINANCIAL STATEMENT?

1. It provides the basis for the preparation of the accounts whether cash or accrual based.

2. It explains in detail the items that appear in the Balance Sheet and the Income and Expenditure Account or Income Statement. For instance, stock may appear in the Balance Sheet as one figure but in the notes would be found the actual stocks e.g. stationery, food items, building materials, etc., and their quantities and unit prices.

 

QUESTION 12

WHAT IS A BALANCE SHEET? WHAT ARE THE MAIN PARTS OF THE BALANCE SHEET OF AN EDUCATIONAL INSTITUTION?

It is a statement that shows the assets, liabilities and accumulated surplus/deficit of an institution. The two main parts of the balance sheet of an educational institution are the current assets and current liabilities.

 

QUESTION 13

GIVE THREE EXAMPLES OF CURRENT ASSETS AND TWO LIABILITIES AS MAY APPEAR IN THE BALANCE SHEET OF AN EDUCATIONAL INSTITUTION.

Current Assets – Cash/Bank, Debtors, Stock.

Liabilities – Creditors, Student Creditors.

 

QUESTION 14

HOWIS DEPRECIATION OF FIXED ASSETSTREATED IN THE FINANCIAL STATEMENT OF AN EDUCATIONAL INSTITUTION?

When a fixed asset is purchased the full cost is presumed consumed in the year of acquisition and therefore the full cost is captured as expenditure in the Income and Expenditure Account. However information on the fixed asset should be recorded in the Fixed Assets Register.

 

QUESTION 15

WHAT ARE THE QUALITATIVE CHARACTERISTICS OF A FINANCIAL STATEMENT?

It must be

1. Comparable
2. Understandable
3. Reliable
4. Relevant
5. Timely

 

QUESTION 16

WHAT FACTORS ACCOUNT FOR LATE AND NON-SUBMISSION, AND INACCURATE FINANCIAL RETURNS FROM THE INSTITUTIONS? HOW CAN THE SYSTEM BE IMPROVED UPON?

The factors which account for the above include

1. Laziness on the part of the Accountant
2. Inability to write and update books of accounts (inefficiency)
3. Lack of supervision of work of junior officers
4. Lack of supervision and non-involvement in the preparation of financial reports on the part of department heads.
5. Lack of consultation
6. Non-cooperation from the user units which fail to account for funds released to them.

To address the problems concerning financial returns the following should be done:

1. Training programmes should be organized for Accountants in respect of keeping financial records and reporting.

2. There should be regular monitoring by the Regional/District Accountant to know how officers under them are performing and also to identify their peculiar problems.

3. Accounting heads should be advised to supervise the work schedules of junior officers to ensure that their outputs are accurate.

4. Departmental heads should be encouraged to take interest in the preparation of financial reports and also make them responsible for signing all reports and covering letters relating to them.

5. Defaulting Accountants should be queried and sanctioned for repeated default.

 

QUESTION 17

WHY IS THERE THE NEED TO PREPARE FINANCIAL RETURNS/ REPORTS? ENUMERATE SOME FINANCIAL RETURNS/REPORTS PREPARED AND SUBMITTED TO THE GES HEADQUARTERS.

1. The preparation and submission of financial returns and reports is mandatory as required under Section 79 and 80 of the Public Financial Management Act 2016 Act 921. In effect it is a legal requirement.

2. Financial Returns help us to know the levels and trend of our expenditure as against our revenue and targets.

3. Financial Returns serve as a guide when preparing our budget for the ensuing year.

4. Financial Returns help us take management decisions at departmental and national levels.

5. Financial Returns are required by stakeholders like our Developmental Partners e.g. the World Bank, ADB, DFID and JICA.

Some of the financial returns and reports prepared and submitted to the Headquarters are:

1. Monthly Trial Balance,

2. Annual Financial Statement,

3. GOG Monthly Returns,

4. Monthly Non-Tax Revenue (IGF) Returns,

5. Donor Fund Returns,

6. Monthly Revenue and Expenditure Returns (on all sources of fund),

7. Termly reports on students population indicating day/boarding and gender status,

8. Response to audit observations

9. Internal Audit Unit Reports.

 

QUESTION 18

AT THE END OF A SCHOOL TERM HOW CAN YOU KNOW THAT YOU HAVE OPERATED WITHIN YOUR BUDGET OR EXECUTED YOUR BUDGET EFFICIENTLY?

This can be done by comparing your expenditure with your budget taking into account your stock levels, debtors and creditors and also planned projects thathave been executed.

 

QUESTION 19

WHAT IS INTERNAL CONTROL? GIVE FOUR EXAMPLES OF INTERNAL CONTROLS PRACTISED IN THE GHANA EDUCATION SERVICE.

Internal control is a measure, put in place by management to ensure efficient delivery, safeguard assets, reduce fraud and increase productivity. Various forms of internal controls are put together to achieve the above objectives. Examples of internal controls practised in the Ghana Education Service include:

1. Authorization: e.g. the Departmental Head approving all payments before cheques are issued by the Accountant.

2. Segregation of Duties – different people performing a role in such a way that the work of one person serves as a check on the others and that one person does not start and conclude a whole process e.g. one person collects school fees, another enters into the student ledgers, and another pays the money to the bank.

3. Physical control – examples are, labeling of equipment, placement of locks to rooms and vital areas, building of fence walls and putting security men at gates.

4. Administrative – use of work attendance register or recording machine, keeping of vehicle log book, issue of queries, institution of disciplinary committees, establishment of the Internal Audit Unit and supervision which goes with delegation of duties.

 

QUESTION 20

DO YOU THINK IT IS NECESSARY TO HAVE THE INTERNAL AUDIT UNIT WITHIN YOUR DEPARTMENT OR WHAT ROLE DOES THE INTERNAL AUDIT UNIT PLAY IN THE ADMINISTRATION OF GHANA EDUCATION SERVICE?

The Internal Audit Unit is a semi-independent unit within its establishment and serves as a watchdog on the establishment. Its main duties are to ensure that basic financial regulations and procedures are adhered to and also controls are put in place to curb fraud and increase productivity. In relation to the above the unit pre-audits payment vouchers to ensure that payments being made are legitimate (that the related documents are attached to the payment voucher).

The unit also audits the accounts of its department and this cleans the financial operations of the department for a smoother work by the external auditors.

A member of the Unit serves as ex – officio member on the Audit Committee, formally ARIC, of its department. If the Internal Audit Unit works effectively its department is prevented from appearing before the Public Accounts Committee (PAC).

CHECK OUT:
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 1
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 2
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 3
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 4
GES Promotion Interview Questions & Answers (Accounts & Audit) Part 5