TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

ACADEMIC YEAR 2022/2023

MAY/JUNE EXAMINATION

BBFA4023 PUBLIC SECTOR ACCOUNTING

THURSDAY, 25 MAY 2023 TIME: 2.00 PM – 5.00 PM

(3 HOURS)

BACHELOR OF ACCOUNTING (HONOURS)

Instructions to Candidates:

You are required to answer ALL FOUR (4) questions.

Marks will be awarded for clarity in presentation and logical in arguments.

All workings that support the answers should be shown.

Marks will be awarded for clarity in presentation and logical arguments.

You are required to continue with a fresh page when answering new questions or parts of the
question.

This question paper consists of 4 questions on 4 printed pages.

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BBFA4023 PUBLIC SECTOR ACCOUNTING

Answer ALL FOUR (4) questions.

Question 1

(a) Based on the information in the vote book extracts below, describe the possible transactions
that have taken place for items (i) to (v). (8 marks)

Outstanding Net Balance to

Transaction Dr Cr Liabilities Expenditure date

i Allocation RM40,000 Reduce

RM40,000

ii Allocation RM200,000 Increase

warrant RM200,000

iii Sign contract Increase Reduce

with Suria RM21,000 RM21,000
Sdn. Bhd.

iv Recoupment RM6,000 Increase Reduce

RM6,000 RM6,000

Reverse Reduce Increase

balance RM600 RM600
v

Full payment RM7,200 Reduce Increase

RM7,200 RM7,200

(b) The Malaysian public sector practises an accounting system known as fund accounting.

Discuss the THREE (3) types of funds maintained by the Malaysian Federal Government and
the objectives and characteristics of each of these funds. (12 marks)

(c) Discuss FIVE (5) sources of funds in the Malaysian Federal Consolidated Loan Account.
(5 marks)
[Total: 25 marks]

This question paper consists of 4 questions on 4 printed pages.

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BBFA4023 PUBLIC SECTOR ACCOUNTING

Question 2

(a) Discuss in detail the importance of the yearly Malaysian Government Budget as a management
instrument. (6 marks)

(b) Briefly discuss the role of the THREE (3) central agencies involved in the budgeting
framework of the Malaysian Government. (9 marks)

(c) The Malaysian Government employs budgetary control as a tool to deter misappropriation of
funds in the public sector. It is basically a process whereby actual results are compared with
budgets throughout the budget period. Budgets and their targets are continuously examined or
adjusted based on their performances.

Discuss FIVE (5) advantages of budgetary control in the context of the Malaysian public sector.
(10 marks)
[Total: 25 marks]

Question 3

(a) Discuss the functions of the National Audit Department in the Malaysian public sector and the
THREE (3) types of audits usually being carried out by this department. (9 marks)

(b) The objectives of the Government Transformation Plan (GTP) Malaysia are to improve the
efficiency with which the government delivers services and the accountability of outcomes
relevant to the Rakyat and to encourage the development of Malaysia into an advanced, united,
and just society with high standards of living for all. Several National Key Results Areas
(NKRAs) under the GTP were identified to improve the socio-economic growth of Malaysia.

Discuss ANY THREE (3) NKRAs under the GTP plan in terms of their objectives and
proposed actions/activities. (9 marks)

(c) The phrase “balanced scorecard” primarily refers to a performance management report used by
a management team in managing the implementation of a strategy or operational activities. This
concept of performance measurement was developed by Robert Kaplan in the 1990s.

Discuss your understanding of the above balanced scorecard concept. (7 marks)

[Total: 25 marks]

This question paper consists of 4 questions on 4 printed pages.

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BBFA4023 PUBLIC SECTOR ACCOUNTING

Question 4

(a) Discuss ANY FOUR (4) possible benefits of using the accruals basis of accounting in the public
sector and ANY FOUR (4) challenges to its implementation in the public sector in Malaysia.
(8 marks)

(b) Discuss the weaknesses in the Malaysian Government financial management system and the
efforts that have been taken by the Government to tackle these weaknesses. Give ANY FOUR
(4) examples of each. (8 marks)

(c) The Malaysian Government had encountered various weaknesses in its procurement systems.
The Auditor General had repeatedly highlighted these weaknesses in his annual audit reports to
the Parliament.

Discuss ANY FIVE (5) weaknesses in the Government procurement system and ANY FOUR
(4) actions in rectifying these problems. (9 marks)
[Total: 25 marks]

This question paper consists of 4 questions on 4 printed pages.