Public Private Partnerships Auditing Guidelines

  1. The main characteristic of PPP is
    1. long term (sometimes upto 30 years) service provisions
    2. The transfer of risks to the private sector
    3. different forms of long-term contracts drawn up between legal entities and public authorities
    4. All of the above
  2. What is the ingredient common to all types of PPP
    1. The public sector transfers the overall responsibility to provide the public service
    2. value for money will be the basic criterion for the public sector
    3. No balanced sharing of the risks and gains between the public sector and private sector
    4. none of the above
  3. The National highway projects contracted out by NHAI under PPP mode is an example of
    1. LOT
    2. BOOT
    3. BoT
    4. DBFO
  4. The common characteristic of Institutional PPPs and contractual PPPs is
    1. The operation of a facility is contracted out to another private party
    2. The users pay for the facility availed and such charges accrue to the private sector partner
    3. The public sector usually designs, constructs and operate PPP
    4. none of the above
  5. What distinguishes each type of PPP model from one another is
    1. the degree of risk and responsibility borne by the private sector partner
    2. the degree of risk and responsibility borne by the public sector
    3. The private sector partner will bring in most of the investment requirements
    4. none of the above
  6. The main difference between PPP and privatization is
    1. There is no permanent transfer of ownership of assets to private partner
    2. The responsibility and accountability to deliver the goods and services remains with the state/public sector
    3. Besides the transfer of ownership to the private sector, the accountability is also shifted to the purchaser
    4. none of the above
  7. Find out the incorrect statement
    1. The private sector partner should equally gain from the innovation brought about by it
    2. The private entrepreneurs come into the PPP arrangements primarily with profit motive
    3. PPP projects are aimed to provide ‘improved’ public services by transferring the risks to the private sector
    4. none of the above
  8. Viability Gap Funding (VGF) is available only
    1. If the private company in which 51% shares or more of the subscribed and paid equity are owned and controlled by it
    2. If the private company has been selected on the basis of competitive bidding
    3. If the private company takes the responsibility of financing, construction and maintenance of the project during the concession period
    4. All of the above
  9. In PPP audit, the emphasis would be
    1. on the means to achieve the PPP arrangements
    2. on the end results of the PPP arrangements
    3. on the operational risks transferred to the private partner
    4. none of the above
  10. Which among the following is not a consideration requiring intervention of public audit in PPP
    1. The right to levy tolls/user charges gets shifted to the private sector partner
    2. The contract is usually for a long term and thereby alienates the statutory right involved for a long period
    3. The transfer of the public assets to a private body for long duration
    4. The cost of execution met by the private partner is relatively higher
  11. Find out the incorrect statement w.r.to PPP audit
    1. value for money is the driver for adopting the PPP approach rather than capital scarcity
    2. there is conflicting and fundamentally differing approaches of two partners to the PPP agreement
    3. The relevance of regularity and compliance audit is limited
    4. The private partners are unlikely to resist the move on the plea of commercial confidentiality
  12. The impact of public audit of concession agreements PPP projects is that
    1. The audit findings will have only academic value
    2. The contractual clauses could be amended and altered based on the findings of the SAI
    3. For ensuring accountability and for future probity/lessons learnt
    4. Both (a) & (c)
  13. Find out the true statement
    1. The DPC Act does not directly contemplate the audit of PPP projects with only minority participation in Government agency
    2. Audit of PPP projects by CAG is possible by virtue of section 20(1) & 20(3) of the DPC Act
    3. The best course of action would be to include a clause in the PPP agreement to provide for the audit oversight of the CAG
    4. All of the above
  14. With regard to the risks, the public auditor has to ascertain
    1. How each of the risks would impact the public sector participants and consumers
    2. Whether risk allocations have been judicious and fair
    3. Whether the risks envisaged by the all parties are in balance
    4. All of the above
  15. Which among the following risk is borne by the public sector partner
    1. Financing risk
    2. Construction risk
    3. operation Maintenance risk
    4. Termination risk
  16. The factor irrelevant for the selection of a project for PPP audit is
    1. Government guarantees and other state support elements provided in the contract
    2. standards and quality norms/criteria build into the contract
    3. The extent and value of the shareholding/participation of the private sector alone
    4. none of the above
  17. In the audit of the project formulation, which among the following issue will be of no relevance
    1. Are the cost estimates transparent
    2. How was the pattern of state funding worked out
    3. The residual value of assets at the time of closing the contract
    4. none of the above
  18. The audit of concessions and concession period includes review of
    1. the concession granted to the concessionaire in terms of the quantum and the period of concession
    2. Reasonableness of the concessions granted,
    3. Appropriateness of the area of land transferred for the purpose of project and commercial development
    4. All of the above
  19. The audit of concession agreements does not include to ascertain
    1. was the competetitive bidding process adopted?
    2. Is the concession agreement fashioned faithfully on the pattern of relevant model concession Agreement?
    3. Technical issues at the risk of neglecting the social and economic effects of PPP?
    4. Is the concession agreement drafted without giving room for unintended gains to private partner?
  20. The ‘Rate of Return’(ROR) is
    1. a function of the equity support given by the partners for the project
    2. a user charge reasonably linked to the total project cost
    3. a critical input into several aspects of the contracting agreements between the partners to a PPP
    4. none of the above
  21. In Audit of Total Project Cost (TPC) the public auditor should
    1. see that the TPC is not padded up
    2. eschew the temptation of expecting the public authority to transfer most of the risks to the private partner
    3. see how is any cost accruing due to ‘change of scope’ to be included in the TPC?
    4. All of the above
  22. Which among the following is incorrect as to auditing PPP for value for money (VFM)
    1. public auditor should evaluate whether PPP has met intended social and economic objectives
    2. public auditors should look only from the angle of safeguarding the interests of public sector partner
    3. the concession granted proportionate to the risks allocated to the private partner
    4. none of the above
  23. The important principle that the public auditor to bring out in their reports is
    1. what has been achieved rather than how it was achieved by the private partner
    2. the review of end results rather than the ‘how’ of achieving them
    3. the auditing do not focus only on technical issues at the risk of neglecting the social and economical effects of PPPs
    4. All of the above
  24. Financial close means
    1. fulfillment of all conditions subsequent to the initial availability of funds for PPP project
    2. fulfillment of all conditions precedent to the initial availability of funds for PPP project
    3. a facility given by the public sector to the private sector to operate the PPP for a certain period of time
    4. none of the above
  25. Viability Gap Funding is
    1. a one-time grant provided by the GOI to PPP with the objective of making such projects commercially viable
    2. a deferred grant provided by the GOI to PPP with the objective of making such projects commercially viable
    3. either (a) or (b)
    4. none of the above

Comments

  1. I believe there are many more pleasurable opportunities ahead for individuals that looked at your site.audit and assurance firms in dubai

    ReplyDelete
  2. Very pertinent and useful mcqs with answers, thanks

    ReplyDelete

Post a comment