PUBLIC FINANCIAL MANAGEMENT (PUB4861)
ASSESSMENT 02, SEMESTER 1 NEW 2026-2027 UPDATE
ALL COMPREHENSIVE WELL ELABORATED REAL
QUESTIONS AND A DETAILED BREAKDOWN OF ALL
CORRECT VERIFIED ANSWERS EXAM PLUS
CERTIFIED RATIONALES | COMPLETE TEST
SOLUTION | PASSED AND REWARDED WITH
DISTINCTION FOR ORIGINALLY GRADE A+ BRAND
NEW!!!
1. What is the primary purpose of public financial
management in the South African public sector?
A. Maximising shareholder value
B. Ensuring public accountability and the efficient
use of resources
C. Increasing market share of state-owned
enterprises
D. Enhancing the brand reputation of government
departments
B. Ensuring public accountability and the
efficient use of resources
,Rationale: The primary goal of public financial
management is to ensure that public funds are
used accountably, efficiently, and effectively to
deliver services that meet societal needs. This is
distinct from private sector objectives such as profit
maximisation or shareholder value.
2. Which section of the Constitution of the Republic
of South Africa, 1996, establishes the National
Treasury?
A. Section 213
B. Section 214
C. Section 215
D. Section 216
D. Section 216
Rationale: Section 216 of the Constitution
establishes the National Treasury and requires
national legislation to prescribe measures to ensure
transparency and expenditure control in all
spheres of government.
3. What does the acronym MFMA stand for in South
African public financial management?
,A. Municipal Financial Management Act
B. Municipal Finance Management Act
C. Municipal Fiscal Management Act
D. Municipal Fund Management Act
B. Municipal Finance Management Act
Rationale: The Municipal Finance Management
Act (MFMA) 56 of 2003 is the key legislation
governing financial management in South African
municipalities.
4. Which of the following is NOT a key objective of
the Public Finance Management Act (PFMA) 1 of
1999?
A. To regulate financial management in the national
and provincial spheres
B. To ensure that all revenue, expenditure, assets,
and liabilities are managed efficiently
C. To provide for the responsibilities of persons
entrusted with financial management
D. To determine the fiscal framework for local
government
, D. To determine the fiscal framework for local
government
Rationale: The PFMA applies to national and
provincial government. Local government financial
management is governed by the MFMA. The fiscal
framework for local government is set through the
Division of Revenue Act and related
intergovernmental fiscal processes.
5. What is the primary role of the Auditor-General of
South Africa (AGSA)?
A. To prepare the national budget
B. To audit and report on the accounts of all
government institutions
C. To collect taxes on behalf of the state
D. To formulate fiscal policy
B. To audit and report on the accounts of all
government institutions
Rationale: The Auditor-General is established by
Chapter 9 of the Constitution and is responsible for
auditing and reporting on the accounts of all
ASSESSMENT 02, SEMESTER 1 NEW 2026-2027 UPDATE
ALL COMPREHENSIVE WELL ELABORATED REAL
QUESTIONS AND A DETAILED BREAKDOWN OF ALL
CORRECT VERIFIED ANSWERS EXAM PLUS
CERTIFIED RATIONALES | COMPLETE TEST
SOLUTION | PASSED AND REWARDED WITH
DISTINCTION FOR ORIGINALLY GRADE A+ BRAND
NEW!!!
1. What is the primary purpose of public financial
management in the South African public sector?
A. Maximising shareholder value
B. Ensuring public accountability and the efficient
use of resources
C. Increasing market share of state-owned
enterprises
D. Enhancing the brand reputation of government
departments
B. Ensuring public accountability and the
efficient use of resources
,Rationale: The primary goal of public financial
management is to ensure that public funds are
used accountably, efficiently, and effectively to
deliver services that meet societal needs. This is
distinct from private sector objectives such as profit
maximisation or shareholder value.
2. Which section of the Constitution of the Republic
of South Africa, 1996, establishes the National
Treasury?
A. Section 213
B. Section 214
C. Section 215
D. Section 216
D. Section 216
Rationale: Section 216 of the Constitution
establishes the National Treasury and requires
national legislation to prescribe measures to ensure
transparency and expenditure control in all
spheres of government.
3. What does the acronym MFMA stand for in South
African public financial management?
,A. Municipal Financial Management Act
B. Municipal Finance Management Act
C. Municipal Fiscal Management Act
D. Municipal Fund Management Act
B. Municipal Finance Management Act
Rationale: The Municipal Finance Management
Act (MFMA) 56 of 2003 is the key legislation
governing financial management in South African
municipalities.
4. Which of the following is NOT a key objective of
the Public Finance Management Act (PFMA) 1 of
1999?
A. To regulate financial management in the national
and provincial spheres
B. To ensure that all revenue, expenditure, assets,
and liabilities are managed efficiently
C. To provide for the responsibilities of persons
entrusted with financial management
D. To determine the fiscal framework for local
government
, D. To determine the fiscal framework for local
government
Rationale: The PFMA applies to national and
provincial government. Local government financial
management is governed by the MFMA. The fiscal
framework for local government is set through the
Division of Revenue Act and related
intergovernmental fiscal processes.
5. What is the primary role of the Auditor-General of
South Africa (AGSA)?
A. To prepare the national budget
B. To audit and report on the accounts of all
government institutions
C. To collect taxes on behalf of the state
D. To formulate fiscal policy
B. To audit and report on the accounts of all
government institutions
Rationale: The Auditor-General is established by
Chapter 9 of the Constitution and is responsible for
auditing and reporting on the accounts of all
