Question

A recommendation to improve the financial management of local bodies might include:

• A. Mandating the use of modern accounting and auditing systems.
• B. Increasing reliance on traditional, manual bookkeeping methods.
• C. Reducing transparency and public access to financial records.
• D. Allocating funds based on political influence rather than need.

Answer 1

Answer:

A. Mandating the use of modern accounting and auditing systems.

• To ensure financial accountability and informed decision-making, SFCs often recommend that local bodies adopt modern, standard-based accounting and auditing practices. This improves transparency and fiscal reporting.