December 2025 CPA Advanced Public Financial Management Past papers with answers

Description

CERTIFIED PUBLIC ACCOUNTANTS (CPA) ADVANCED LEVEL
ADVANCED PUBLIC FINANCIAL MANAGEMENT

THURSDAY: 4 December 2025. Morning Paper. Time Allowed: 3 hours.

This paper consists of five (5) questions. Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.
QUESTION ONE
(a) Explain FIVE functions of State Corporation Advisory Committee in your country. (10 marks)
(b) Evaluate FIVE strategies that could enhance the effective implementation of Single Treasury Account in County Governments. (10 marks)
(Total: 20 marks)

QUESTION TWO
(a) Explain FIVE roles of Public Accounts Committee (PAC) in the National Assembly. (10 marks)
(b) The integration of iTax into Kenya’s public finance ecosystem has played a pivotal role in advancing the goals of the Public Finance Management Act, 2012.

With reference to the above statement, analyse FIVE ways in which the integration of iTax supports the objectives of the Public Finance Management (PFM) Act. (10 marks) (Total: 20 marks)
QUESTION THREE
(a) Explain TWO conditions under which a county government can start a project financed by a grant or donation from a development partner that also requires County Government funding as per Public Finance Management Act. (4 marks)
(b) Examine THREE ways in which implementation of the Public Finance Management (PFM) Act of 2012 has improved financial governance and oversight practices in public sector in Kenya. (6 marks)

(c) The Ministry of Health in your country recently faced allegations of inefficiencies in service delivery. A report by an oversight body highlighted significant gaps in internal controls. To address these challenges, the Ministry’s senior leadership decided to strengthen its Internal Audit Unit.
Required:
Analyse FIVE roles that the Internal Audit Unit is expected to play in relation to the Public Sector Internal Control Systems. (10 marks)
(Total: 20 marks)

QUESTION FOUR
(a) Your government is in the process of entering into a Public Private Partnership (PPP) agreement with a private consortium led by the Wholesome Bridge Corporation (WBC). The private partner is responsible for financing, designing, constructing and operating the expressway for a period of 30 years under a Build-Operate-Transfer (BOT) model.
Required:
(i) Explain FOUR ways your government would ensure that the Public-Private Partnership (PPP) with the Wholesome Bridge Corporation (WBC) meets both public interests and project goals during the 30-year BOT agreement. (8 marks)
(ii) Analyse THREE potential risks of using a BOT model in the PPP agreement with Wholesome Bridge Corporation (WBC) for the expressway project. (6 marks)
(b) Examine THREE roles of Cabinet Secretary in charge of Finance in Public Debt Management. (6 marks)
(Total: 20 marks)

QUESTION FIVE
(a) Propose FIVE challenges that might be faced by parliamentary oversight committees in executing their mandates.
(5 marks)
(b) Analyse FIVE responsibilities of the Public Finance Management Standing Committee. (5 marks)

(c) In public procurement, accountability is crucial to ensure transparency, fairness and proper management of public funds. Various documents are used throughout the procurement process to ensure that the process is legally compliant and that public funds are used efficiently. These documents facilitate proper record-keeping and decision-making.

With reference to the above statement, describe FIVE accountable documents used in public procurement in your country. (10 marks)
(Total: 20 marks)
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