TheorySOCPA Saudi CPA Exam Prep Study Guide
Study for the SOCPA Saudi CPA Exam Prep with exam topics, practice questions, a free PDF, video walkthrough and timed mock exam links.
How to study for SOCPA Saudi CPA Exam Prep
- Read the topic list so you know what the exam is likely to cover.
- Answer the free practice questions and read every explanation.
- Download the PDF for offline review.
- Use timed mock exams when your untimed practice feels comfortable.
Topics to review
- The core topics and terminology you'll be tested on
- Rules, standards and best-practice procedures
- Real-world scenarios and how to respond
- Common mistakes and how to avoid them
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Q1An audit partner owns a significant number of shares in the audit client. Which threat to independence does this create?
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✓ Correct answer: Self-interest threat
Owning shares in an audit client creates a self-interest threat because the auditor has a financial stake in the client's performance, which could impair independence and objectivity.
Q2Under IAS 1, when an entity reclassifies amounts previously recognised in OCI to profit or loss, this transfer is called:
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✓ Correct answer: A reclassification adjustment (recycling)
IAS 1.92: a reclassification adjustment is the amount reclassified to P&L in the current or prior period that was previously recognised in OCI.
Q3Under IFRS 5, if the criteria for holding-for-sale classification are met after the balance sheet date but before the financial statements are authorised for issue:
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✓ Correct answer: The prior period is restated
IFRS 5.12: if criteria are met after the reporting period but before the financial statements are authorised, classification as held for sale does not apply to the statements being presented.
Q4Under ZATCA regulations, the Automatic Exchange of Information (AEOI) for Saudi Arabia includes compliance with:
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✓ Correct answer: Only the OECD Transfer Pricing Guidelines
Saudi Arabia adopted the OECD Common Reporting Standard (CRS) and is committed to automatic exchange of financial account information with other CRS participating jurisdictions.
Q5Under ISA 720, if the auditor identifies a material inconsistency between the other information and the financial statements, and the financial statements are correct, the auditor shall:
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✓ Correct answer: Ask management to correct the other information, and if not corrected, include an 'other information' section in the audit report describing the inconsistency
ISA 720.16-17: if other information is materially inconsistent (and the financial statements are correct), the auditor requests management to correct it; if not corrected, the auditor describes the inconsistency in the audit report.
Q6Under IFRS 3, the identifiable assets acquired and liabilities assumed in a business combination are measured at:
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✓ Correct answer: Historical cost
IFRS 3.18: identifiable assets acquired and liabilities assumed are measured at their acquisition-date fair values.
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