SOCPA Saudi CPA Exam Prep practice questions and answers 2026. Tap an option to test yourself — you'll see the correct answer and a plain-English explanation for every question. Free, no login.
Q11IFRS 6 is a temporary standard with limited scope. It applies to:
✓ Correct answer: D. Expenditures incurred by an entity in connection with the search for mineral resources before technical feasibility and commercial viability is established
IFRS 6.1: IFRS 6 applies to exploration for and evaluation of mineral resources — specifically E&E expenditures before the technical feasibility and commercial viability of extracting a mineral resource is demonstrable.
Q12What is the minimum passing score required in each subject of the SOCPA Fellowship exam?
✓ Correct answer: A. 60%
Candidates must achieve at least 60% in each subject of the SOCPA Fellowship exam to pass. The exam has a maximum duration of 20 hours.
Q13Under ISA 560, if an event that would have affected the financial statements had it been known at the audit report date occurs after that date and before the financial statements are issued, and the auditor's report has already been issued, the auditor shall:
✓ Correct answer: C. Issue a new audit report on all matters
ISA 560.16: after the audit report has been issued, if a material event is discovered before the financial statements are issued, the auditor works with management to amend the statements and issues a new audit report.
Q14An audit firm prepared the financial statements of a client and is now performing the audit of those same statements. Which threat to independence does this create?
✓ Correct answer: D. Self-review threat
When an auditor reviews or audits work they previously prepared (such as financial statements), this creates a self-review threat. The auditor may be less likely to critically evaluate their own prior work.
Q15Under ISA 610, if the internal audit function is not sufficiently independent, objective, or competent to meet the external auditor's standards, the external auditor:
✓ Correct answer: C. Must report to management
ISA 610.14: the external auditor may only use internal audit work if the function has adequate technical training, proficiency, and due professional care, and is sufficiently objective.
Q16Under ISA 250 Revised (2017), the auditor's responsibilities regarding non-compliance with laws and regulations are primarily to:
✓ Correct answer: A. Ensure the entity complies with all laws
ISA 250.6 (revised): the auditor's responsibility is to identify non-compliance that may materially affect the financial statements — not to certify legal compliance.
Q17Under ISA 510, when a predecessor auditor's opinion on opening balances was modified, the current period auditor shall:
✓ Correct answer: D. Evaluate whether the matter causing the modification has been resolved and its effect on the current period
ISA 510.10: the current auditor evaluates whether the prior modification matters are resolved and their implications for the current period audit.
Q18Under Saudi Investment Law (Foreign Investment Law 2000 as amended), the Foreign Investment license allows foreign investors to:
✓ Correct answer: A. Invest in all sectors without restriction
Saudi Foreign Investment Law: licensed foreign investors may invest in non-restricted sectors and benefit from guarantees, incentives, and equal treatment with Saudi investors.
Q19Under IAS 23, when funds borrowed for specific purpose remain temporarily uninvested, the entity:
✓ Correct answer: A. Capitalises only the portion used
IAS 23.12: when excess borrowed funds are temporarily invested before being expended, investment income earned is deducted from the amount of capitalised borrowing costs.
Q20Under IFRS 16, the interest expense on the lease liability is:
✓ Correct answer: C. Recognised in the revaluation reserve
IFRS 16.47: the interest expense on the lease liability is recognised in P&L as a finance cost.
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