Auditor Qualifying Exam (Moldova) / Examenul de calificare a auditorilor (CSPA)

Under ISA 200 (Overall Objectives of the Independent Auditor), what level of assurance is an external auditor required to obtain before expressing an opinion on statutory financial statements?

• AAbsolute assurance that the financial statements are entirely free from any error or fraud
• BReasonable assurance, which represents a high, but not absolute, level of assurance
• CLimited assurance, providing negative assurance that no material misstatements came to li…
• DConditional assurance dependent on management's full indemnity and signed representation…

According to Moldovan Law No. 271/2017 on the Audit of Financial Statements, which public body is legally empowered to oversee the audit profession and maintain the Public Register of Auditors in Moldova?

• AThe State Tax Service (Serviciul Fiscal de Stat)
• BThe Public Audit Oversight Council (Consiliul de Supraveghere Publică a Auditului — CSPA)
• CThe National Bank of Moldova (Banca Națională a Moldovei)
• DThe Chamber of Commerce and Industry of the Republic of Moldova (Camera de Comerț și Indu…

Which of the following represents the five fundamental ethical principles codified in the IESBA International Code of Ethics and enforced by CSPA in the Republic of Moldova?

• AIntegrity, Objectivity, Professional Competence and Due Care, Confidentiality, and Profes…
• BIndependence, Profitability, Prudence, Transparency, and Due Diligence
• CFairness, Materiality, Professional Skepticism, Consistency, and Neutrality
• DObjectivity, Public Responsibility, Compliance, Accuracy, and Conservatism

An audit partner's spouse is appointed as the Chief Financial Officer (CFO) of an entity audited by the partner's firm. According to the IESBA Code of Ethics, which threats to independence arise?

• ASelf-review threat
• BFamiliarity threat and self-interest threat
• CAdvocacy threat
• DIntimidation threat

Under ISA 210 (Agreeing the Terms of Audit Engagements), which condition must the auditor verify as a mandatory precondition for an audit before accepting an engagement?

• AManagement has agreed to provide an unqualified audit opinion guarantee
• BThe financial reporting framework to be applied in the preparation of the financial state…
• CThe entity has achieved positive net profit and cash flow from operations during the fisc…
• DAll prior year audit recommendations have been fully implemented by the internal audit de…

Under ISQM 1 (International Standard on Quality Management 1) and ISA 220 (Revised), who bears ultimate responsibility for managing and achieving quality on an individual audit engagement?

• AThe Engagement Quality Reviewer (EQR)
• BThe Engagement Partner
• CThe external inspector from CSPA
• DThe client's Audit Committee

Under Moldova's Law No. 271/2017 on the Audit of Financial Statements, what is the maximum period after the date of the auditor's report for completing the assembly of the audit file?

• A15 calendar days
• B60 calendar days
• C90 calendar days
• D180 calendar days

Under ISA 240, which three conditions make up the 'fraud triangle' that the auditor evaluates when identifying and assessing fraud risk factors?

• ACollusion, Concealment, and Conversion
• BIncentive or pressure, Opportunity, and Attitude or rationalization
• CMateriality, Inherent risk, and Control deficiency
• DComplexity, Volatility, and Subjectivity

Under ISA 250 (Consideration of Laws and Regulations in an Audit of Financial Statements), what is the auditor's specific responsibility regarding laws and regulations that do NOT directly determine amounts in the financial statements, such as environmental or occupational safety laws?

• APerform detailed substantive testing on every operational compliance report and physical…
• BPerform specified audit procedures to help identify non-compliance that may have a materi…
• CGuarantee absolute legal compliance and issue an official certificate of legal conformity
• DIgnore these laws entirely because external auditors are strictly concerned with bookkeep…

What is the primary difference between the overall audit strategy and the detailed audit plan according to ISA 300 (Planning an Audit of Financial Statements)?

• AThe strategy sets the scope, timing, and direction of the audit; the plan details the nat…
• BThe strategy is prepared by the client's internal auditors; the plan is prepared by the e…
• CThe strategy is finalized after field testing is complete; the plan is created before eng…
• DThe strategy contains exact monetary sample sizes; the plan contains only high-level conc…

Under ISA 315 (Revised 2019), when an auditor identifies a Significant Risk of material misstatement, what is the mandatory requirement regarding the entity's related controls?

• AThe auditor may completely bypass the controls and rely exclusively on analytical procedu…
• BThe auditor must identify the controls that address the risk and evaluate whether they ha…
• CThe auditor must assume management has committed criminal fraud and withdraw from the eng…
• DThe auditor must test the operating effectiveness of the controls across a minimum 5-year…

An auditor determines overall materiality for a manufacturing client's financial statements as 1,000,000 MDL. In accordance with ISA 320, how should performance materiality typically be set?

• AHigher than overall materiality (e.g., 1,500,000 MDL) to allow a margin for unexpected di…
• BLower than overall materiality to reduce to an appropriately low level the probability th…
• CExactly equal to overall materiality (1,000,000 MDL) to maintain linear mathematical pari…
• DAt exactly 5% of overall materiality (50,000 MDL), because ISA 320 mandates that fixed pe…

Under ISA 330 (The Auditor's Responses to Assessed Risks), when an auditor intends to rely on the operating effectiveness of internal controls over a significant risk, what is the rule regarding the timing of testing those controls?

• AControls over significant risks must be tested in the current period and cannot rely on e…
• BControls can be tested once every three years under the rotational testing rule regardles…
• CControls need only be tested if substantive procedures reveal material monetary journal e…
• DControls over significant risks are tested solely through management self-assessment ques…

Under ISA 500 (Audit Evidence), which of the following types of audit evidence is generally considered the most reliable?

• AOral representations made by the entity's sales director regarding customer payment inten…
• BA photocopy of an internally generated warehouse goods dispatch note
• CAn original bank confirmation letter received directly by the auditor from an independent…
• DA spreadsheet schedule prepared by the client's internal bookkeeper summarizing supplier…

If inventory is material to the financial statements, what is the auditor's primary responsibility under ISA 501 regarding the physical inventory count?

• APhysically count 100% of all warehouse inventory items on behalf of client management
• BAttend the physical inventory counting unless practically impracticable, observe count pr…
• CRely completely on the year-end perpetual inventory ledger without visiting the warehouse…
• DDelegate the physical attendance to the client's internal security staff and review their…

Under ISA 505 (External Confirmations), what action must an auditor take when management refuses to allow the auditor to send an external confirmation request to a key debtor?

• AImmediately issue an adverse audit opinion without further investigation
• BInquire as to management's reasons, seek audit evidence regarding validity and reasonable…
• CAgree to the refusal immediately and treat the debtor balance as fully confirmed
• DFile a criminal complaint with the National Anticorruption Center within 24 hours

Under ISA 520 (Analytical Procedures), what must the auditor establish BEFORE performing substantive analytical procedures to ensure the results are reliable?

• AAn independent expectation of the recorded amount or ratio and evaluate whether the thres…
• BA written guarantee from the CFO that the analytical variance will not exceed 1%
• CA complete reconciliation of every individual transaction supporting the account balance
• DAn advance confirmation that no ledger adjustments will be recorded in the final quarter

In the context of audit sampling under ISA 530, what constitutes 'sampling risk'?

• AThe risk that the auditor reaches an incorrect conclusion because the sample selected is…
• BThe risk that the auditor applies inappropriate audit procedures or misinterprets evidence
• CThe risk that the client's internal servers fail during sample extraction
• DThe risk that statistical software licenses expire during field testing

Under ISA 540 (Revised) on Auditing Accounting Estimates and Related Disclosures, which of the following is considered an inherent risk factor that increases estimation uncertainty?

• AThe use of high-volume standardized automated barcode scans for retail grocery cash recei…
• BThe degree of subjectivity, complexity, and susceptibility to management bias in selectin…
• CThe existence of fixed statutory tax rates published directly in the Moldovan Fiscal Code
• DThe contractual certainty of fixed interest rates on government treasury bonds held to ma…

A major debtor of an audited entity went bankrupt on February 15 due to deteriorating financial health that existed prior to December 31. The financial statements for the year ended December 31 have not yet been approved or issued. Under ISA 560 and accounting standards, how should this event be treated?

• AAs an adjusting subsequent event requiring an adjustment to the trade receivables balance…
• BAs a non-adjusting event requiring only an explanatory note disclosure in the subsequent…
• CAs an irrelevant event because it occurred after the December 31 balance sheet cutoff date
• DAs a reason to retroactively cancel all revenue recognized from that customer over the pa…

An audited company faces significant debt refinancing difficulties, but management has made adequate and transparent note disclosures regarding the material uncertainty. If the auditor concludes the going concern basis remains appropriate, what audit opinion and reporting structure must be issued under ISA 570 (Revised)?

• AAn unmodified (clean) opinion with a dedicated section titled 'Material Uncertainty Relat…
• BAn adverse audit opinion because any going concern uncertainty invalidates the entire bal…
• CA qualified opinion with an 'Except for Going Concern' limitation paragraph
• DA disclaimer of opinion stating the auditor refuses to express an opinion whenever liabil…

In a standard unmodified audit report issued under ISA 700 (Revised), where must the 'Opinion' section appear?

• AAt the very beginning of the auditor's report, typically as the first section
• BAt the end of the report, immediately following the auditor's signature and address
• CInside the management letter as a confidential private appendix
• DInside the notes to the financial statements alongside the accounting policy summaries

When ISA 701 applies, what constitutes a Key Audit Matter (KAM) communicated in the auditor's report?

• AMatters that, in the auditor's professional judgment, were of most significance in the au…
• BAny confidential personnel dispute occurring within the client's internal sales department
• CA list of all immaterial rounding discrepancies detected during petty cash vouchers testi…
• DAny dispute between the auditor and management that resulted in an invoice discount

An auditor detects an uncorrected misstatement regarding revenue recognition that is material, but its effects are confined to specific line items and are NOT pervasive to the financial statements as a whole. According to ISA 705 (Revised), what type of audit opinion should be expressed?

• AUnmodified opinion
• BQualified opinion ('Except for...')
• CAdverse opinion
• DDisclaimer of opinion

What is the primary purpose of an 'Emphasis of Matter' paragraph in an independent auditor's report under ISA 706 (Revised)?

• ATo modify the audit opinion because the auditor disagrees with the accounting treatment
• BTo draw users' attention to a matter appropriately presented or disclosed in the financia…
• CTo disclose information that management deliberately omitted from the financial statements
• DTo announce the replacement of the engagement partner for the upcoming fiscal year

Under Moldovan Law No. 287/2017 on Accounting and Financial Reporting, which categories of entities are legally mandated to prepare financial statements in strict accordance with International Financial Reporting Standards (IFRS / SIRF)?

• AMicro-entities and individual entrepreneurs
• BPublic interest entities (entități de interes public), including commercial banks, insura…
• CAll small and medium enterprises registered in the Republic of Moldova
• DOnly non-governmental charitable foundations

Under National Accounting Standard (SNC) 'Imobilizări necorporale și corporale', which of the following costs incurred in acquiring a piece of manufacturing machinery must be capitalized into the asset's initial cost?

• ASite preparation costs, initial delivery and handling costs, and professional installatio…
• BCosts of conducting an opening ceremony party to inaugurate the new manufacturing facility
• CGeneral administrative overheads of the head office incurred during the acquisition month
• DOperating losses incurred during initial low-volume production before reaching full capac…

A Moldovan enterprise acquires equipment on January 1, 2024, for 240,000 MDL. The estimated useful life is 5 years, and the estimated residual value is 40,000 MDL. Using the straight-line depreciation method under SNC, what is the carrying amount of the equipment on December 31, 2025, and the annual depreciation expense?

• AAnnual depreciation is 40,000 MDL; carrying amount at December 31, 2025 is 160,000 MDL
• BAnnual depreciation is 48,000 MDL; carrying amount at December 31, 2025 is 144,000 MDL
• CAnnual depreciation is 40,000 MDL; carrying amount at December 31, 2025 is 200,000 MDL
• DAnnual depreciation is 50,000 MDL; carrying amount at December 31, 2025 is 190,000 MDL

Under SNC 'Stocuri' and IAS 2, how must inventories be valued at the balance sheet date, and what does Net Realizable Value (NRV) represent?

• AAt historical cost without exception, ignoring current market price fluctuations
• BAt the lower of cost and net realizable value (NRV), where NRV is the estimated selling p…
• CAt fair value plus anticipated profit margins expected upon future sale
• DAt replacement cost as determined by current replacement purchase catalogs

A trading company in Chisinau has the following inventory movements in March: Beginning inventory: 100 units at 50 MDL. Purchase on March 10: 200 units at 60 MDL. Sale on March 15: 150 units. Purchase on March 25: 100 units at 70 MDL. Under the FIFO (First-In, First-Out) method permitted by SNC, what is the cost of goods sold (COGS) for March and the value of ending inventory?

• ACOGS is 8,000 MDL; Ending inventory is 16,000 MDL
• BCOGS is 9,000 MDL; Ending inventory is 15,000 MDL
• CCOGS is 8,500 MDL; Ending inventory is 15,500 MDL
• DCOGS is 10,000 MDL; Ending inventory is 14,000 MDL

Under IFRS 15 (Revenue from Contracts with Customers), what is the core principle and the 5-step model for revenue recognition?

• ARecognize revenue when cash is received into the bank account across a 5-stage liquidity…
• BRecognize revenue to depict the transfer of promised goods or services to customers in an…
• CRecognize revenue when production of goods is completed in the factory prior to shipment
• DRecognize revenue equally over 12 calendar months regardless of delivery dates or contrac…

Under SNC 'Creanțe și investiții financiare', how should an enterprise account for trade receivables when there is objective evidence that an individual customer cannot pay their outstanding balance?

• AContinue carrying the receivable at full face value until legal liquidation of the debtor…
• BRecord an impairment loss (allowance for doubtful accounts) recognized as an operating ex…
• CDirectly reduce share capital to absorb the anticipated credit loss without touching the…
• DTransfer the receivable to intangible assets under goodwill

Under SNC 'Provizioane, pasive contingente și active contingente' and IAS 37, which three criteria MUST be satisfied simultaneously to recognize a provision as a balance sheet liability?

• APresent obligation from a past event, probable outflow of resources embodying economic be…
• BPossible obligation, remote outflow of cash, and a board resolution approving dividend pa…
• CFuture operational commitment, discretionary management intention, and an unexecuted cont…
• DWritten bank guarantee, zero interest rate, and a signed notarized contract

A home appliance manufacturer sells 10,000 units with a 1-year product warranty. Past experience shows that 85% of units have no defects, 10% have minor defects costing 200 MDL each to repair, and 5% have major defects costing 800 MDL each to repair. Under IAS 37 expected value principles, what is the required warranty provision?

• A600,000 MDL
• B1,000,000 MDL
• C400,000 MDL
• D200,000 MDL

Under IFRS 16 (Leases), how must a lessee recognize an operating lease of commercial premises with a 5-year non-cancellable term and annual lease payments of 100,000 MDL at commencement date?

• ARecognize an annual operating rental expense of 100,000 MDL on a straight-line basis with…
• BRecognize a Right-of-Use (ROU) asset and a corresponding lease liability measured at the…
• CRecognize the leased building as freehold property under equity reserves
• DDisclose the entire 500,000 MDL as an unrecorded contingent liability in note disclosures…

Under IAS 12 (Income Taxes), what causes a Deferred Tax Liability (DTL) to arise?

• ATaxable temporary differences, where the carrying amount of an asset exceeds its tax base
• BDeductible temporary differences, where the carrying amount of a liability exceeds its ta…
• CA permanent non-deductible tax fine imposed by the State Tax Service
• DAn unexpected decline in the corporate tax rate enacted by parliament

An enterprise in Moldova purchases equipment for 500,000 MDL on January 1, 2024. At December 31, 2024, its accounting carrying amount is 400,000 MDL and its tax base is 375,000 MDL. Assuming a 12% corporate income tax rate, what is the deferred tax position?

• ADeferred Tax Liability of 3,000 MDL
• BDeferred Tax Asset of 3,000 MDL
• CDeferred Tax Liability of 25,000 MDL
• DZero deferred tax because accounting and tax depreciation will equalize over 5 years

Under Moldovan Law No. 135/2007 on Limited Liability Companies (SRL), what is the statutory requirement regarding the formation of a legal reserve fund (fondul de rezervă) from net profits?

• AAn SRL must allocate at least 5% of its annual net profit to the reserve fund until the f…
• BAn SRL is strictly prohibited from forming any reserve fund
• CAn SRL must allocate 100% of all profits to the state budget
• DAn SRL must establish a reserve fund equal to 50% of total annual gross revenue

In a statement of cash flows prepared under IAS 7 / SNC, in which section must cash proceeds from issuing new ordinary shares and cash paid to repay bank loan principal be reported?

• AOperating activities
• BInvesting activities
• CFinancing activities
• DExtraordinary activities

An enterprise reports net profit of 500,000 MDL. During the period: depreciation expense was 80,000 MDL; trade receivables increased by 30,000 MDL; inventories decreased by 20,000 MDL; and trade payables increased by 40,000 MDL. Using the indirect method, what is the net cash flow from operating activities?

• A610,000 MDL
• B570,000 MDL
• C490,000 MDL
• D650,000 MDL

Under IAS 36 (Impairment of Assets), how is an asset's Recoverable Amount defined?

• AThe lower of fair value less costs of disposal and historical cost
• BThe higher of fair value less costs of disposal and value in use
• CThe undiscounted total of all future revenues expected from the asset
• DThe original purchase invoice price minus statutory tax depreciation

Under IFRS 9 (Financial Instruments), what two tests determine whether a financial asset is classified and measured at Amortised Cost?

• AThe business model test (holding asset to collect contractual cash flows) and the SPPI te…
• BThe liquidity test and the currency volatility test
• CThe management profitability target test and the auditor consensus test
• DThe market capitalization test and the dividend yield ratio test

Under IAS 8 / SNC, how must a change in accounting estimate (such as revising the useful life or residual value of a machine) be accounted for?

• ARetrospectively, by restating prior years' comparative financial statements and adjusting…
• BProspectively, by recognizing the effect in the current period and future periods affecte…
• CDirectly as an extraordinary deduction against common share capital
• DBy canceling all prior depreciation journal entries and reissuing previous annual reports

Under IFRS 10 (Consolidated Financial Statements), which of the following defines the concept of 'control' requiring an investor to consolidate an investee?

• AHolding more than 10% of debt debentures without voting power
• BAn investor controls an investee when it is exposed, or has rights, to variable returns f…
• CHaving an informal non-binding verbal agreement to advise the board of directors
• DHolding common supplier commercial trade credit terms with the investee