101+ Free Armenia Auditor Qualification Exam Practice Questions

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Key Facts: Armenia Auditor Qualification Exam Exam

7 Subjects

Required for the auditor qualification (6 for expert accountant)

CAAA qualification programme

50 / 100

Marks needed to pass each subject paper

CAAA examination programme (Board decision N 2-Լ, 2024)

30,000-40,000 AMD

Examination fee per subject paper

CAAA Board decision N 17-Լ, 31 March 2021

20 hours

Minimum CPD per calendar year (80 hours per two consecutive years)

RA Law on Auditing Activity, Article 25(6)

The Armenian auditor qualification is awarded by the Chamber of Auditors and Expert Accountants of Armenia (CAAA) under the oversight of the Public Oversight Board. Candidates pass seven modular subject papers — the first six also qualify an expert accountant — each marked out of 100 with a 50-mark pass, covering ISA auditing, IFRS reporting, Armenian tax law, financial management, management accounting and law. Papers are written in Armenian and combine multiple-choice questions with computational problems; the qualification is granted indefinitely but requires 20 CPD hours a year.

Sample Armenia Auditor Qualification Exam Practice Questions

Try these sample questions to test your Armenia Auditor Qualification Exam exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 101+ question experience with AI tutoring.

1Under ISA 200 (Overall Objectives of the Independent Auditor), what level of assurance is an external auditor required to obtain before expressing an audit opinion on whether financial statements are free from material misstatement?

A.Absolute assurance that the financial statements contain zero errors or fraud

B.Reasonable assurance, which is a high, but not absolute, level of assurance

C.Limited assurance, providing negative assurance similar to a review engagement

D.Moderate assurance based solely on management's written representations

Explanation: ISA 200 states that the auditor's objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Reasonable assurance is a high level of assurance, but it is not absolute due to inherent limitations of an audit (such as the use of testing, inherent limitations of internal control, and persuasive rather than conclusive nature of audit evidence).

2Which of the following is NOT one of the five fundamental ethical principles for professional accountants established by the IESBA Code of Ethics and adopted by the Chamber of Auditors and Expert Accountants of Armenia (CAAA)?

A.Integrity

B.Objectivity

C.Profit Maximization

D.Professional Competence and Due Care

Explanation: The five fundamental principles under the IESBA Code of Ethics (and the CAAA Code of Ethics) are: Integrity, Objectivity, Professional Competence and Due Care, Confidentiality, and Professional Behavior. Profit maximization is a commercial objective of clients, not an ethical principle governing professional accountants and auditors.

3Under ISA 210 (Agreeing the Terms of Audit Engagements), which of the following conditions must be established as a precondition for accepting an audit engagement?

A.The client must guarantee an unmodified audit opinion prior to commencement of field work

B.Management must acknowledge and understand its responsibility for the preparation of financial statements in accordance with the applicable financial reporting framework

C.The auditor must agree to prepare all missing accounting adjusting entries and tax returns free of charge

D.The fee must be structured as a contingent percentage of reported net operating profit

Explanation: Under ISA 210, preconditions for an audit require the auditor to determine whether the financial reporting framework is acceptable and obtain management's agreement that it acknowledges its responsibility for preparing the financial statements, designing internal controls, and providing the auditor with unrestricted access to all relevant information and personnel.

4In the audit risk model (Audit Risk = Inherent Risk × Control Risk × Detection Risk), if the auditor assesses both Inherent Risk and Control Risk as high for inventory valuation, what should the auditor do regarding Detection Risk to maintain acceptable overall audit risk?

A.Set acceptable Detection Risk at a low level by increasing the extent and rigour of substantive procedures on inventory valuation

B.Set acceptable Detection Risk at a high level, because extensive testing of controls has already covered the risk of material misstatement

C.Leave Detection Risk unchanged and instead raise overall materiality so that inventory falls below the testing threshold

D.Reduce Control Risk in the working papers to a low assessment so that the audit risk model returns an acceptable result

Explanation: Audit Risk is the product of the Risk of Material Misstatement (Inherent Risk × Control Risk) and Detection Risk. When RMM is assessed as high, the auditor must set acceptable Detection Risk low to keep overall Audit Risk acceptably low, which means more effective substantive procedures, larger sample sizes and testing closer to year-end.

5Under ISA 320 (Materiality in Planning and Performing an Audit), how is 'Performance Materiality' defined and applied during an audit?

A.The amount set by the auditor at higher than overall materiality to reduce testing documentation

B.The amount or amounts set by the auditor at less than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality

C.The exact maximum fee threshold the audit firm is permitted to charge the client under Armenian law

D.The materiality threshold applied solely to executive compensation disclosures

Explanation: ISA 320 defines Performance Materiality as the amount set by the auditor at less than financial statement materiality to reduce the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole. Performance materiality is typically set at 50% to 75% of overall materiality depending on assessed risk.

6According to ISA 330 (The Auditor's Responses to Assessed Risks), in which circumstance is the auditor MANDATED to perform substantive procedures regardless of the assessed risk of material misstatement?

A.Only when internal controls have been proven 100% effective throughout the entire financial period

B.For each material class of transactions, account balance, and disclosure

C.Only when the client operates as a non-profit foundation in Yerevan

D.Substantive procedures are purely optional if the audit team uses computer-assisted audit techniques

Explanation: ISA 330 paragraph 18 explicitly states that irrespective of the assessed risks of material misstatement, the auditor shall design and perform substantive procedures for each material class of transactions, account balance, and disclosure. This requirement recognizes that the auditor's risk assessment is judgmental and internal controls have inherent limitations.

7Under ISA 500 (Audit Evidence), which of the following sources of audit evidence is generally considered the MOST reliable?

A.Oral explanations provided by the client's Chief Financial Officer during an informal lunch meeting

B.A photocopy of an internal sales invoice generated and filed by the client's sales department

C.Direct written confirmation received by the auditor directly from an independent commercial bank

D.An unsigned internal spreadsheet draft estimating obsolete inventory provisions

Explanation: ISA 500 outlines principles of audit evidence reliability: evidence obtained from independent external sources outside the entity (such as direct bank confirmations) is more reliable than evidence generated internally; documentary evidence is more reliable than oral representations; and original documents are more reliable than photocopies.

8When sending external trade receivables confirmations under ISA 505 (External Confirmations), what is the difference between a positive confirmation request and a negative confirmation request?

A.Positive requests ask the debtor to reply only if they disagree; negative requests ask the debtor to reply in all cases

B.Positive requests ask the confirming party to respond directly to the auditor indicating whether they agree or disagree with the stated balance; negative requests ask for a response only if the confirming party disagrees

C.Positive requests are sent by email; negative requests are sent exclusively via courier delivery

D.Positive requests apply only to related parties; negative requests apply to foreign governments

Explanation: Under ISA 505, a positive confirmation request asks the confirming party to reply directly to the auditor in all cases (agreeing or disagreeing or providing information). A negative confirmation request asks the confirming party to respond only if they disagree with the information provided. Negative confirmations provide substantially less persuasive audit evidence.

9Under ISA 520 (Analytical Procedures), which of the following statements regarding the use of analytical procedures at different stages of an audit is TRUE?

A.Analytical procedures are prohibited during audit planning and risk assessment

B.Analytical procedures are mandatory as risk assessment procedures during planning and as overall review procedures near the end of the audit

C.Analytical procedures can completely replace substantive tests of details for all high-risk accounts

D.Analytical procedures are only used when the auditor suspects criminal tax evasion

Explanation: Under ISA 315 and ISA 520, analytical procedures are mandatory at two stages: 1) during planning as risk assessment procedures to understand the entity and identify unexpected trends/risks, and 2) near the end of the audit to form an overall conclusion on whether the financial statements are consistent with the auditor's understanding. Their use as substantive tests during execution is optional depending on auditor judgment.

10In audit sampling (ISA 530), what is 'sampling risk' and which two erroneous conclusions can it produce in a test of controls?

A.The risk that the auditor selects items judgementally rather than statistically; the resulting errors are bias in selection and bias in evaluation

B.The risk that the auditor's conclusion based on a sample differs from the conclusion that would be reached had the whole population been tested; it produces the risk of over-reliance (concluding controls are more effective than they are) and the risk of under-reliance (concluding they are less effective than they are)

C.The risk that the auditor misinterprets a deviation or applies an unsuitable procedure; it produces false positives and false negatives in the working papers

D.The risk that the population contains a material misstatement before controls are considered; it produces inherent risk and control risk

Explanation: ISA 530 defines sampling risk as the risk that the auditor's conclusion based on a sample differs from the conclusion that would be reached if the entire population were subjected to the same procedure. In a test of controls it produces two erroneous conclusions: the risk of over-reliance, where controls are judged more effective than they actually are, which affects audit effectiveness and can support an inappropriate opinion; and the risk of under-reliance, where controls are judged less effective than they are, which affects audit efficiency by causing unnecessary substantive work.

About the Armenia Auditor Qualification Exam Exam

Free English-language multiple-choice practice bank for the Armenian auditor qualification examination administered by the Chamber of Auditors and Expert Accountants of Armenia (CAAA). Questions are grounded in the Law on Auditing Activity (ՀՕ-283-Ն), the Law on Accounting (ՀՕ-282-Ն), the Law on Regulation and Public Oversight of Accounting and Auditing Activity (ՀՕ-284-Ն), International Standards on Auditing, IFRS and the Tax Code of the Republic of Armenia. The official examinations are sat in Armenian and in writing, so this bank is an English-language study adaptation rather than a format simulation.

Assessment

Seven subject papers sat in Armenian and in writing, at a minimum of two examination sessions per year. Passing the first six subjects qualifies an expert accountant; all seven are required for the auditor qualification. Each paper mixes multiple-choice questions with computational and case problems drawn from IFRS, ISA, Armenian tax law, financial management and law. The topic weightings shown below are this practice bank's own design — the Chamber sets one paper per subject and does not publish cross-subject weightings.

Time Limit

Not published — the Chamber's examination conduct rules set no per-paper time limit

Passing Score

50 or more of the 100 marks available for each subject paper

Exam Fee

30,000 AMD per paper for subjects 1-4 and 40,000 AMD per paper for subjects 5-7 (240,000 AMD for all seven), per Chamber decision N 17-Լ of 31 March 2021. Preparation courses are priced separately. (Chamber of Auditors and Expert Accountants of Armenia (ՀԱՓՀՊ / CAAA), the accredited specialised structure, under the public oversight of the Public Oversight Board (Հանրային վերահսկողության խորհուրդ / ՀՎԽ) alongside the Ministry of Finance)

Armenia Auditor Qualification Exam Exam Content Outline

25%

Audit and Assurance (Աուդիտ և հավաստիացում)

ISA framework, engagement acceptance, risk assessment, materiality, internal control testing, substantive testing, audit evidence and sampling, opinion types, Key Audit Matters, ISQM 1 and IESBA professional ethics.

20%

Preparation of Financial Statements (Ֆինանսական հաշվետվությունների պատրաստում)

IFRS application: PPE (IAS 16), impairment (IAS 36), provisions (IAS 37), intangibles (IAS 38), revenue from contracts (IFRS 15), leases (IFRS 16), financial instruments (IFRS 9), income taxes (IAS 12) and business combinations (IFRS 3).

15%

Tax Legislation of the Republic of Armenia (ՀՀ հարկային օրենսդրություն)

RA Tax Code: profit tax (18%, Article 125), VAT (20%, Article 63) and zero-rating, turnover tax rates (Article 258) and the 115 million AMD threshold, micro-enterprise rules, personal income tax (20%), tax depreciation (Article 121), transfer pricing and limitation periods.

15%

Financial Management (Ֆինանսական կառավարում)

Investment appraisal (NPV, IRR, payback), WACC and CAPM, working capital and the cash conversion cycle, liquidity and leverage ratios, capital structure theory, dividend policy and currency hedging.

10%

Management Accounting (Կառավարչական հաշվառում)

Cost behaviour and the high-low method, CVP analysis, breakeven and margin of safety, marginal versus absorption costing, material and labour variances, overhead volume variance, ABC, zero-based budgeting and relevant costing.

10%

Fundamentals of Financial Accounting (Ֆինանսական հաշվառման հիմունքներ)

Double-entry bookkeeping, adjusting entries and prepayments, bank reconciliation, inventory valuation methods (FIFO, weighted average), depreciation and disposals, expected credit loss allowances, trial balance errors and the indirect cash flow statement.

Fundamentals of Law and Corporate Law (Իրավագիտության հիմունքներ և կորպորատիվ իրավունք)

Law on Auditing Activity (ՀՕ-283-Ն), Law on Accounting (ՀՕ-282-Ն), Law on Regulation and Public Oversight (ՀՕ-284-Ն), audit firm registration conditions, Public Oversight Board powers, statutory audit criteria, auditor confidentiality and AML reporting, and legal forms of business entities.

How to Pass the Armenia Auditor Qualification Exam Exam

What You Need to Know

Passing score: 50 or more of the 100 marks available for each subject paper
Assessment: Seven subject papers sat in Armenian and in writing, at a minimum of two examination sessions per year. Passing the first six subjects qualifies an expert accountant; all seven are required for the auditor qualification. Each paper mixes multiple-choice questions with computational and case problems drawn from IFRS, ISA, Armenian tax law, financial management and law. The topic weightings shown below are this practice bank's own design — the Chamber sets one paper per subject and does not publish cross-subject weightings.
Time limit: Not published — the Chamber's examination conduct rules set no per-paper time limit
Exam fee: 30,000 AMD per paper for subjects 1-4 and 40,000 AMD per paper for subjects 5-7 (240,000 AMD for all seven), per Chamber decision N 17-Լ of 31 March 2021. Preparation courses are priced separately.

Keys to Passing

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Armenia Auditor Qualification Exam Study Tips from Top Performers

1Master International Standards on Auditing: focus on ISA 315 (risk assessment), ISA 330 (responses to assessed risks), ISA 700/705/706 (opinion types) and ISA 701 (Key Audit Matters).

2Know the current Armenian tax figures rather than older ones: profit tax 18%, VAT 20%, personal income tax 20%, the 115 million AMD VAT/turnover-tax threshold, and the turnover tax rates reset in 2025 (trading 10%, production 7%, catering 12%).

3Practise IFRS computations under time pressure: IFRS 16 lease liability and right-of-use amortisation, IAS 36 impairment, IAS 12 deferred tax on temporary differences and IFRS 3 goodwill.

4Work capital budgeting and variance problems methodically — NPV, IRR, WACC, CAPM, and material price/usage and labour rate/efficiency variances all recur in the Financial Management and Management Accounting papers.

5Understand the IESBA threats framework — self-interest, self-review, advocacy, familiarity and intimidation — and the Armenian rules layered on top of it, including audit firm registration conditions and mandatory AML reporting to the Financial Monitoring Center.

6Download the Chamber's published past papers and answers from the Շտեմարան page; they are the only authentic guide to how the multiple-choice and written halves of each paper are balanced.

Frequently Asked Questions

What is the Armenia Auditor Qualification Examination?

It is the qualification examination programme run by the Chamber of Auditors and Expert Accountants of Armenia (CAAA / ՀԱՓՀՊ), the only accredited professional organisation for the profession since 2020. The Chamber holds the delegated state function of awarding the auditor and expert accountant qualifications, under the public oversight of the Public Oversight Board attached to the Ministry of Finance. The Chamber runs at least two examination sessions a year.

What is the difference between the Expert Accountant and Auditor qualifications in Armenia?

They share one examination programme. Passing the first six subjects qualifies an expert accountant (փորձագետ հաշվապահ); passing all seven — the seventh being Audit and Assurance — qualifies an auditor (աուդիտոր). Both also require higher education and the statutory work experience before the qualification is granted.

What are the seven qualification subjects?

Under the examination programme approved by the Chamber's Board on 7 February 2024 (decision N 2-Լ) the subjects are: 1. Fundamentals of Financial Accounting, 2. Management Accounting, 3. Fundamentals of Law and Corporate Law, 4. Tax Legislation of the Republic of Armenia, 5. Financial Management, 6. Preparation of Financial Statements, and 7. Audit and Assurance. Older CAAA pages still list the earlier titles for subjects 2, 3, 5 and 7.

What format do the official papers take, and how does this practice bank relate to them?

The Chamber's conduct rules require the examinations to be held in Armenian and in writing. Each subject paper is marked out of 100 and, under the programme's assessment method, combines multiple-choice questions worth at most 50% of the marks with written computational and case problems. This OpenExamPrep bank is an English-language multiple-choice study adaptation of that syllabus — it is not an official translation, not an official practice paper, and it does not simulate the written-problem half of the exam. Use it to drill the underlying IFRS, ISA, Armenian tax and financial management content, then work the Chamber's own published past papers for the written sections.

What is the passing score, and what does an exam sitting cost?

Each subject paper is marked out of 100 and is passed with 50 marks or more. Chamber decision N 17-Լ sets the examination fee at 30,000 AMD for each of subjects 1-4 and 40,000 AMD for each of subjects 5-7 — 240,000 AMD for all seven. Preparation courses are charged separately.

How long is the qualification valid, and what CPD is required?

Article 28 of the Law on Auditing Activity grants the qualification for an indefinite period. Article 25(6) then requires each auditor, from the year after the qualification is granted, to complete continuing professional development of at least 20 hours per calendar year and at least 80 hours across each two consecutive years. Failure to meet that requirement is a statutory ground for cancelling the qualification.

Do the Chamber's exam results give any international exemptions?

Yes. ACCA accredited the CAAA Qualification Scheme, so passing the Chamber's subjects maps to exemptions from the corresponding ACCA papers — for example Tax Legislation of the RA maps to Taxation and Audit and Internal Control maps to Audit and Assurance. Check the current exemption letter published on the Chamber's documents page, as accreditation is granted for fixed cohort periods.