Free Practice Questions for ESAA Final Level Exam

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card

100+ Questions

100% Free

Loading practice questions...

Same family resources

Explore More Egyptian Society of Accountants & Auditors (ESAA) Qualifications

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

ESAA Intermediate Level Exam (المستوى المتوسط)

Practice Questions100 questions

Exam Review

Key Facts: ESAA Final Level Exam Exam

5 Subjects

Advanced qualifying modules covering financial leadership and audit practice

ESAA Final Syllabus (esaa.org.eg)

4 Hours

Length of the Financial Accounting and Auditing papers; the other three run 3 hours

ESAA June 2026 exam timetable (esaa.org.eg)

3 Years

Total registered practical training required for full membership

ESAA Qualifying Regulations (esaa.org.eg)

5 Years

Window from passing the intermediate level to sit the final papers

ESAA Qualifying Regulations (esaa.org.eg)

Joint-Stock

Full statutory audit signing authority for corporations upon passing

Egyptian Companies Law No. 159/1981

IFAC Member

ESAA is Egypt's representative member in IFAC since 1977

International Federation of Accountants (ifac.org)

EAS & FRA

Aligned with Egyptian Accounting Standards and FRA Corporate Governance Code

Financial Regulatory Authority (fra.gov.eg)

100 MCQs

Original English-language practice study adaptation

OpenExamPrep Practice Bank

Achieve full ESAA membership with 100 practice MCQs for the ESAA Final Level exam. Covers group consolidations (EAS 42), business combinations (EAS 29), advanced auditing (ISQM/ISA), transfer pricing, corporate valuation, and the FRA governance code. The official exam is a computer-based Arabic paper set that is largely essay-based; this bank is an English-language MCQ study adaptation, not an official-format simulation.

Sample ESAA Final Level Exam Practice Questions

Try these sample questions to review concepts for the ESAA Final Level Exam exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Egyptian Accounting Standard EAS 42 (Consolidated Financial Statements), what three cumulative criteria establish whether an investor controls an investee?

A.Ownership of more than fifty percent of the voting shares, representation on the board of directors, and operational control of daily bank accounts

B.Power over the investee, exposure or rights to variable returns from its involvement, and the ability to use its power to affect the amount of its returns

C.Statutory approval from the Financial Regulatory Authority, commercial syndicate registration, and execution of a joint management agreement

D.Execution of an irrevocable power of attorney, consolidation of payroll systems, and cross-guarantee of all debt obligations

Explanation: EAS 42 (aligned with IFRS 10) defines control based on three core elements: (1) power over the investee arising from existing rights that give current ability to direct relevant activities; (2) exposure, or rights, to variable returns from involvement with the investee; and (3) the ability to use power over the investee to affect the amount of the investor's returns.

2Under EAS 29 (Business Combinations), how must the acquirer measure the identifiable assets acquired and liabilities assumed in a business combination on the acquisition date?

A.At the acquirer's management replacement cost estimates determined by the board of directors

B.At the previous book values reported in the acquiree's historical financial statements

C.At historical cost adjusted for accumulated inflation based on the official Egyptian Consumer Price Index

D.At their acquisition-date fair values (with limited standard-specified exceptions such as deferred taxes and employee benefits)

Explanation: Under EAS 29 (aligned with IFRS 3), the acquisition method requires the acquirer to recognize and measure identifiable assets acquired, liabilities assumed, and any non-controlling interest at their acquisition-date fair values, with standard exceptions such as deferred tax assets/liabilities (EAS 24) and employee benefits (EAS 38).

3Under EAS 47 (Financial Instruments), what are the two required classification tests that debt instruments must pass to be measured at Amortized Cost?

A.The Business Model test (held to collect contractual cash flows) and the SPPI test (contractual terms give rise to cash flows that are solely payments of principal and interest)

B.The Liquidity test (listed on the EGX) and the Credit Rating test (investment grade rated by an authorized agency)

C.The Currency test (denominated exclusively in Egyptian Pounds) and the Maturity test (term exceeding twelve months)

D.The Fair Value Hierarchy test and the Capital Adequacy test mandated by the Central Bank of Egypt

Explanation: Under EAS 47 (aligned with IFRS 9), a financial asset that is a debt instrument is measured at amortized cost only if both conditions are met: (1) the asset is held within a business model whose objective is to hold assets to collect contractual cash flows (Business Model Test); and (2) the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI Test).

4In translating the financial statements of a foreign subsidiary into the presentation currency of an Egyptian parent under EAS 13 (The Effects of Changes in Foreign Exchange Rates), where are the resulting foreign currency translation exchange differences recognized?

A.Deferred on the statement of financial position as an intangible foreign exchange asset

B.Directly in profit or loss as realized operating foreign exchange gains or losses

C.In Other Comprehensive Income (OCI) and accumulated in a separate foreign currency translation reserve within equity

D.Charged against the statutory legal reserve under Companies Law No. 159 of 1981

Explanation: Under EAS 13, when translating the results and financial position of a foreign operation whose functional currency is not the presentation currency of the parent (using the closing rate for balance sheet items and transaction/average rates for income and expenses), all resulting exchange differences are recognized in Other Comprehensive Income (OCI) and accumulated in a separate component of equity until the disposal of the foreign operation.

5Under EAS 24 (Income Taxes), what causes a Taxable Temporary Difference that results in the recognition of a Deferred Tax Liability?

A.When the carrying amount of an asset is less than its tax base

B.When the carrying amount of an asset exceeds its tax base, or the carrying amount of a liability is less than its tax base

C.Permanent disallowance of criminal penalties and traffic fines under Article 24 of Law 91/2005

D.Direct tax deductions granted on donations to Egyptian government entities under Article 23

Explanation: Under EAS 24, a taxable temporary difference is a temporary difference that will result in taxable amounts in determining taxable profit of future periods when the carrying amount of the asset or liability is recovered or settled. It arises when an asset's carrying amount exceeds its tax base (e.g. accelerated tax depreciation) or when a liability's carrying amount is less than its tax base.

6Under EAS 18 (Investments in Associates and Joint Ventures), how is an investment in an associate accounted for in the consolidated financial statements of the investor?

A.Using the Equity Method of accounting

B.Full line-by-line consolidation of assets, liabilities, income, and expenses

C.Proportionate consolidation of each asset and liability account

D.At historical cost less impairment without recognizing the investor's share of post-acquisition profits

Explanation: Under EAS 18, an entity with significant influence (typically 20% to 50% voting power) over an associate must account for its investment using the Equity Method in its consolidated financial statements: initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor's share of the associate's net assets.

7On 1 January 2025, Cairo Industrial Holdings acquired 80% of the equity shares of Delta Manufacturing for cash consideration of EGP 48,000,000. At acquisition date, Delta's identifiable net assets had a book value of EGP 45,000,000 and a fair value of EGP 52,000,000. Cairo Industrial elects to measure the Non-Controlling Interest (NCI) at its proportionate share of Delta's identifiable net assets. What is the goodwill recognized under EAS 29?

A.EGP 13,600,000

B.EGP 12,000,000

C.EGP 8,000,000

D.EGP 6,400,000

Explanation: Identifiable net assets at fair value = EGP 52,000,000. NCI at proportionate share = 20% * EGP 52,000,000 = EGP 10,400,000. Consideration transferred = EGP 48,000,000. Goodwill = Consideration transferred (EGP 48,000,000) + NCI (EGP 10,400,000) - Fair value of net identifiable assets (EGP 52,000,000) = EGP 58,400,000 - EGP 52,000,000 = EGP 6,400,000. (Alternatively: 80% * 52,000,000 = 41,600,000 share of net assets; Goodwill = 48,000,000 - 41,600,000 = EGP 6,400,000).

8Parent Nile Corp owns 75% of Subsidiary Giza Ltd. During 2025, Giza sold goods costing EGP 1,200,000 to Nile Corp for EGP 1,600,000 (upstream transaction, markup of 33.33% on cost / 25% gross profit margin). At 31 December 2025, 40% of these goods remain unsold in Nile Corp's ending warehouse inventory. How much unrealized intercompany profit must be eliminated in consolidation, and how is it allocated?

A.Eliminate EGP 400,000 total intercompany profit entirely from ending inventory

B.Eliminate EGP 160,000 from consolidated inventory, allocating 100% of the reduction exclusively to Parent equity

C.Eliminate EGP 160,000 from consolidated inventory, allocating EGP 120,000 to Parent and EGP 40,000 to Non-Controlling Interest

D.Eliminate EGP 64,000 from consolidated inventory based strictly on parent ownership proportion

Explanation: Total intercompany profit realized by seller (Giza) = EGP 1,600,000 - EGP 1,200,000 = EGP 400,000. Portion remaining in ending inventory = 40% * EGP 400,000 = EGP 160,000 unrealized profit. Because this is an upstream sale (subsidiary sells to parent), the elimination is made against the subsidiary's profit and therefore shared between Parent (75% * 160,000 = EGP 120,000) and NCI (25% * 160,000 = EGP 40,000).

9Under EAS 47 (Financial Instruments), what is the accounting treatment for financial assets categorized at Fair Value Through Other Comprehensive Income (FVOCI) for equity instruments?

A.Fair value gains and losses are accumulated in OCI and recycled to profit or loss when the shares are sold

B.Fair value gains and losses are recognized in OCI and are NEVER reclassified (recycled) to profit or loss on subsequent derecognition

C.Dividends received from the equity instrument are recognized in OCI rather than profit or loss

D.An expected credit loss (ECL) impairment provision must be calculated and charged to profit or loss each reporting period

Explanation: Under EAS 47, an entity may make an irrevocable election at initial recognition to present subsequent changes in fair value of an investment in an equity instrument in OCI. Fair value gains/losses recognized in OCI are never recycled to profit or loss upon derecognition (they may only be transferred within equity to retained earnings). Dividends are recognized in profit or loss, and equity instruments are not subject to impairment testing.

10In the Expected Credit Loss (ECL) framework under EAS 47, when does a financial asset transition from Stage 1 (12-month ECL) to Stage 2 (Lifetime ECL)?

A.When there has been a significant increase in credit risk (SICR) since initial recognition, regardless of whether an objective default event has occurred

B.Only after contractual payments are more than 90 days past due and formal bankruptcy proceedings commence

C.Whenever the market interest rate in Egypt rises by more than 200 basis points

D.When management decides to write off fifty percent of the outstanding loan balance

Explanation: Under EAS 47, financial instruments transition from Stage 1 to Stage 2 when there has been a Significant Increase in Credit Risk (SICR) since initial recognition. In Stage 2, the entity must recognize lifetime expected credit losses (rather than 12-month ECL), even though the asset is not credit-impaired (Stage 3).

About the ESAA Final Level Exam Exam

The ESAA Final Level Examination (امتحانات المستوى النهائي) is the capstone assessment for full membership in the Egyptian Society of Accountants & Auditors. It is tested across five papers — Financial Accounting (consolidation, business combinations, financial instruments), Auditing (group audits, ISQM quality management, KAM), Taxation (corporate tax controversy, transfer pricing), Finance & Financial Management (valuation, capital budgeting, risk hedging), and Corporate Governance & Risk Management (FRA governance code, COSO ERM). The official papers are computer-based and sat in Arabic, mixing essay and applied case work with multiple-choice items. This bank is an English-language MCQ study adaptation of those competencies — not an official translation, and not a simulation of the exam's essay format or Arabic language environment.

Exam sponsor: Egyptian Society of Accountants & Auditors (ESAA / جمعية المحاسبين والمراجعين المصرية). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Five subject papers sat on five consecutive days at ESAA headquarters in 6th of October City, one week after the Intermediate sitting. ESAA's regulations schedule sittings at the end of May and November each year; recent sittings ran 20–24 June 2026 and 20–24 December 2025. Candidates have five years from passing the Intermediate level to sit the Final level papers.

Time Limit

4 hours for Financial Accounting and for Auditing; 3 hours for each of Taxation, Finance & Financial Management, and Corporate Governance & Risk

Passing Score

Not published by ESAA on its public pages; results are issued per subject via the trainee/member portal

Exam / Certification Fees

Not published on the public ESAA site; per-subject entry fees are set by the ESAA Board for each session and quoted to registered trainees on the exam application forms

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

20%

Advanced Financial Accounting & Group Reporting

Complex group consolidation mechanics under EAS 42, acquisition accounting under EAS 29, financial asset classification and expected credit losses (EAS 47), foreign exchange translation reserves, and deferred tax calculations.

20%

Advanced Auditing, Assurance & Professional Quality

Audit firm quality management systems under ISQM 1 and 2, group audit planning and execution (ISA 600), auditing complex financial estimates (ISA 540), fraud identification (ISA 240), and Key Audit Matters disclosure (ISA 701).

20%

Advanced Egyptian Taxation & Transfer Pricing

Corporate tax adjustments under Law 91/2005, Egyptian transfer pricing documentation and arm's length methods, thin capitalization debt-equity thresholds, cross-border treaty relief, and administrative tax litigation under Law 206/2020.

20%

Corporate Finance & Advanced Financial Management

Capital budgeting with real options, cost of capital (WACC) and optimal leverage, discounted cash flow (DCF) enterprise valuation, merger synergy evaluation, and financial derivatives hedging strategies.

20%

Corporate Governance & Enterprise Risk Management (ERM)

Egyptian Corporate Governance Code requirements, board audit committee governance, COSO Enterprise Risk Management (ERM) framework implementation, internal audit assurance, and sustainability ESG frameworks.

Preparing for the ESAA Final Level Exam Exam

What You Need to Know

Passing score: Not published by ESAA on its public pages; results are issued per subject via the trainee/member portal
Assessment: Five subject papers sat on five consecutive days at ESAA headquarters in 6th of October City, one week after the Intermediate sitting. ESAA's regulations schedule sittings at the end of May and November each year; recent sittings ran 20–24 June 2026 and 20–24 December 2025. Candidates have five years from passing the Intermediate level to sit the Final level papers.
Time limit: 4 hours for Financial Accounting and for Auditing; 3 hours for each of Taxation, Finance & Financial Management, and Corporate Governance & Risk
Exam / certification fees: Not published on the public ESAA site; per-subject entry fees are set by the ESAA Board for each session and quoted to registered trainees on the exam application forms Official sources

Using Our Practice Resources

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

ESAA Final Level Exam: Suggested Study Strategy

1Master group consolidation eliminations, non-controlling interest calculations, and purchase price allocations under EAS 29 and EAS 42.

2Review expected credit loss (ECL) 3-stage impairment models and classification of financial assets under EAS 47 / IFRS 9.

3Practice discounted cash flow (DCF) enterprise valuation, WACC calculations, and corporate restructuring synergy estimates.

4Understand Egyptian transfer pricing documentation rules (master file, local file, CbCR) and thin capitalization interest deduction limitations.

5Study the Egyptian Corporate Governance Code issued by the FRA and the COSO Enterprise Risk Management (ERM) framework.

Frequently Asked Questions

What subjects are tested on the ESAA Final Level examination?

ESAA's published Final Level curriculum lists five subjects: Financial Accounting (المحاسبة المالية), Auditing (المراجعة), Taxation (الضرائب), Finance & Financial Management (التمويل والإدارة المالية), and Corporate Governance & Risk Management (حوكمة الشركات والمخاطر). The June 2026 timetable sat them over five consecutive days in that order.

What are the prerequisites to sit for the ESAA Final Level exam?

Candidates must have passed the ESAA Intermediate Level examinations and then waited a further 1.5 years, which secures the three years of training the qualification requires. Where the three training years are already complete, a candidate may sit one year after passing the Intermediate level, subject to Membership Committee approval and Board ratification.

What credentials are conferred upon passing the ESAA Final Level?

Passing the Final Level grants full Membership in the Egyptian Society of Accountants & Auditors (شهادة عضوية إيسا), conferring the highest professional accounting credential in Egypt and full statutory eligibility to audit joint-stock companies, banks, and listed corporations.

What is the passing score and completion timeframe for ESAA Final?

ESAA does not publish a pass mark on its public website; results are released per subject through the trainee/member portal. ESAA does publish the timeframe: candidates have five years from the date they pass the Intermediate Level to sit the Final Level examinations, with sittings scheduled at the end of May and November each year.

How does this practice bank adapt the official exam format?

The official examination is computer-based and sat in Arabic on ESAA's own digital exam platform, and it is largely essay and applied case work — ESAA announced the Auditing paper as 70% essay and 30% multiple choice. This OpenExamPrep bank instead provides 100 English-language multiple-choice questions with worked calculations and detailed explanations across all five subjects. It is a study aid for the underlying standards, computations, and professional judgment; it is not an official translation, not a simulation of the exam's format, and not a substitute for practising full essay and case-study answers in Arabic.