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ESAA Final Level Exam (المستوى النهائي)

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Key Facts: ESAA Intermediate Level Exam Exam

5 Subjects

Modular written papers covering the intermediate curriculum

ESAA Examination Regulations (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)

1.5 Years

Minimum approved training required before sitting

ESAA Qualifying Regulations (esaa.org.eg)

5 Years

Window from training-contract approval to sit the intermediate papers

ESAA Qualifying Regulations (esaa.org.eg)

2 Sittings

Exam sessions held each year at the end of May and November

ESAA Qualifying Regulations (esaa.org.eg)

Law 133/1951

Statutory foundation for Egyptian accountancy practice

Egyptian Legislation on Accounting & Auditing

EAS Aligned

Questions aligned with Egyptian Accounting Standards

ESAA Accounting Curriculum

100 MCQs

Free English-language practice study adaptation

OpenExamPrep Practice Bank

Master the five subjects of the Egyptian Society of Accountants & Auditors Intermediate Level exam with 100 practice MCQs. Covers Egyptian Accounting Standards (EAS), Egyptian Auditing Standards (ESA), Income Tax Law 91/2005, VAT Law 67/2016, cost analysis, and Law 133/1951 ethics. 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 Intermediate Level Exam Practice Questions

Try these sample questions to review concepts for the ESAA Intermediate 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 1 (Presentation of Financial Statements), what is the mandatory presentation requirement for offsetting assets and liabilities or income and expenses?
A.Offsetting is mandatory for all trade receivables and trade payables with the same group counterparties
B.Offsetting is permitted whenever management believes it presents a more condensed and readable balance sheet
C.Offsetting is strictly prohibited unless specifically required or permitted by another Egyptian Accounting Standard
D.Offsetting is allowed without restriction provided the net balance is disclosed in the notes
Explanation: EAS 1 explicitly prohibits the offsetting of assets and liabilities, or income and expenses, unless offsetting is required or permitted by another Egyptian Accounting Standard. Offsetting detracts from the ability of users to understand the transactions and assess future cash flows.
2According to EAS 2 (Inventories), which cost formula is explicitly prohibited for measuring the cost of inventories?
A.Last-In, First-Out (LIFO)
B.First-In, First-Out (FIFO)
C.Weighted Average Cost Formula
D.Specific identification of individual costs
Explanation: Under EAS 2 (and aligned IFRS IAS 2), the Last-In, First-Out (LIFO) method is prohibited. Inventories must be measured at the lower of cost and net realizable value, using either FIFO or weighted average cost (or specific identification for non-interchangeable items).
3Under EAS 10 (Property, Plant and Equipment), which of the following costs incurred on an acquired production machine must be capitalized as part of its initial carrying amount?
A.Costs of training staff to operate the new production equipment
B.Costs of opening a new facility or inaugurating the new production line
C.Initial operating losses incurred before the machinery reaches planned operating volume
D.Direct costs of site preparation and initial testing of whether the asset is functioning properly
Explanation: Under EAS 10, initial cost includes purchase price, import duties, and directly attributable costs necessary to bring the asset to the location and condition for its intended operation, including site preparation and testing costs (net of test sales). Training and opening costs are expensed.
4Under EAS 48 (Revenue from Contracts with Customers), what is the required condition for an entity to recognize revenue over time?
A.The contract price is fixed and full advance payment has been deposited in the entity's bank account
B.The customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs
C.The entity has transferred legal ownership title to physical goods before production is complete
D.The transaction margin exceeds twenty percent of estimated total manufacturing contract costs
Explanation: Under EAS 48, revenue is recognized over time if one of three criteria is met: (1) customer simultaneously receives and consumes benefits as performed; (2) performance creates/enhances an asset customer controls; or (3) performance creates an asset with no alternative use and the entity has an enforceable right to payment for performance completed to date.
5Under EAS 23 (Intangible Assets), how should costs incurred during the research phase of an internal software project be treated?
A.Recognized directly in other comprehensive income as a revaluation reserve
B.Capitalized as an intangible asset and amortized over its estimated useful economic life
C.Deferred on the statement of financial position until commercial production begins
D.Expensed immediately in profit or loss in the period incurred
Explanation: EAS 23 strictly prohibits capitalizing research expenditure. An entity cannot demonstrate that an intangible asset exists that will generate probable future economic benefits during the research phase; therefore, all research costs are recognized as an expense when incurred.
6In the statement of cash flows prepared under EAS 4, how should dividends paid to shareholders be classified by an Egyptian industrial corporation?
A.Operating cash flows exclusively without any accounting policy choice
B.Investing cash flows exclusively in all circumstances
C.Financing cash flows, or consistently classified as operating cash flows
D.Non-cash equity adjustment excluded entirely from the cash flow statement
Explanation: Under EAS 4, dividends paid may be classified as financing cash flows because they are a cost of obtaining financial resources, or as operating cash flows to assist users in determining the ability of the entity to pay dividends out of operating cash flows. The classification chosen must be applied consistently.
7Al-Amal Manufacturing purchased production machinery on 1 January 2024 for EGP 1,200,000 with an estimated residual value of EGP 200,000 and a 5-year useful life. The company uses the double-declining balance method. What is the depreciation expense for the second year (ending 31 December 2025)?
A.EGP 480,000
B.EGP 288,000
C.EGP 240,000
D.EGP 200,000
Explanation: Double-declining rate = (1 / 5) * 2 = 40%. Year 1 depreciation = EGP 1,200,000 * 40% = EGP 480,000 (residual value is ignored initially in declining balance until carrying value approaches salvage). Carrying amount at start of Year 2 = EGP 1,200,000 - EGP 480,000 = EGP 720,000. Year 2 depreciation = EGP 720,000 * 40% = EGP 288,000.
8At year-end 31 December 2025, Nile Trading Co. holds 5,000 units of finished inventory with an invoice cost of EGP 180 per unit. Estimated selling price is EGP 210 per unit, estimated completion costs are EGP 15 per unit, and estimated selling and distribution costs are EGP 25 per unit. At what total balance sheet value should inventory be reported under EAS 2?
A.EGP 850,000
B.EGP 900,000
C.EGP 975,000
D.EGP 1,050,000
Explanation: Net Realizable Value (NRV) = Estimated selling price - estimated completion costs - estimated selling costs = EGP 210 - EGP 15 - EGP 25 = EGP 170 per unit. Under EAS 2, inventory is valued at lower of cost (EGP 180) and NRV (EGP 170). Therefore, inventory is written down to EGP 170 per unit * 5,000 units = EGP 850,000 (with an inventory write-down expense of EGP 50,000 recognized in profit or loss).
9Cairo Commercial had gross trade receivables of EGP 4,500,000 and an existing credit balance in allowance for doubtful accounts of EGP 80,000 on 31 December 2025. An aging analysis calculates the required provision for expected credit losses at EGP 235,000. What is the adjusting journal entry to record impairment?
A.Debit Impairment Loss on Receivables EGP 315,000; Credit Allowance for Doubtful Accounts EGP 315,000
B.Debit Impairment Loss on Receivables EGP 235,000; Credit Allowance for Doubtful Accounts EGP 235,000
C.Debit Impairment Loss on Receivables EGP 155,000; Credit Allowance for Doubtful Accounts EGP 155,000
D.Debit Allowance for Doubtful Accounts EGP 80,000; Credit Retained Earnings EGP 80,000
Explanation: When using the balance sheet aging approach, the calculated amount (EGP 235,000) represents the desired ending credit balance in the allowance account. Since there is already a credit balance of EGP 80,000, the required adjustment is EGP 235,000 - EGP 80,000 = EGP 155,000 debit to Bad Debt / Impairment Expense and credit to Allowance for Doubtful Accounts.
10Under EAS 28 (Provisions, Contingent Liabilities and Contingent Assets), an Egyptian engineering firm faces a pending environmental lawsuit. Legal counsel advises that there is a 70% probability the firm will be found liable and damages are reliably estimated at EGP 3,000,000. How should this matter be reported?
A.Ignore the lawsuit until the Egyptian Court of Cassation issues a final non-appealable verdict
B.Disclose only a contingent liability in the notes without financial statement recognition
C.Recognize an expected loss provision of EGP 2,100,000 (70% probability * EGP 3,000,000)
D.Recognize a provision of EGP 3,000,000 as a liability with an expense in profit or loss
Explanation: Under EAS 28, a provision must be recognized when: (1) an entity has a present legal or constructive obligation as a result of a past event; (2) it is probable (more likely than not, >50%) that an outflow of resources embodying economic benefits will be required; and (3) a reliable estimate can be made. For a single event with a probable outcome of EGP 3,000,000, the provision is measured at EGP 3,000,000.

About the ESAA Intermediate Level Exam Exam

The ESAA Intermediate Level Examination (امتحانات المستوى المتوسط) is the first major qualifying hurdle for aspiring chartered accountants in Egypt. Run by the Egyptian Society of Accountants & Auditors — Egypt's IFAC member body since 1946 — it requires trainees to pass five subject papers: Financial Accounting, Auditing, Egyptian Taxation, Cost & Management Accounting, and Law & Ethics of the Accounting and Auditing Profession. The official papers are computer-based and sat in Arabic, mixing essay and applied case work with multiple-choice items. This question bank is an English-language MCQ study adaptation of the standards, computation procedures, and statutory rules tested across all five subjects — 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. ESAA's regulations schedule sittings at the end of May and November each year; recent sittings ran 13–17 June 2026 and 13–17 December 2025. Trainee accountants have up to five years from Board approval of the training contract to sit the Intermediate examinations.

Time Limit

4 hours for Financial Accounting and for Auditing; 3 hours for each of Taxation, Cost & Management Accounting, and Law & Ethics

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.

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%

Financial Accounting & Egyptian Accounting Standards (EAS)

General accounting principles, double-entry bookkeeping, adjusting and closing entries, preparation of financial statements under EAS (balance sheet, income statement, cash flows), asset valuation, and revenue recognition.

20%

Auditing Principles & Egyptian Auditing Standards (ESA)

Statutory audit purpose, ethical requirements and professional independence, audit risk assessment, internal controls testing, evidence gathering techniques, audit sampling, and statutory audit reporting.

20%

Egyptian Taxation & Tax Law Compliance

Income Tax Law No. 91 of 2005 (employment income, commercial profits, corporate tax adjustments), Value Added Tax Law No. 67 of 2016, and Unified Tax Procedures Law No. 206 of 2020.

20%

Cost Accumulation & Management Accounting

Cost classifications, job-order costing, process costing, activity-based costing (ABC), cost-volume-profit analysis, budgetary planning, standard costing variances, and short-term operational decision making.

20%

Business Law & Professional Ethics for Accountants

Accountancy Profession Law No. 133 of 1951, Companies Law No. 159 of 1981, commercial contract basics, and the IFAC/ESAA Code of Ethics fundamental principles and threat safeguards.

Preparing for the ESAA Intermediate 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. ESAA's regulations schedule sittings at the end of May and November each year; recent sittings ran 13–17 June 2026 and 13–17 December 2025. Trainee accountants have up to five years from Board approval of the training contract to sit the Intermediate examinations.
  • Time limit: 4 hours for Financial Accounting and for Auditing; 3 hours for each of Taxation, Cost & Management Accounting, and Law & Ethics
  • 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
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ESAA Intermediate Level Exam: Suggested Study Strategy

1Practice multi-step journal entries and financial statement preparation adjustments under Egyptian Accounting Standards (EAS).
2Master Egyptian tax calculations for corporate tax (Law 91/2005), salary tax brackets, and VAT input deductions (Law 67/2016).
3Memorize the fundamental ethical principles and independence threat categories under the IFAC/ESAA Code of Professional Conduct.
4Solve quantitative variance analysis, break-even, and relevant cost problems systematically.
5Review auditor reporting standards, Key Audit Matters (KAM), and modifications under Egyptian Auditing Standards (ESA).

Frequently Asked Questions

What subjects are included in the ESAA Intermediate Level exam?

The ESAA Intermediate curriculum consists of five mandatory subjects: Financial Accounting (المحاسبة المالية), Auditing (المراجعة), Taxation (الضرائب), Cost & Management Accounting (محاسبة التكاليف والمحاسبة الإدارية), and Business Law & Professional Ethics for Accountants and Auditors (قانون وسلوكيات مزاولي مهنة المحاسبة والمراجعين).

Who is eligible to take the ESAA Intermediate examination?

Candidates must hold a Bachelor of Commerce degree in Accounting, register an approved training contract with an active ESAA Fellow or Member, and complete at least 1.5 years of verified continuous professional training before sitting the exam.

What is the passing score and retake policy for ESAA Intermediate?

ESAA does not publish a pass mark on its public website; results are released per subject through the trainee/member portal, and candidate accounts of the required marks vary. What ESAA does publish is the eligibility window: trainees have five years from Board approval of the training contract to sit the Intermediate examinations, with sittings scheduled at the end of May and November each year.

In what language and format is the official ESAA exam conducted?

Official ESAA examinations are set and answered in Arabic, using standard Arabic together with English technical terminology. Since 2022–2024 ESAA has moved the papers to a computer-based system on its own digital examination platform, with candidates sitting on their own laptops under Safe Exam Browser at ESAA headquarters. Papers are largely essay and applied case work; ESAA announced the Auditing paper as 70% essay and 30% multiple choice. This OpenExamPrep practice bank is an English-language MCQ study adaptation designed to reinforce technical concepts and computations — it is not an official translation, and it does not simulate the exam's essay format.

Does passing ESAA Intermediate grant immediate licensing as a chartered accountant?

No. Passing the Intermediate Level is the prerequisite milestone allowing candidates to complete their remaining training and register for the ESAA Final Level Examination, which leads to full fellowship and unrestricted public practice rights.