Free Practice Questions for Serbia Authorized Auditor Exam

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Key Facts: Serbia Authorized Auditor Exam Exam

Modular subject examination papers across Level 1 and Level 2

Komora ovlašćenih revizora (KOR)

3 Years

Mandatory practical audit experience required for licensure (at least 2 under mentor)

Zakon o reviziji (RS 73/2019)

RSD 11,700

Published fee per subject examination, excluding initial processing and certificate fees

Komora ovlašćenih revizora (KOR)

7 Years

Maximum consecutive signing period for a key audit partner before mandatory rotation

Zakon o reviziji (RS 73/2019)

KOR administers 13 written subject examinations, subject to exemptions, with 180 minutes and a 60% pass requirement per subject. This independent English MCQ bank provides selected-topic study practice. Higher education and practical audit employment are requirements for later licensure, rather than prerequisites for taking the examinations.

Sample Serbia Authorized Auditor Exam Practice Questions

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

1According to ISA 200 (Overall Objectives of the Independent Auditor), what attitude must the auditor maintain throughout the audit planning and performance to recognize conditions that may indicate possible misstatement due to error or fraud?

A.Professional skepticism

B.Professional judgment

C.Objectivity

D.Confidentiality

Explanation: ISA 200 requires the auditor to plan and perform an audit with professional skepticism, recognizing that circumstances may exist that cause the financial statements to be materially misstated. Professional skepticism includes being alert to contradictory audit evidence and questioning the reliability of documents and responses.

2Under ISA 210 (Agreeing the Terms of Audit Engagements), which condition represents a necessary precondition for an audit that management must acknowledge before the engagement is accepted?

A.Management's responsibility for determining the auditor's materiality and selecting the audit sample

B.Preparation of financial statements in accordance with the applicable financial reporting framework and maintaining necessary internal controls

C.The auditor's responsibility for designing and operating the client's financial reporting controls

D.Management's right to restrict access to records that it considers commercially sensitive

Explanation: ISA 210 requires management to acknowledge responsibility for preparing the financial statements under the applicable framework and for the internal control needed to produce statements free from material misstatement. Management must also agree to provide relevant information and access; appointing an auditor does not transfer management's responsibilities to the auditor.

3Under the Serbian Law on Audit (Zakon o reviziji), what is the minimum period for retaining audit working documentation, measured from the business year to which the audit relates?

A.3 years

B.5 years

C.6 years

D.15 years

Explanation: Article 37 of the Law on Audit requires audit working documentation to be retained for at least six years, counted from the business year to which the audit relates. The statutory starting point matters when setting a document-retention schedule.

4Under ISA 240 (The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements), what primary distinction separates fraud from unintentional error in financial reporting?

A.Whether the underlying action causing the misstatement is intentional or unintentional

B.Whether the monetary amount of the misstatement exceeds overall planning materiality

C.Whether the misstatement affects current assets or non-current liabilities

D.Whether the misstatement was identified by internal control before the auditor began testing

Explanation: ISA 240 explicitly states that the distinguishing factor between fraud and error is whether the underlying action that results in the misstatement of the financial statements is intentional or unintentional. Fraud involves intentional deception, whereas error is unintentional.

5In the audit risk model (Audit Risk = Inherent Risk × Control Risk × Detection Risk), how must the auditor adjust planned detection risk when the assessed Risk of Material Misstatement (IR × CR) is high?

A.Set acceptable detection risk to a higher level by reducing substantive testing

B.Set acceptable detection risk to a lower level by expanding substantive testing

C.Hold detection risk constant and adjust inherent risk downward

D.Reduce substantive procedures because a high inherent risk assessment supplies sufficient audit evidence

Explanation: There is an inverse relationship between the assessed risk of material misstatement (RMM) and acceptable detection risk. When RMM is high, the auditor must set acceptable detection risk to a lower level to keep overall audit risk at an acceptably low level, which requires expanding substantive audit procedures in nature, timing, or extent.

6An auditor plans an audit for a manufacturing company with profit before tax of 120,000,000 RSD and total assets of 1,500,000,000 RSD. The audit firm uses a benchmark of 5% of profit before tax for overall materiality, and sets performance materiality at 65% of overall materiality. What is the calculated performance materiality?

A.3,900,000 RSD

B.6,000,000 RSD

C.7,800,000 RSD

D.9,750,000 RSD

Explanation: Overall materiality = 5% of 120,000,000 RSD = 6,000,000 RSD. Performance materiality = 65% of 6,000,000 RSD = 3,900,000 RSD. It is set below overall materiality to reduce the probability that aggregate uncorrected and undetected misstatements exceed overall materiality; the stated percentages are this hypothetical firm's choices, not universal ISA requirements.

7Under ISA 315 (Identifying and Assessing the Risks of Material Misstatement), which of the following is considered a required component of obtaining an understanding of the entity and its environment?

A.Determining management's preferred audit opinion before assessing financial reporting risks

B.Evaluating the entity's organizational structure, ownership, governance, and business model

C.Testing the operating effectiveness of every control before understanding the business

D.Obtaining written representations as a substitute for understanding the business model

Explanation: ISA 315 requires an understanding of the entity and its environment, including its business model, ownership, governance, industry, and regulatory factors. This understanding helps identify and assess risks of material misstatement and informs the audit response.

8A Serbian retailer processes sales entirely through an automated system. The auditor concludes that substantive procedures alone cannot provide sufficient appropriate evidence about sales completeness, even without planned reliance on controls. What does ISA 330 require?

A.Test the operating effectiveness of relevant controls because substantive procedures alone are insufficient

B.Avoid testing controls because the auditor initially planned no reliance on them

C.Rely on management's system description as sufficient evidence of operating effectiveness

D.Replace all substantive procedures on material transaction classes, balances, and disclosures with controls testing

Explanation: ISA 330 requires tests of controls when substantive procedures alone cannot provide sufficient appropriate evidence at the assertion level. This applies independently of the original reliance plan and does not eliminate the separate substantive-procedure requirements for material transaction classes, balances, and disclosures.

9A client forwards the auditor a bank-balance PDF and calls it a bank confirmation. The auditor did not control the request or receive the response directly. Which action best addresses the evidence-reliability concern?

A.Accept the PDF because a bank logo conclusively establishes authenticity

B.Verify the source independently and obtain a response under the auditor's control

C.Treat the client's forwarding email as equivalent to direct receipt from the bank

D.Obtain the same PDF from the finance director again and treat repetition as independent corroboration

Explanation: A document's apparent external origin does not remove authenticity and transmission risks when it passes through the client. Independently verifying the source and controlling the confirmation process provides stronger evidence than accepting a forwarded attachment at face value.

10A customer receives a request to reply directly to the auditor only if it disputes a stated receivable balance. No reply arrives. What may the auditor conclude about this negative confirmation?

A.Non-response does not prove agreement or even that the customer received and checked the request

B.Non-response provides the same assurance as an authenticated positive reply agreeing to the balance

C.Non-response conclusively establishes a zero balance

D.Non-response establishes that the customer disputes the entire balance

Explanation: A negative request asks for a reply upon disagreement, but silence does not establish receipt, checking, or agreement. ISA 505 therefore treats negative confirmations as less persuasive evidence than positive confirmations and restricts their use as the sole substantive procedure.

About the Serbia Authorized Auditor Exam Exam

Independent practice by OpenExamPrep for Serbia's Authorized Auditor Exam (Ispit za sticanje zvanja ovlašćeni revizor — KOR). This English-language MCQ study adaptation covers selected auditing, IFRS, accounting, finance, economics, tax, and law topics. Official sample papers are in Serbian and include written explanations, calculations, and practical tasks. This bank is not an official translation, a format simulation, or a substitute for written case work or any required oral clarification.

Exam sponsor: Komora ovlašćenih revizora (KOR) administers the examinations. The Ministry of Finance issues statutory audit licences; the Securities Commission performs public audit oversight.. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

KOR's programme contains 13 subjects in two levels. Level 1: Accounting Theory and Principles; Financial Reporting Framework and IFRS; Financial Analysis; Management Accounting; Risk Management and Internal Control; Audit Theory; Audit Methodology. Level 2: Law for Authorized Auditors; Tax System; Business Information Systems; Microeconomics, General Economics and Financial Economics; Financial Mathematics and Statistics; Financial Management of Enterprises. Our five topic groups and percentages are a selected study allocation, not official subject weights or comprehensive syllabus coverage.

Time Limit

180 minutes per subject paper

Passing Score

At least 60 of 100 points per subject paper

Exam / Certification Fees

RSD 11,700 per paper; initial processing RSD 5,850; certificate RSD 11,700

Exam sponsor website

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

Official sources

Komora ovlašćenih revizora (KOR) — Training and Examinations portal · Source checked 2026-10-10Official portal providing examination conditions, 13 subject frameworks (okviri za ispitna pitanja), reading lists, and candidate schedules.
KOR — Conditions for Acquiring the Title of Authorized Auditor · Source checked 2026-10-10Exam entry, exemptions, fees, and the separate conditions for later Ministry licensure. Education and audit experience are not required merely to enter the examination process.
KOR — Examination Programme · Source checked 2026-10-10Official 13-subject scope across two levels. The percentages on this page describe our 100-question study allocation, not official examination weights or complete coverage of every subtopic.
KOR — Examination Procedures · Source checked 2026-10-10Written papers lasting 180 minutes, 100 available points per subject, and a 60% pass requirement. Unclear written responses may require oral clarification. Sample papers linked by the portal confirm Serbian assessment text; an English sitting has not been verified.
KOR — Fee Schedule · Source checked 2026-10-10RSD 5,850 initial application processing, RSD 11,700 per examination or exemption application, and RSD 11,700 certificate issuance. Check KOR before payment.
Law on Audit (Zakon o reviziji), Službeni glasnik RS 73/2019 · Source checked 2026-10-10Article 2 defines public-interest entities, Article 37 requires six-year working-paper retention from the audited business year, Article 50 addresses partner rotation, and Articles 102–103 assign public oversight to the Securities Commission.
Law on Accounting (Zakon o računovodstvu), Službeni glasnik RS 73/2019 and 44/2021 · Source checked 2026-10-10Entity classification under Article 6 and accounting-service provider permits under Article 18.
IAASB — 2025 Handbook · Source checked 2026-10-10Primary reference for the auditing and quality-management principles used in this independent study bank. Apply the effective version of each standard; revised ISA 570 (2024) is not yet generally effective for periods beginning before 15 December 2026.
IFRS Foundation — Issued Standards · Source checked 2026-10-10Primary reporting references include inventory, impairment, provisions, financial instruments, revenue, leases, and income taxes. IAS 1 questions concern periods before mandatory IFRS 18 application in 2027, assuming no early application.
Serbian Tax Administration — Corporate Income Tax Law · Source checked 2026-10-10Primary tax-law reference for corporate tax, non-deductible expenses, representation caps, depreciation, and transfer pricing.
Serbian Business Registers Agency — Company Formation · Source checked 2026-10-10Official guidance on the general minimum capital amounts and company registration requirements.
Bankruptcy Supervision Agency — Legislation · Source checked 2026-10-10Official bankruptcy-law resources, including the current law with the 2025 Constitutional Court decision.

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.

25% of practice bank

Audit Theory and Methodology

International Standards on Auditing (ISA / MSR), risk assessment model, materiality thresholds, audit sampling, audit evidence, reporting opinions (ISA 700/701/705/706), and the Serbian Law on Audit.

25% of practice bank

Financial Reporting and IFRS

Conceptual Framework, IAS 1, IAS 2, IAS 16, IAS 36, IAS 37, IAS 38, IFRS 9, IFRS 15, IFRS 16, IAS 12, subsequent events (IAS 10), and Serbian Law on Accounting entity classification.

18% of practice bank

Management Accounting and Risk Control

Cost classification, Cost-Volume-Profit analysis, process and job costing, Activity-Based Costing, standard costing and variances, budgeting, COSO internal control framework, and the Three Lines Model.

17% of practice bank

Corporate Finance and Quantitative Analysis

Financial ratio analysis, Cash Conversion Cycle, DuPont decomposition, time value of money, capital budgeting (NPV, IRR), CAPM cost of equity, WACC, inventory EOQ, statistical sampling methods, and price elasticity of demand.

15% of practice bank

Serbian Taxation and Commercial Law

Serbian Corporate Income Tax, non-deductible expenses, representation expense caps, Value Added Tax (PDV) rates and thresholds, Sistem elektronskih faktura (SEF), Law on Business Companies, Bankruptcy Law, and General IT Controls.

Preparing for the Serbia Authorized Auditor Exam Exam

What You Need to Know

Passing score: At least 60 of 100 points per subject paper
Assessment: KOR's programme contains 13 subjects in two levels. Level 1: Accounting Theory and Principles; Financial Reporting Framework and IFRS; Financial Analysis; Management Accounting; Risk Management and Internal Control; Audit Theory; Audit Methodology. Level 2: Law for Authorized Auditors; Tax System; Business Information Systems; Microeconomics, General Economics and Financial Economics; Financial Mathematics and Statistics; Financial Management of Enterprises. Our five topic groups and percentages are a selected study allocation, not official subject weights or comprehensive syllabus coverage.
Time limit: 180 minutes per subject paper
Exam / certification fees: RSD 11,700 per paper; initial processing RSD 5,850; certificate RSD 11,700 Official sources

Using Our Practice Resources

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Serbia Authorized Auditor Exam: Suggested Study Strategy

1Master the decision tree for audit report modifications under ISA 705 (qualified vs. adverse vs. disclaimer) based on materiality and pervasiveness.

2Review Serbian Corporate Income Tax expense deductibility rules thoroughly, especially representation caps (0.5% of total revenue) and transfer pricing documentation.

3Practice multi-step calculations for CVP break-even, variance analysis, WACC, and Cash Conversion Cycle metrics to ensure computational fluency.

4Understand the key difference between General IT Controls (GITCs) and Application Controls in automated financial reporting environments.

Frequently Asked Questions

What is the official structure of the Authorized Auditor examination in Serbia?

KOR's programme has 13 subjects across two levels, subject to approved exemptions. Papers are written, last 180 minutes, and carry 100 points with at least 60 required to pass. Their item structures vary; sample papers include selected responses, written explanations, calculations, and practical problems. Level 2 economics includes microeconomics, general economics, and financial economics.

Who administers and oversees the Authorized Auditor qualification in Serbia?

KOR organizes and conducts the examinations. The Ministry of Finance issues statutory audit licences, while the Securities Commission (Komisija za hartije od vrednosti) exercises public oversight of auditing under the Law on Audit. These are distinct functions.

What practical experience is required to obtain the Authorized Auditor license in Serbia?

The statutory audit licence requires at least three years of employment on statutory audits, including at least two under the supervision of a licensed authorized auditor, together with the prescribed education and other conditions. KOR expressly states that this education and experience are not prerequisites for entering the examination process.

How does this practice bank adapt the official Serbian auditor examination?

Official sample papers confirm Serbian assessment text and include constructed responses as well as selected-response tasks. This bank is independent English-language MCQ study practice, not an official translation or format simulation. Practise written reasoning, calculations, and case work separately; procedures also allow oral clarification of unclear answers. No English-language official sitting has been verified.