SOCPA Auditing case studies
SOCPA Auditing · Put your knowledge to work in context.
The SOCPA Auditing exam - commonly referenced as the SOCPA Fellowship Exam (اختبار الزمالة) - is the professional certification assessment administered by the Saudi Organization for Chartered and Professional Accountants (SOCPA), the Saudi body whose homepage publishes a 2026 professional exams guide and a dedicated application service for the fellowship test. It is aimed at accounting and auditing professionals, including students who want to build a career path before graduation, and it is structured around four broad knowledge areas: auditing and assurance, financial accounting and reporting, management accounting and cost accounting, and taxation, commercial law and professional ethics. The SOCPA Auditing case studies are 5 cases and about 3,026 words.
1Revenue Cut-Off Under Pressure at Year-End
(a SOCPA-audited entity, IFRS as endorsed in KSA) has a 31 December year-end. Materiality is SAR 400,000.
628 words, about 3 min2Lease Classification and the Right-of-Use Asset
Sara Contracting (IFRS 16 applies) signs a 5-year contract for a specialised piece of earth-moving equipment on 1 January 20X5. Facts: annual payments of SAR 180,000 payable in arrears; the lessor may substitute the equipment with an equivalent model at any time without Sara's consent; the equipment is highly specialised and only Sara can operate it economically; the contract includes a purchase option at SAR 250,000 at the end of year 5, when the expected fair value is SAR 600,000; Sara's incremental borrowing rate is 7%; the implicit rate is not readily determinable.
501 words, about 3 min3Make-or-Buy with a Binding Constraint
Jeddah Foods produces three products. Machine hours are the binding constraint: 40,000 hours available per month.
594 words, about 3 min4Zakat Base and the Non-Collectible Receivable
Riyadh Industrial Co. is a Saudi closed joint-stock company, 100% Saudi-owned, subject to Zakat.
594 words, about 3 min5Auditor Independence and a Contingent Fee
A licensed Saudi audit firm has audited Dammam Logistics for four years; the engagement partner, Fahad, has led the audit throughout. Dammam Logistics has now asked the firm to (a) continue as auditor for the coming year, (b) prepare its statutory financial statements from the trial balance, and (c) accept a fee arrangement under which 30% of the audit fee is contingent on the company obtaining a bank loan, which the bank has indicated will depend on the audited statements.
709 words, about 4 min