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    Country by Country Financial Reporting and Auditing Framework

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    Saudi Arabia – AlAzem & AlSudairy CPAs and Consultants (prepared March 2015)

    Preparation and Filing of Statutory Financial Statements

    Joint stock companies have to announce the publishing of the Quarterly Financial Statements along with the Auditors' report on the review of these financial statements within 15 working days  from the close of a quarter. In other words, the Company would be required to announce its publication within the 21st day of the following month.

    Joint stock companies, also have to announce the publishing of the audited financial statements by 25th February of the following year.

    In both cases above, the company will have 24 hours from announcement to upload the financials into Tadawul. If the Company fails to meet its reporting deadlines, the Company would be fined SAR 50,000 and their share trade in the Tadawul would be halted pending filling of the relevant report.

    A Brokerage Company would be required to make two filings per year with SAMA - Saudi Arabia Monetary Agency. In other words, there would be a semi-annual filing of the financials and audit reports. The filings must be completed between July 1 to 21 for the first report, and between January 1 to 21 for the second report.

    All entities registered through SAGIA (Saudi Arabia General Investment Authority (Mixed or Foreign)) must submit the tax declarations along with the audited financial statements within 120 days from the close of the financial year, failing which the company would incur a minimum penalty of SAR 20,000. The Audited Financials would also be required for the renewal of the SAGIA license. In case the foreign or mixed entities owns/operates factories, the audited financial statements would be submitted to the Ministry of Commerce as well.

    All other entities would be required to file their audited reports with the Ministry of Commerce of other legal departments as may be required.

    Financial Reporting Framework

    All the entities in KSA follow accounting standards and regulations issued by the Saudi Organization for Certified Public Accountants - SOCPA. 


    Audit Requirements for Companies Registered in Kingdom of Saudi Arabia.

    In the KSA the following form of companies must have an audit if at any time in the financial year it has been:

    • Joint stock companies;
    • Limited liability companies;
    • Any other business which is required by any other law.

     

    The law is silent about the audit of establishments. Normally establishments get themselves audited when they are required to do so by any regulatory body or financial institution or to meet any other special requirement.

    The law in KSA requires that all the accounting records must be maintained within KSA. It also requires that they be maintained in Arabic.

    Auditor's Appointment, Rotation and Joint Audits

    Auditors in the KSA are appointed for a fixed period of one year and can continue as the auditor of the company after the first year subject to approval of the shareholders in the general assembly meeting. KSA does not currently have any rules relating to mandatory rotation of audit firm except for listed companies which is set at a maximum of 5 years.

    Auditing Standards

    AlAzem & AlSudairy CPAs and Consultants, member firm of Crowe Horwath International, is required to undertake its audit and express an opinion on the financial statements in accordance with auditing standards generally accepted in the Kingdom of Saudi Arabia, issued Saudi Organization for Certified Public Accountants - SOCPA.

    Ethical Framework

    All the practicing partners in AlAzem & AlSudairy CPAs and Consultants are members of different professional bodies including AICPA and SOCPA which have their own ethical requirements for the members to follow.


    Audit Regulation

    AlAzem & AlSudairy CPAs and Consultants are subject to the following external and internal monitoring processes with regard to their audit practice:

    External Monitoring

    The work carried out by audit firms within KSA are subject to supervisory reviews by the Saudi Organization for Certified Public Accountants - SOCPA.

    Internal Monitoring

    To ensure the quality of work performed, a series of Quality Control Reviews is performed, ultimately supervised by the QCR - Quality Control Reviewer.

    Transparency Report

    There are no transparency reporting requirements as such in the Kingdom of Saudi Arabia.

     

     



    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292


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