Statutory Auditing in Saudi Arabia Compliance Made Easy with Accurate Accounting
In Saudi Arabia, businesses are required to conduct statutory audits in order to track and assess their performance. A statutory audit is an audit that is mandated by law to assess the financial records and situation of the firm.
A statutory audit is typically carried out for the general public. In order to provide a fair and impartial assessment of a company’s financial situation, statutory audit firms examine and keep an eye on the company’s financial records and accounting procedures.
While guaranteeing compliance with legal requirements, hiring accounting and auditing services in Saudi Arabia can reduce the workload for internal accounting teams.
Businesses must submit their financial statements to ZATCA and the Ministry of Commerce on time. The General Authority of Zakat and Tax (ZATCA) requires submission within 120 days after the end of the financial year.
In Saudi Arabia, companies can adopt either the Gregorian (calendar) year or the Hijri year as their fiscal year. However, most businesses follow the calendar year, meaning their fiscal year ends on December 31. Consequently, they must submit their audited financial statements by April 30. Failure to do so results in a SAR 20,000 fine from ZATCA.
Additionally, audited financial statements must be submitted to the Ministry of Commerce via the Qawaem portal by June 30. Non-compliance with this requirement may result in further penalties from the Ministry of Commerce.
Legal Structure and Supervision of Compliance
The legal framework in which Saudi Arabian audit firms operate is regulated by a number of laws and rules. The Companies Law, which was most recently amended in 2016, specifies basic standards for financial reporting and corporate governance. Financial institutions are also required to follow the Banking Control Law’s rules for auditing and accounting procedures.
Saudi Arabian auditing practices comply with International Financial Reporting Standards (IFRS), which are required by Regulation No. M12 of the Certified Public Accountants. The operations of audit firms are monitored by the Saudi Organization for Certified Public Accountants (SOCPA), which makes sure that ethical and professional standards are followed.
The purpose of statutory auditing services
Statutory auditing services are intended to guarantee the accuracy and fair presentation of a government’s or company’s financial records. Statutory audits are conducted by an outside organization and are mandated by law.
Financial transparency by formalizing the accuracy and fairness of financial statements, investor support by enhancing trust in a company and drawing in new investors, compliance by making sure a company complies with regulatory requirements and standards, fraud prevention by identifying irregularities and discouraging fraud, and decision-making by giving a clear and trustworthy picture of a company’s financial position. Statutory audits look into a business’s finances, transactions, and financial statements, including bank balances, accounting, and bookkeeping records. Regarding the validity and soundness of the company’s financial records, the statutory auditor offers an unbiased assessment.
How to Perform Audits in Saudi Arabia
To conduct an audit in Saudi Arabia, take the following actions: The Ministry of Commerce, which maintains the audit registration, must first grant you an audit license. For planning, review prior audits and scholarly works. Notify and include audit participants, then plan and coordinate the procedure. Complete the audit and create an audit checklist. Document and evaluate results, conduct research, and develop and carry out action plans. Authorized workers must digitally sign documents and submit financial reports using the Zakat, Tax, and Customs Authority (ZATCA) computerized network. Before submitting, make sure all the data is correct. Saudi Arabia adheres to the Saudi Organization for Certified Public Accountants’ (SOCPA) accounting standards.
Fulfilling Audit Requirements
Saudi businesses are required to hold annual shareholder meetings, produce financial reports on schedule, and submit financial accounts for the previous year’s operations by March 31 of the current fiscal year.
To successfully navigate Saudi Arabia’s audit standards, one must follow the law, work with certified audit firms, and be dedicated to open and honest financial reporting. Businesses may guarantee compliance and cultivate investor trust in the ever-changing Saudi market environment by utilizing the experience of audit professionals.
Services Offered by Audit Firms
Audit firms in Saudi Arabia offer a variety of services to meet client needs, including internal or operational audits that assess company performance and operational efficiency, external audits that analyze financial operations and ensure compliance with regulatory standards, and statutory audits conducted annually by independent auditors, which involve comprehensive reviews and reporting on financial statements.
Accurate, a business formation agency in Saudi Arabia, helps businesses with their statutory audits, ensuring thorough and compliant financial reviews. Our statutory auditing team consists of experienced professionals to effectively conduct the statutory auditing procedure. The team members remain acquainted with the latest changes in the statutory auditing arena to stay ahead in the loop.
If you are in search of one of the best Statutory Audit support services in KSA, look no further and contact Accurate where you will find a team of dedicated consultants equipped with relevant experience who take pride in creating value for their clients.
Our statutory audit department conducts audits by adhering to various global accounting and auditing standards for conducting fair and accurate audits for various stakeholders like government, banks, financial institutions, the general public, and investors. Additionally, we specialize in assisting with company formation in Saudi Arabia, ensuring a smooth and compliant setup process. You can contact us to enquire more about the statutory audit services as well as our company formation expertise.
Ready to start your business in KSA? Contact us today for free expert guidance!
Ready to start your business in KSA?