Companies are required to have annual independent audits.
Joint stock companies and limited liability partnerships must appoint at least one independent auditor, and banks are required to have two independent joint auditors.
Other companies, however, such as partnerships are not required to do so which will have an impact from Zakat/tax perspective.
The appointed auditor must be a certified public accountant member of the Saudi Organization for Certified Public Accountants “SOCPA” and licensed within KSA from.
Such licences are only given to KSA nationals.
Accounts have to be prepared as per International financial reporting standard (IFRS ).
All listed companies are required to adopt IFRS for financial periods beginning on or after January 1, 2017, and all other entities for financial periods beginning on or after January 1, 2018.
Unlisted entities may opt for an early adoption of IFRS from January 1, 2017.
SOCPA is in the process of adopting IFRS for small- and medium-sized entities (SMEs) to be effective in 2018 for use