How to Choose an Audit Firm in Riyadh: What to Check Before You Sign

Key facts

• Small and micro companies meeting two of three size criteria are exempt from appointing an auditor; the manager files a statement confirming it.

  Source:Companies Law Art. 19 and its Implementing Regulations, as stated by the Ministry of Commerce [T13-0001] official text ↗

• Partners holding the share set in Art. 19(3) of the Companies Law can still require an auditor, and so can the articles.

  Source:Companies Law Art. 19 and its Implementing Regulations, as stated by the Ministry of Commerce [T13-0001] official text ↗

• Financial statements are filed on the Qawaem platform within six months of the year end: 30 June for a 31 December year end.

  Source:Companies Law Art. 17(2) and Art. 262(e), as quoted by the Ministry of Commerce [T13-0002] official text ↗Ministry of Commerce announcement, 4 Jun 2026 [T13-0003] official text ↗

• Late filing fines range from SAR 2,000 to SAR 20,000 per responsible manager, depending on company form and capital.

  Source:Ministerial Decision 236 of 26/11/1447H (published in Umm Al-Qura), under the Companies Law and its Implementing Regulations [T13-0004] official text ↗

• A branch of a foreign company files Saudi financial statements with an auditor’s report within six months of its year end.

  Source:Companies Law Arts 238-239 [T10-0174]

1. Does your company need an auditor?

• Micro and small companies are exempt from appointing an auditor when they meet two of three criteria: annual revenue not above SAR 10 million, total assets not above SAR 10 million, and no more than 49 employees. The manager or board chair attaches a statement to the filed financial statements confirming the exemption.

  Source:Companies Law Art. 19 and its Implementing Regulations, as stated by the Ministry of Commerce [T13-0001] official text ↗

• The exemption falls away if partners or shareholders holding the share set in Art. 19(3) of the Companies Law ask for an auditor, or if the company’s articles require one.

  Source:Companies Law Art. 19 and its Implementing Regulations, as stated by the Ministry of Commerce [T13-0001] official text ↗

• A branch of a foreign company must file Saudi financial statements together with an auditor’s report within six months of its year end; the branch manager may appoint the auditor if authorised.

  Source:Companies Law Arts 238-239 [T10-0174]

• Every company prepares financial statements under the standards approved in the Kingdom and files them on Qawaem within six months of the year end; the manager, board chair or liquidator is responsible for filing.

  Source:Companies Law Art. 17(2) and Art. 262(e), as quoted by the Ministry of Commerce [T13-0002] official text ↗

2. Check the licence before anything else

• Audit firms in the Kingdom are licensed by the Saudi Organization for Chartered and Professional Accountants (SOCPA). Ask for the firm’s licence number and look it up on SOCPA’s public list of licensed firms.

• Check that the partner who will sign your report is personally licensed, not only the firm. SOCPA certificates can be verified on its website.

• Entry Post’s SOCPA firm licence is No. 933 (active since 2023).

3. Ten criteria for choosing an audit firm

• Licence and signing partner: a valid SOCPA firm licence and a licensed partner who signs and stands behind the report.

• Sector experience: the firm has audited companies with your business model, revenue recognition and inventory or contract issues.

• Partner involvement: ask how many hours the signing partner spends on your file, and who you deal with day to day.

• Independence: ask how the firm keeps the audit independent if it also prepares your books or tax returns.

• Timetable: the plan should work back from your Qawaem filing deadline, with dates for fieldwork, the draft report and sign-off.

• Reporting language: Arabic statements for filing, and an English version if a foreign parent or lender needs one.

• Management letter: you should receive written findings on control weaknesses, not only the opinion.

• Zakat and tax: the audited statements feed your zakat or income tax return, so check the firm understands both.

• Continuity: the same team from year to year, and a named contact who answers.

• Engagement letter: a written letter that sets out the scope, the deliverables, the timetable and the basis of the fee before work starts.

4. Audit, review or agreed-upon procedures?

• A statutory audit gives an opinion that the financial statements are fairly presented; it is what the Companies Law requirement refers to.

• A review gives a lower level of assurance and is sometimes asked for by lenders or investors between audits.

• Agreed-upon procedures report factual findings on specific items without an opinion; Local Content certificates and some contract or grant reports use this format.

5. Red flags

• The firm cannot give you a SOCPA licence number, or the signing partner is not licensed.

• A fixed sign-off date is promised before the firm has seen your books.

• No written engagement letter, or a scope that leaves out items your lender, parent or regulator needs.

• The firm offers to adjust figures to reach a result, instead of reporting what the records show.

6. What to prepare before the audit starts

• Legal: commercial registration, articles of association and amendments, partner or board resolutions.

• Accounting: trial balance, general ledger, bank statements and reconciliations, last year’s audited statements.

• Assets and inventory: fixed asset register and the inventory count plan, so the auditor can attend the count.

• Tax and zakat: the last returns and any ZATCA assessments, and the balances confirmed with banks, customers and suppliers.

7. How Entry Post works

• Entry Post Certified Public Accountants is a SOCPA-licensed (No. 933) audit, zakat and tax firm at 204 Olaya Street, Riyadh, founded in 2023. A partner leads each engagement, with reports in Arabic and English.

• We start by confirming whether you need an audit at all, then agree the scope and a timetable that meets your Qawaem deadline.

Frequently asked questions

Rules cited on this page

Each statement above names the library row it comes from. The law and article, the date the row was last verified against the official source, and a link to the official text where one is held are listed here.