Audit for contracting companies certified statements for classification, banks and partners
We audit contracting and construction companies with the partner on the file, and we understand your contracts, retentions and work in progress.
The short answer
Entry Post is a licensed accounting and audit firm in Riyadh. It audits the financial statements of contracting, construction and operation and maintenance companies in Saudi Arabia, with the partner on the file, and issues the independent auditor’s report in Arabic and English. The contractor classification regulation asks for the last year’s balance sheet and income statement, certified by a licensed chartered accountant and deposited on the Qawaem platform.
Reviewed by Noura Alderaan, SOCPA Fellow (No. 1379) ·
Official sources: Ministry of Municipalities and Housing: Contractor Classification Implementing Regulation (Arabic) ↗Companies Law (Royal Decree M/132): Articles 18, 19 and 238 ↗Ministry of Commerce: micro and small companies exempt from appointing an auditor ↗
Who this is for
- Contractors applying for classification or renewing it.
- Contractors whose bank or project owner asks for audited statements.
- Companies that have grown past the exemption tests and must now appoint an auditor.
- Companies that want to change auditor before the year end.
Why you need an audit
- The contractor classification regulation asks for the last year’s balance sheet and income statement, certified by a licensed chartered accountant and deposited on the Qawaem platform.
- The classification certificate is valid for two calendar years, so the requirement returns at every renewal.
- Under the Companies Law every company has a licensed auditor by default. A micro or small company is exempt when it meets two of three tests: annual revenue up to SAR 10 million, total assets up to SAR 10 million, and 49 employees or fewer.
What usually worries you
The classification renewal date is close and the statements are not certified.
We start with a call with the partner, and the written proposal sets a timetable that fits your date. The audit usually takes two to three weeks once the documents are complete.
The bank or project owner is asking about work-in-progress figures.
We test contract revenue, stage of completion and retentions, and discuss findings with your team as they arise, before the report is issued.
We don’t know what the audit will cost or when it will finish.
You receive a written proposal with the scope, timetable and fee before we start.
What the audit focuses on
- Revenue on long-term contracts and the stage of completion.
- Retentions and performance bonds.
- Variation orders and claims.
- Project costs and work in progress.
- Advance payments and amounts due to subcontractors.
How we work
- 1A call with the partnerWe learn your business, its size and why you need the audit.
- 2A written proposalScope, timetable and the documents we need, before we start.
- 3The audit workWe test balances and records and discuss findings with your team as they arise.
- 4The auditor’s reportAn independent auditor’s report in Arabic and English.
Independence first
We do not both audit your accounts and prepare your statements or keep your books. If the statements are not ready, your team or another firm prepares them and we audit them.
Financial statements preparationDocuments we need
- The trial balance and financial statements for the year
- Last year’s financial statements and auditor’s report
- Bank statements and reconciliations
- The fixed asset register
- Articles of association and commercial registration
Request an audit proposal
Answer four short questions and the partner will reply with the scope and timetable.
Frequently asked questions
Are unaudited statements enough for classification?
No. The regulation asks for statements certified by a licensed chartered accountant and deposited on Qawaem.
How early should we start before renewal?
The earlier the better. The audit usually takes two to three weeks once the documents are complete.
Is an audit mandatory for our company?
Under the Companies Law every company has a licensed auditor by default. A micro or small company is exempt when it meets two of three tests: annual revenue up to SAR 10 million, total assets up to SAR 10 million, and 49 employees or fewer. The exemption does not apply in cases the law lists, including where the articles require an auditor, or where the company owns or is a subsidiary of another company unless all of them are small. We check your case for you.
How long does the audit take?
Usually two to three weeks once the documents are complete. The written proposal sets the timetable for your size.
Do you prepare and audit the same financial statements?
No. Independence rules do not allow it. Your team or another firm prepares the statements and we audit them.
In which language is the report issued?
In Arabic and English.
Official sources
- Ministry of Municipalities and Housing: Contractor Classification Implementing Regulation (Arabic)
- Companies Law (Royal Decree M/132): Articles 18, 19 and 238
- Ministry of Commerce: micro and small companies exempt from appointing an auditor
General information based on the official sources listed. It is not professional advice for your company. Entry Post is a private professional firm, not a government body.