Audit for foreign branches and foreign-owned companies in Saudi Arabia
An independent auditor’s report in Arabic and English that meets Saudi requirements and your parent company’s reporting, with the partner on the file.
The short answer
Entry Post is a licensed accounting and audit firm in Riyadh. It audits the financial statements of branches of foreign companies and foreign-owned companies in Saudi Arabia, with the partner on the file, and issues the independent auditor’s report in Arabic and English. A branch of a foreign company prepares financial statements for its Saudi activities under the standards approved in the Kingdom, and files them with the auditor’s report within six months of its year end (Companies Law, Article 238).
Reviewed by Noura Alderaan, SOCPA Fellow (No. 1379) ·
Official sources: 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
- Branches of foreign companies operating in the Kingdom.
- Saudi companies owned by, or shared with, a foreign parent.
- Finance directors who need an English report for head office.
- Foreign companies setting up and appointing an auditor for the first time.
Why you need an audit
- A branch of a foreign company prepares financial statements for its Saudi activities under the standards approved in the Kingdom, and files them with the auditor’s report within six months of its year end (Companies Law, Article 238).
- The small-company exemption from appointing an auditor does not apply to a foreign company (Article 19).
- Whether that covers a Saudi company with foreign ownership depends on its legal position, and we check it with you.
What usually worries you
Head office wants the report in English, by a fixed date.
The auditor’s report is issued in Arabic and English, and the written proposal fixes your parent company’s dates.
Saudi requirements are unclear to management abroad.
The first call covers what the branch or company must prepare: statements, the auditor’s report and the filing dates.
We need one person who answers us.
The partner leads the file and is your contact from the start until the report is issued.
What the audit focuses on
- Reporting packs and deadlines set by the parent company.
- Related-party transactions and balances with head office.
- Income tax and withholding tax in the statements.
- Foreign currency translation.
- Differences between Saudi-endorsed standards and the parent’s standards.
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
Is the report issued in English?
Yes, in Arabic and English.
Is a small branch exempt from audit?
The small-company exemption does not apply to a foreign company, and a branch files the auditor’s report with its statements.
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
- 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.