The short answer
Entry Post is a licensed accounting and audit firm in Riyadh. It audits the financial statements of holding companies, family groups and their subsidiaries in Saudi Arabia, with the partner on the file, and issues the independent auditor’s report in Arabic and English. The small-company exemption does not apply to a company that owns, or is a subsidiary of, another company, unless all of those companies are micro or small (Companies Law, Article 19).
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
- Holding companies with subsidiaries or associates.
- Family groups that want consolidated statements the partners can rely on.
- Partners asking for an auditor to be appointed.
- Groups preparing for a new investor or a restructuring.
Why you need an audit
- The small-company exemption does not apply to a company that owns, or is a subsidiary of, another company, unless all of those companies are micro or small (Companies Law, Article 19).
- Partners or shareholders holding at least 10% can ask in writing for an auditor, even in an exempt 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.
What usually worries you
The partners want figures they can all trust.
An independent auditor’s report, with the results presented clearly to the owners or the board.
Transactions between group companies are tangled.
We audit related-party transactions and balances between the companies, and the proposal lists the companies covered.
A partner has asked for an auditor and we don’t know the next step.
We explain what the law allows holders of at least 10%, and send a written proposal.
What the audit focuses on
- Consolidation and eliminating transactions within the group.
- Related-party transactions and their disclosure.
- Investments in subsidiaries and associates.
- Balances and loans between group companies.
- Partners’ current accounts.
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
Do you audit consolidated and separate statements together?
Yes. The proposal lists the companies covered and the statements needed for each.
A partner with 10% has asked for an auditor. What now?
The law lets holders of at least 10% ask in writing for an auditor. We explain the steps and send a proposal.
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.