The short answer
Entry Post is a licensed accounting and audit firm in Riyadh. It audits the financial statements of factories and industrial companies in Saudi Arabia, with the partner on the file, and issues the independent auditor’s report in Arabic and English. The Saudi Industrial Development Fund’s general loan requirements list audited financial statements for the last three years for the guarantor, and for the borrower if available.
Reviewed by Noura Alderaan, SOCPA Fellow (No. 1379) ·
Official sources: Saudi Industrial Development Fund: General Requirements for Loan Application ↗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
- Factories applying for industrial or bank finance.
- Industrial companies that have grown past the exemption tests.
- Factories that want production cost and inventory in order before the audit.
- Industrial companies changing auditor.
Why you need an audit
- The Saudi Industrial Development Fund’s general loan requirements list audited financial statements for the last three years for the guarantor, and for the borrower if available.
- 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.
- Partners or shareholders holding at least 10% can ask in writing for an auditor, even in an exempt company.
What usually worries you
The lender wants audited financial statements for more than one year.
We discuss the years needed and the state of the books, and the proposal states what can be done and how long it takes.
Inventory and production cost figures are not under control.
We attend the inventory count when it is significant, test cost allocation, and tell you what needs tightening.
We fear the audit will miss the loan application date.
The written proposal sets the timetable, and we ask for documents early so the work is not held up.
What the audit focuses on
- Production cost and overhead allocation.
- Inventory counts and valuation.
- Fixed assets and depreciation.
- Loans and their terms.
- Spare parts and raw materials.
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 attend the inventory count?
Yes. Attending the count is part of the audit when inventory is significant, and we agree the date in advance.
We need three years of audited statements. Is that possible?
We discuss the years needed and the state of the books, and the proposal states what can be done and how long it takes.
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
- Saudi Industrial Development Fund: General Requirements for Loan Application
- 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.