Legal accounting services in the Kingdom of Saudi Arabia have an essential role in the success of the investment projects that the Kingdom seeks to attract to it, and with the increase in investment opportunities provided by the Kingdom to investors, the role of these service providers comes to enhance the competitiveness of their clients in the Saudi market, and to contribute to building a stable and transparent economic environment on the Saudi territory.

The importance of forensic accounting services in Saudi Arabia

Forensic accounting services in Saudi Arabia are of great importance to companies, whether they are startups or not, for the following reasons:

• Ensure that companies comply with accounting and tax laws and regulations, and make the best use of them.
• Avoid penalties for violating accounting and tax regulations.
• Prepare company financial statements in accordance with accounting standards.
• Develop strategies to minimize tax liabilities within a legal framework and take advantage of the tax incentives offered by Saudi Arabia to businesses.
• Helping companies make the best investment decisions based on the companies’ financial information.
• Avoiding financial fraud that companies may be exposed to, while taking the appropriate legal measures.
• Developing thoughtful financial plans for companies in accordance with their goals and projects.
• Manage the company’s cash flow to avoid liquidity crises.
• Develop long-term strategic plans.
• Chartered accountancy services in Saudi Arabia contribute to the development of companies in line with Saudi Arabia’s Vision 2030.

Types of forensic accounting services in Saudi Arabia

There are many types of legal accounting services in Saudi Arabia that are provided to companies, the most prominent of which are:

• Evaluate the company’s financial statements and ensure that they are correct and comply with accounting standards.
• Prepare annual and quarterly company financial statements.
• Prepare tax returns.
• Establishing and registering companies.
• Corporate valuation and business restructuring.
• Comprehensive financial planning to achieve the company’s financial goals through budgeting, financing, investing, and developing business plans.
• Analyze corporate data and predict future performance.
• Rescheduling corporate debt and managing financial obligations.
• Improving companies’ credit performance to stabilize their financial stability.
• Optimize tax planning by identifying savings opportunities according to tax and accounting systems.
• Manage cash flow and short-term investments.
• Choosing the best financing decisions for companies, whether financing through banks or financial institutions.
• Maintain the company’s accounting books, ensuring the accuracy and integrity of financial records.

Chartered Accountant’s Obligations

Obligations of a chartered accountant according to theAccounting and Auditing Profession Law are as follows:

• The signature and authentication of the chartered accountant on the reports issued by him, and in a professional firm, the signature and authentication of the partner involved in preparing or supervising the report.
• The name of the chartered accountant must be the name of his headquarters, and he may take a creative name provided it is coupled with his personal name.
• Mention the accountant’s name and license number in documents, correspondence, and all reports and statements issued by the accountant.
• The chartered accountant must post the license issued to him in a clear and conspicuous place in his headquarters.
• Provide the Saudi Commission for Auditors and Accountants with the data related to its activity as specified in the regulation.
• Adherence to the rules, ethics, and behavior of the legal accounting profession, and to all approved technical and accounting standards.
• Keeping business documents and copies of reports and financial statements as specified by the regulations for at least 10 years from the date of issuance of the reports for each financial year audited by the Chartered Accountant.
• The Chartered Accountant shall provide the Authority with the reports prepared and the financial statements they have audited, whenever it requests it and by the means it specifies.
• Employ a specific number of Saudis as determined by the regulation, and in accordance with the labor law.
• Adhere to the number of hours of supervision by the chartered accountant for each audit for which a report is issued.

Duties of a Chartered Accountant

According to the Accounting and Auditing Profession Law, the duties of a chartered accountant include the following:

• Refrain from auditing the accounts of companies or organizations in which he has an interest, whether this interest is direct or indirect, in accordance with the regulations.
• Not exceeding the annual audit threshold for listed joint stock companies specified by the Capital Market Authority or unlisted companies specified by the Board.
• Refrain from disclosing information about its customers or using it for its own benefit, except with the customer’s express consent or request from the competent official authorities.
• The chartered accountant does not review the accounts of shareholding companies, banks and public authorities before 5 years have passed since he obtained his license to practice the profession.
• Inform the Authority and its clients of his suspension or suspension from practicing the profession within 30 days from the date of the suspension or suspension, whether the suspension or suspension is temporary or final, and the license to practice the profession shall be revoked in case of final suspension or suspension for a period exceeding two years.

The duties of a chartered accountant if he or she stops practicing

If a chartered accountant stops practicing the profession permanently or for a period that may harm his clients or third parties, he must comply with the following procedures within 30 days from the date of cessation:

1- Notify the Saudi Commission for Auditors and Accountants of the reasons for his/her suspension from practicing the profession and the duration of this suspension.

2- Informing the Authority of his services that will be affected by the period of his suspension or cessation of practice, and the measures that must be taken to preserve the rights of clients, in addition to the need for him to coordinate with the Authority on how to address any effects that may result from his suspension or cessation of practicing the profession of chartered accountancy.

3- The partners in providing legal accounting services in the Kingdom of Saudi Arabia through a professional firm shall, when one of the partners is permanently suspended or suspended from practicing the profession, take the necessary statutory procedures in accordance with the provisions of the Professional Companies Law, and inform the Authority of the procedures followed to assign the work of the suspended or suspended partner from practicing the profession of legal accounting to his other partners who are licensed to practice the profession.

4- If a part-time licensee wishes to stop practicing the profession for a temporary period of time, the period of suspension must not exceed six months, during the entire period in which he is allowed to practice the profession of chartered accountancy on a part-time basis.

Requirements for obtaining a chartered accountant’s license

It is not permissible to practice the profession of legal accounting or provide legal accounting services in the Kingdom of Saudi Arabia without obtaining a license from the Saudi Commission for Auditors and Accountants, and the conditions for obtaining a legal accountant’s license differ according to whether the accountant is full-time or part-time, which we will explain in detail in the following lines.

1- License requirements for a full-time accountant to practice the profession

• Have Saudi nationality.
• The perfection of eligibility.
• A university degree or any higher qualification in accounting or in one of the specializations of administrative sciences or its branches.
• The license applicant must complete 21 hours in accounting or its branches or what the Authority considers equivalent.
• Pass the tests specified by the organization.
• Registration of the license applicant for professional membership in the Authority.
• The license applicant must have at least one year of experience in accounting work in one of the offices and companies of legal accounting services in the Kingdom of Saudi Arabia or in government agencies, joint stock companies and other establishments.
• The applicant must be of good conduct.
• The license applicant has not been convicted of a legal limit or a crime against honesty or honor (unless he has been rehabilitated).
• No disciplinary decision of dismissal from government service has been issued against the license applicant (unless 3 years have passed since this decision was issued).

2- License conditions for part-time accountants to practice the profession

• The applicant must be of Saudi nationality in addition to his/her full eligibility.
• The license applicant must have a university degree or a higher qualification in the field of accounting or in one of the disciplines of administrative sciences or its branches.
• The license applicant must complete 21 hours in accounting or one of its branches, or what the Authority considers equivalent.
• Passing the professional tests set by the Authority.
• Registration as a member of a professional body.
• He must have at least one year of experience in accounting work in an accounting office or firm, or in government agencies or joint stock companies.
• Good behavior.
• The applicant has not been convicted of a legal limit or a crime against honor or honesty (unless he has been rehabilitated).
• No disciplinary decision has been issued to dismiss the license applicant from government service (unless three years have passed since this decision was issued).
• The period of practicing the accounting profession on a part-time basis should not exceed three years.
• Not to provide forensic accounting services in the Kingdom of Saudi Arabia for joint stock companies, banks, finance companies, public bodies and institutions.

The practice is limited to the following:

• All work related to recognizing, recording and measuring financial information.
• Prepare reports of all kinds, whether for internal or external purposes.
• Prepare planning budgets.
• Analysis of deviations.
• Designing systems for financial control.

Saudi Commission for Auditors and Accountants

Saudi Commission for Auditors and Accountants It is a professional body whose role is to supervise and develop the accounting and auditing profession in the Kingdom of Saudi Arabia, in addition to developing and supporting all those related to business, whether individuals or institutions, to protect investors and users of financial statements.

Tasks of the Commission

The tasks of the Saudi Organization for Auditors and Accountants are summarized in the following tasks that will develop the statutory accounting services in the Kingdom of Saudi Arabia:

• Regulate and supervise the chartered accountancy profession.
• Adoption and development of statutory accounting standards.
• Qualifying practitioners, training them and approving professional exams for professional certifications.
• Promote the profession of chartered accountancy and increase public confidence in it.
• Supporting the delivery of forensic accounting services in Saudi Arabia to keep pace with the Kingdom’s 2030 economic vision.

Saudi Arabia’s Economic Vision 2030

Saudi Arabia’s Vision 2030 aims to achieve a vibrant society by providing well-being, prosperity, a healthy and sustainable lifestyle, effective healthcare systems for citizens, an ambitious and responsible nation run by a high-performing and accountable government at all levels, and finally, Vision 2030 aims to achieve a thriving economy that supports small, medium and large businesses and invests in education to provide a bright future for all who live in the Kingdom of Saudi Arabia.

Chartered accountancy services in Saudi Arabia have a key role to play in achieving the prosperous economy of Vision 2030, which we explain below.

Chartered Accountancy Services in Saudi Arabia and the Booming Economy

Saudi Arabia’s Vision 2030 aims to reach a prosperous economy by following deliberate and specific steps, and legal accounting services in the Kingdom of Saudi Arabia have an effective role in achieving this vision, as the use of specialists in the field of legal accounting services in the Kingdom of Saudi Arabia is essential for everyone who wishes to benefit from the opportunities offered by the Kingdom to investors, whether local or foreign, and among the most important steps taken in order to achieve the 2030 economic vision:

• Creating job opportunities for citizens.

• Active participation of the nation’s youth in all sectors.
• Prioritize creative and talented people from the country.
• Support a culture of innovation and perseverance.
• Provide unique opportunities for growth.
• Attracting the best international expertise.
• Providing an attractive competitive environment for business and here the importance of forensic accounting services in Saudi Arabia stands out, as it plays a key role in supporting businesses and increasing their competitiveness.
• Developing investments and supporting local companies in increasing their exports.
• Providing the right environment for growth by restructuring economic cities and creating special zones.
• Exploiting the country’s great potential, as Saudi Arabia is located between three continents, so the vision aims to make the Kingdom a major center for international trade.

The Kingdom is also pursuing the 2030 Economic Vision through specific programs such as the Fiscal Sustainability Program and the Public Investment Fund Program.

1- Financial Sustainability Program

It is a program that seeks to achieve structural reforms in public finance development policies, so that a prosperous financial system can be achieved through the following steps:

• Maintaining the sustainability and strength of the Saudi economy through a medium-term fiscal planning mechanism.
• Developing public finances by establishing auxiliary entities such as the Spending Efficiency and Government Projects Authority, the National Debt Management Center, and the Non-Oil Revenue Development Center.
• Achieving fiscal balance by creating a balanced and adaptable financial system.
• Achieving long-term economic sustainability by strengthening the construction of new fiscal policies.

2- Public Investment Fund Program

The Public Investment Fund (PIF) program was launched to achieve Saudi Arabia’s Vision 2030 by contributing to the diversification of the local economy and strengthening the investment fund’s position as a global force:

• Growing the Public Investment Fund’s assets to become one of the world’s largest sovereign wealth funds.
• Diversify the Saudi non-oil economy by opening up various promising, innovative and creative projects.
• Create ambitious job opportunities in all sectors.
• Supporting the private sector and its prosperity.
• Localization of technologies and knowledge.
• Building strategic economic partnerships.

Advantages of investing in Saudi Arabia

The Kingdom of Saudi Arabia is working to attract local and foreign investors to it, through the great opportunities and facilities it offers them, and one of the most important and prominent facilities is the facilities that are provided in the field of companies and their establishment, so legal accounting services in Saudi Arabia play an important and essential role in the success of investments on Saudi territory, and one of the advantages of investing in the Kingdom:

• Supporting investors to ensure the success of their experiences in Saudi Arabia.
• Opening up new investment opportunities for investors that were previously unavailable to them.
• Providing suitable investment opportunities for each investor according to their field.
• Equality between foreign and local investors.
• Administrative and credit facilities.
• Customs tax exemptions.
• Legislative guarantees to protect foreign investments.
• Fairness in commercial dispute resolution.

Investment requirements in Saudi Arabia

In order to start investing on Saudi soil, the following are required:

• Investment License: This license is issued by the Ministry of Investment.
• Sign the company’s articles of incorporation: The authorities responsible for signing the articles of incorporation are the Ministries of Justice and Trade and Industry.
• Commercial register: Issued through the Ministry of Commerce and Industry.
• Opening the establishment’s files: This is done through three entities: the General Authority for Zakat and Income, the Ministry of Human Resources and Social Development, and the General Organization for Social Insurance.
• Issuance of the General Manager Visa: This visa is issued through the Ministry of Human Resources and Social Development.

Forensic accounting services in Saudi Arabia save the investor from the above procedures, as they can perform them on his behalf.

Thus, we have finished explaining the importance of legal accounting services in Saudi Arabia for companies, and for more information, you can contact the Invest Global team specialized in providing various financial services suitable for various needs and goals.