Audit Firms in KSA

Audit Firms in KSA

Saudi Arabia has turned into a business center over the last couple of years, which means that it is home to thousands of businesses, operating on all different levels and dealing with different activities. As a business owner, you are required to ensure:

  • Business operations runs smoothly and effectively
  • Departments and employees are doing their work to their best capabilities
  • Maintaining cross-functional cooperation with each other so as to achieve targets.

Saudi Arabia is one of the fastest-growing economies in the world and is slated to register substantial growth in the coming years. As a result, various new entities are setting up their operations in the country as well as the existing businesses are now in the mode of expansion. But during the process of setting up a business as well as undertaking its expansion, one essential aspect of business functioning needs to be taken care of and that is Auditing in KSA.

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Need for Audit Firms in KSA?

In order to conduct business legally in the nation, it is essential for businesses and their accounting reports to comply with the statutory guidelines of the government of the Kingdom of Saudi Arabia. The government and regulatory authorities have specified various standards that must be adhered to while conducting business in the country.

When it comes to business reports in the region, absolute accuracy is a pre-requisite. The government departments want the accounting reports of the businesses to reflect the true state of the business. Any inaccuracy can be considered as an attempt to misguide and will attract action from the relevant authorities. It is compulsorily instructed by the government regarding the requirement of audit for all businesses registered and operating here.

Accounting reports in KSA and records certified by an Auditor are considered accurate and ready to be shared with the public. Selection of an auditor has to be done during the annual meeting of the company with the appointment ranging between 3-5 years.

Why Aviaan Accounting?

At Aviaan Accounting, we have carved a distinct reputation for ourselves in Saudi Arabia. Based on our experience and expertise, we have been helping businesses in the region comply with government guidelines and ensure 100% accuracy and error-free in their business reports. It does not matter whether you are a big multinational or a small locally owned company; we have a team of experienced accounting professionals who can take care of all your needs. When it comes to auditing, our qualified chartered accountants work in close collaboration with your accounting department. We check each and every entry to understand if it has been treated according to the specified guidelines. Our chartered accountants have a collective experience of many years and have been working with some of the leading corporations in the region for the last many years. We have helped our clients ensure 100% compliance with government guidelines and avoid any penalties for non-compliance. When you avail of our services in KSA, you can accrue numerous benefits like: –

Audit Process

 

Audit Planning Client Understanding Risk Assessment Perform Tests of Controls Performing the Audit Audit Report
Research the audit scope before making a comprehensive audit plan Eliminating the risk of material misstatement in the financial statements Understanding the entity and its environment is primary to risk assessment Analysing the effectiveness of the system of controls used by the company in detecting or averting material misstatements Check whether the company’s accounting records are in compliance with the local and international regulations including IFRS Audit report reflects true and fair opinion on the financial statements
Maintaining Open Communications during  the Process Gather background information Identifying the relevant risks in the company Qualified opinion, if the auditor is not satisfied with the evidence or explanations
Conduct Process Walk-Throughs Understanding the environment Assess the probability of the misstatement in the records arising as a result of such risks Placing reliability on the systems of controls based on the efficiency of the control system in place Evidence, external confirmations, and internal controls are crucial for forming an auditor’s opinion.
Identify  Risks to the Organization, Process, or Function Obtain an understanding of the internal controls An Audit report could be considered as an appraisal of the company’s financial position that could be used by stakeholders
Obtain Data from reliable sources before starting fieldwork Identify the key areas that are prone to the risk of misstatements Action plan to address the risk to mitigate its effect on audit Weak controls warrant the use of substantive testing by auditor Use of sample check with ratios and comparisons for effective audit.

FAQs

As per the Commercial Companies Law, Statutory audit is mandatory for all companies. But the law is not the same for certain free zones. They have their own auditing requirement as per the applicable Free Zone Law.

It is important to engage an independent audit firm to ensure the objectivity and transparency of the auditing. In the absence of these, the evaluation of an auditor may be incorrect and not proper.

Certainly not! The internal audit report is used by the management, whereas external audit reports are required by stakeholders and creditors. Also, an internal audit examines risks with respect to internal controls laid by the company, whereas an external audit examines the complete financial position of a business.

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