Article 7 of the Saudi Accounting and Auditing Profession Law
المادة 7 من نظام مهنة المحاسبة والمراجعة
The article lists eight obligations of the certified accountant, including signing his reports, adopting his personal name for his office, observing standards, keeping documents for 10 years, and employing a proportion of Saudis.
Official text (Arabic)
This article has not been amended since the law was issued.
على المحاسب القانوني الالتزام بما يلي:
1- التوقيع والمصادقة على التقارير الصادرة منه، ويكون التوقيع والمصادقة في الشركة المهنية من الشريك الذي شارك في إعداد التقرير أو أشرف على إعداده.
2- أن يتخذ اسمه الشخصي اسماً لمقره الرئيس، ويجوز له أن يتخذ اسماً مبتكراً على أن يكون مقروناً باسمه الشخصي، وأن يذكر اسمه ورقم الترخيص في وثائقه ومراسلاته وكل ما يصدر عنه من تقارير وبيانات، ويجب عليه أن يضع الترخيص الصادر له في مكان بارز في مقره.
3- أن يزود الهيئة بالبيانات اللازمة عن نشاطه وفق ما تحدده اللائحة.
4- التقيد بقواعد المهنة وسلوكها وآدابها، وبمعايير المحاسبة والمراجعة، والمعايير الفنية، التي يعتمدها المجلس.
5- حفظ مستندات العمل ونسخ من التقارير والقوائم المالية بوسائل الحفظ اللازمة وفق ضوابط تحددها اللائحة، وذلك لمدة لا تقل عن (عشر) سنوات من تاريخ إصدار تقريره عن كل سنة مالية يراجعها.
6- تزويد الهيئة -كلما طلب منه ذلك- بالقوائم المالية التي راجعها والتقارير التي أعدها بالوسيلة التي تحددها.
7- توظيف نسبة محددة من السعوديين من مجموع عامليه الفنيين وفقاً لما تحدده اللائحة، وبما يتماشى مع نظام العمل والقرارات ذات العلاقة به.
8- الالتزام بالنسبة التي تحددها اللائحة لعدد ساعات إشرافه على كل عملية مراجعة أصدر تقريراً في شأنها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 7 explained in plain English
This article gathers the basic professional duties of the certified accountant, which are eight:
- Signing and certifying the reports he issues. In a professional company, the partner who took part in preparing the report or supervised its preparation signs and certifies it.
- Name and license: to adopt his personal name as the name of his main office (he may have a coined name provided it is accompanied by his personal name), to state his name and license number in his documents, correspondence, reports and statements, and to display the license in a prominent place in his office.
- Providing the Authority with data on his activity as the Regulations specify.
- Adhering to the rules, conduct and ethics of the profession, and to the accounting and auditing standards and the technical standards adopted by the Authority's board of directors.
- Keeping work documents and copies of reports and financial statements according to the controls of the Regulations, for a period of no less than 10 years from the date he issues his report for each financial year he audits.
- Providing the Authority, whenever it asks, with the financial statements he audited and the reports he prepared, by the means it specifies.
- Employing a proportion of Saudis of his total technical staff as the Regulations specify, in line with the Labor Law and the related decisions.
- Complying with the proportion of supervision hours that the Regulations specify for each audit engagement on which he has issued a report.
Note that the article refers many details to the Regulations, such as the proportion of Saudis, the proportion of supervision hours, and the controls for keeping documents, and does not state their figures. These obligations are complemented by what Article 8 prohibits to the certified accountant, such as auditing the accounts of an entity in which he has an interest, or disclosing his clients' information. Anyone who needs to assess their compliance with these duties is advised to consult a lawyer specializing in commercial and corporate cases.
Practical example
An accounting office in Khobar issued an audit report for a company for its financial year. The report must be signed by the partner who supervised its preparation, and the office must keep the work documents and a copy of the report for no less than 10 years from the date the report was issued, and provide them to the Authority if it asks for them.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 7 of the Saudi Accounting and Auditing Profession Law
How many years must a certified accountant keep documents?
For no less than 10 years from the date he issues his report for each financial year he audits.
Who signs the audit report in a professional company?
The partner who took part in preparing the report or supervised its preparation.
Can an accounting office use a trade name?
The accountant may have a coined name provided it is accompanied by his personal name.
What Saudization proportion is required in accounting offices?
The article does not specify the proportion; it refers it to the Regulations, in line with the Labor Law and the related decisions.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.