Article 10 of the Saudi Insurance Control Law

This article regulates the external audit of the accounts of insurance and reinsurance companies, in three paragraphs:

1. Appointment: the company's general assembly appoints two audit firms each year, from among the chartered accountants licensed to practice in the Kingdom, and sets their fees. The text requires two firms, not one.
2. Content of the report: in their annual report submitted to the general assembly, in addition to the details provided in the Companies Law, the two auditors state their opinion on two matters:
   • Whether the financial statements fairly present the company's financial position at the balance sheet date and its results of operations for the financial year.
   • Whether the preparation, presentation and audit of these statements are consistent with the accounting standards applied in the Kingdom.
3. Publication: the financial statements and the auditors' report must be published within 3 months of the date the company's financial year ends.

The aim of these provisions is transparency; shareholders, policyholders and the public can see the company's financial position within a set period. This article is linked to Article 11, which allows the supervisory body to ask the company at any time for any data it considers necessary, including a statement of the revenues and expenses of each branch of insurance and a statement of its investments. Anyone who needs to assess the obligations of a particular company should consult a lawyer who specializes in insurance and financial sector matters.