Article 19 of the Saudi Cooperative Societies Law

This article deals with the audit of cooperative societies, that is, the examination of their accounts by a qualified auditor.

It contains two provisions:

• The holder of the power: the Minister issues ministerial decisions regulating the audit process. Under Article 1, the Minister is the Minister of Social Affairs according to the definitions.
• The restriction: this is done subject to the laws on accountants in force, so the ministerial decisions do not conflict with the laws that govern the accounting and auditing profession.

The article itself does not state the details of the audit, such as who selects the auditor, his qualifications, the standards of examination, or its timing, but refers all of that to the ministerial decisions. Anyone who wants to know these details must refer to those decisions.

The importance of this article is that the audit is a tool for protecting the members' funds and ensuring transparency.

It is linked to Article 18, which gives the board of directors continuous supervision of the society's work and oversight of those who carry out management, and gives its chairman the right to sign and represent. It is also linked to Article 20, which requires the board of directors to submit the final account and the profit and loss account at the end of the financial year, and to present them with their supporting documents to the auditor at least one month before the general assembly meets.

Anyone who needs to know their society's audit obligations can consult a lawyer who specializes in commercial and corporate cases.