Article 12 of the Saudi Insurance Authority Statute
المادة 12 من تنظيم هيئة التأمين
The article requires the board to appoint one or more licensed external auditors to audit the Authority's accounts, without prejudice to the jurisdiction of the General Auditing Bureau, which receives a copy of the report once it is approved.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال باختصاص الديوان العام للمحاسبة، يعين المجلس مراجع حسابات خارجيًّا (أو أكثر) من المرخص لهم بالعمل في المملكة، لتدقيق حسابات الهيئة ومعاملاتها وبياناتها وميزانيتها السنوية وحسابها الختامي، ويحدد المجلس أتعابه. ويرفع تقرير مراجع الحسابات إلى المجلس، ويزود الديوان العام للمحاسبة بنسخة منه بعد اعتماده.
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 12 explained in plain English
This article regulates the external audit of the Insurance Authority's accounts.
1. Appointment: The board appoints one external auditor or more from among those licensed to work in the Kingdom, and sets the auditor's fees.
2. Scope of the audit: The Authority's accounts, transactions, data, annual budget and final account.
3. The report:
- The auditor's report is submitted to the board.
- The General Auditing Bureau is provided with a copy of it after it is approved.
4. Oversight by the Bureau: The article begins with the phrase "without prejudice to the jurisdiction of the General Auditing Bureau", meaning the external audit is in addition to the Bureau's oversight and does not replace it.
Note that the copy the Bureau receives is the report after it is approved, not the draft. The article does not set the auditor's term of appointment or how the auditor is chosen.
This article connects to Article 11, which requires the annual final account to be submitted to the Prime Minister within 90 days of the end of the fiscal year, with a copy to the General Auditing Bureau, and to Article 13, which requires an annual report on achievements, difficulties and proposals within 90 days of the start of each fiscal year.
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 12 of the Saudi Insurance Authority Statute
Who appoints the Insurance Authority's auditor?
The Authority's board, from among those licensed to work in the Kingdom, and it sets the auditor's fees.
Does the auditor replace the General Auditing Bureau?
No. The appointment is without prejudice to the Bureau's jurisdiction, and the Bureau is provided with a copy of the report after it is approved.
More articles on Insurance Authority Resources and Budget
- Article 9
The article sets the Authority's resources: fees for its services, investment returns, gifts and donations the board accepts, and fines on violators, and regulates its accounts at the central bank and banks.
1- تتكون موارد الهيئة من الآتي: أ- المقابل المالي الذي تتقاضاه نظير الخدمات والأعمال التي تقدّمها. ب- عوائد استثمارات مواردها المالية المتاحة. ج- ما يقبله المجل
- Article 10
The article gives the Authority an independent annual budget approved under the legal procedures, with any surplus transferred to the Ministry of Finance after expenses, a general reserve of at least twice its expenses, and the state's fiscal year as its fiscal year.
1- تكون للهيئة ميزانية سنوية مستقلة من مواردها المالية، تقدم إلى وزارة المالية وتعتمد وفقاً للإجراءات النظامية المتبعة، ويحوَّل الفائض من مواردها المالية إلى وز
- Article 11
The article requires the Authority to submit its annual final account to the Prime Minister within 90 days of the end of the fiscal year, and to give the General Auditing Bureau a copy.
ترفع الهيئة إلى رئيس مجلس الوزراء حسابها الختامي السنوي خلال (تسعين) يومًا من تاريخ انتهاء السنة المالية، ويُزود الديوان العام للمحاسبة بنسخة منه.
- Article 13
The article requires the Authority to submit an annual report to the Prime Minister within 90 days of the start of each fiscal year, covering its achievements, difficulties and proposals.
ترفع الهيئة إلى رئيس مجلس الوزراء خلال (تسعين) يومًا من بداية كل سنة مالية تقريرًا سنويًا عما حققته من إنجازات خلال السنة المنقضية وما واجهها من صعوبات وما تراه
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.