Article 47 of the Saudi Law of Universities
المادة 47 من نظام الجامعات · الفصل الثالث عشر: النظام المالي للجامعة
The Board of Trustees, on the nomination of the university president, appoints one or more external auditors with the rights and duties of an external auditor of a joint-stock company, without prejudice to the oversight of the competent body.
Official text (Arabic)
This article has not been amended since the law was issued.
مع عدم الإخلال بمراقبة الجهة المختصة، يعين مجلس الأمناء -بناءً على ترشيح من رئيس الجامعة- مراجعًا خارجيًا أو أكثر لحسابات الجامعة ممن تتوافر فيهم الشروط النظامية، وتكون لهم حقوق المراجع الخارجي في الشركات المساهمة، وعليهم واجباته.
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 47 explained in plain English
This article adds independent professional oversight of the university's accounts through the external auditor.
First: appointment
- The Board of Trustees appoints the auditor.
- On the nomination of the university president.
- There may be one or more auditors.
Second: conditions
The auditor must be a person who meets the statutory conditions. The article does not state these conditions; they are found in the relevant laws.
Third: rights and duties
The auditors have the rights of an external auditor in joint-stock companies and are subject to his duties. The text refers, in defining their position, to what the auditor of joint-stock companies enjoys and is bound by, without detailing it.
Fourth: relationship to government oversight
This is without prejudice to the oversight of the competent body. Appointing an external auditor does not replace government oversight or cancel it.
This article is linked to Article 46, which provides that the General Auditing Bureau reviews the university's final account under the rules for supervising public companies and institutions. The university is thus subject to two parallel kinds of oversight.
Article 48 then brings a different subject: the university's creation of endowments with independent legal personality under the supervision of the Board of Nazirs, and the permission for the university and its endowments to establish companies or take part in them under the statutory procedures.
Anyone working in auditing who wants to know his obligations when auditing a university's accounts may consult a lawyer specializing in administrative cases.
Practical example
The president of a university nominated a licensed accounting firm to audit the university's accounts, and the Board of Trustees issued a decision appointing it. Under this article, the firm has the rights of an external auditor in joint-stock companies and is subject to his duties, and the General Auditing Bureau continues to exercise its oversight of the university.
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 47 of the Saudi Law of Universities
Who appoints the external auditor of the university's accounts?
The Board of Trustees, on the nomination of the university president.
What are the rights of the university's external auditor?
He has the rights of an external auditor in joint-stock companies and is subject to his duties.
Does the external auditor replace the oversight of the competent body?
No. The article states that the appointment is without prejudice to the oversight of the competent body.
More articles on University Budget and Audit of Its Accounts
- Article 45
Each university has an independent annual budget, adopted by decision of the Board of Trustees under the general rules approved by the Universities Affairs Council, after coordination with the relevant bodies.
يكون لكل جامعة ميزانية سنوية مستقلة، ويصدر بإقرارها قرار من مجلس الأمناء وفق القواعد العامة التي يقرها مجلس شؤون الجامعات، بعد التنسيق مع الجهات ذات العلاقة.
- Article 46
The General Auditing Bureau reviews the university's final account under the rules for supervising public companies and institutions.
يتولى الديوان العام للمحاسبة -وفق قواعد مراقبة الشركات والمؤسسات العامة- إجراء المراجعة للحساب الختامي للجامعة.
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.