External Auditing
It is a service expressed through the accuracy and transparency of the financial results at the end of the year, and whether they present a true and fair view of the entity’s operations, while ensuring the application of approved procedures and regulations. This helps investors and stakeholders make informed decisions and future directions, and avoid risks amid economic changes.
We, Fahd bin Abdulaziz Al-Mousa and Abdullah bin Mohammed Al-Tamimi Company (“we” or “MTC”), provide the highest quality external accounting audit services through a specialized and professional team.
What the service covers
- Annual audit of financial statements under the International Standards on Auditing as endorsed in the Kingdom by SOCPA, with issuance of the auditor’s report.
- Limited review of interim financial statements where required.
- First-year audits for newly formed entities, including establishing opening balances.
- Audits of previously unaudited entities, addressing the effect of unaudited periods on opening balances.
- Audits of associations and non-profit foundations under the non-profit standards.
- Special purpose reports and agreed-upon procedures where a specific party requires them.
Is your company required to have an auditor?
The Companies Law — Royal Decree No. M/132, in force since 19 January 2023 — requires every company to have an auditor licensed to practise in the Kingdom. The exemption is an exception for micro and small enterprises, and applies where two of three criteria are met: annual revenue not exceeding SAR 10 million, total assets not exceeding SAR 10 million, and no more than 49 employees.
The exemption is lost regardless of size where the company is listed, issues debt instruments, or a partner holding the prescribed percentage requests an appointment. And exemption from appointing an auditor is not exemption from preparing and filing financial statements.
What you receive
- A signed auditor’s report, suitable for filing and for banks and contracting parties.
- Final financial statements with the accompanying notes.
- A management letter setting out internal control observations identified during the audit and how to address them.
- A schedule of proposed adjusting entries and their effect on results and equity.
Why the timing of appointment matters
The statutory sequence is fixed: the ordinary general assembly meets within the six months following year end, the auditor must be given access to records at least 45 days before that meeting, and the financial statements must be filed within the same six-month period.
Working backwards for a company with a 31 December year end: if the auditor has not been given access to the records by mid-May, the statutory sequence can no longer be completed without pressure. We therefore normally begin before the financial year closes — most causes of a qualified opinion are capable of remedy if identified early enough.
Our approach
- Understanding the entity and its environment, and identifying risks of material misstatement.
- Evaluating internal control over the significant cycles: revenue, procurement, inventory, payroll and cash.
- Substantive and analytical procedures, with confirmations and attendance at inventory counts on the count date.
- Assessing going concern and the adequacy of disclosure about it.
- Consistency with returns filed with ZATCA — both authorities see the same figures.
- Engagement quality review before the report is issued, under our quality management system.
Related detailed guides
- When must a Saudi company appoint an auditor? Exemption thresholds explained
- Types of auditor opinion — qualified, adverse and disclaimer
- Filing financial statements on Qawaem — deadlines, timeline and documents
- Audit, review, compilation or agreed-upon procedures — which report you need and who accepts it
- Preparing your business for its first audit — timeline and document list
- The IFRS for SMEs Standard — who applies it and what changed in the third edition
- Appointing, removing and replacing the auditor under the new Companies Law
- The management letter and internal control findings after the audit
- CPA-certified financial statements: what banks and agencies actually require
- A CPA for contracting companies: classification, guarantees and long-term contracts
- Auditing non-profit associations and foundations: what the law requires
Frequently asked questions
How long does an audit take?
It depends on the size of the entity, the quality of its books, the number of locations and how ready the documentation is. The single largest cause of delay is starting work on books that have not been closed.
My entity has never been audited — can we start?
Yes. Opening balances must be addressed first, and where documentation for prior periods is unavailable, the effect on the report is stated explicitly.
Do you audit associations and non-profit foundations?
Yes, under the non-profit standards issued by SOCPA, whose amendments apply to annual periods beginning on or after 1 January 2025.