The Saudi Organization for Chartered and Professional Accountants (SOCPA)

The Saudi Organization for Chartered and Professional Accountants (SOCPA) has direct responsibility for establishing and operating the quality assurance (QA) review system in Saudi Arabia under the supervision of the Ministry of Commerce. SOCPA’s Quality Control Program is designed to monitor compliance with applicable laws, accounting and auditing standards, professional rules, and other requirements issued by competent authorities. Reviews are conducted at least every three years for firms auditing public companies, banks, and independent governmental organizations, and every five years for firms auditing other companies and establishments.

SOCPA has adopted the International Standards on Quality Management (ISQM 1 and ISQM 2) and ISA 220 (Revised) and continues to support implementation through guidance, training, and technical resources. In 2024, SOCPA issued a guidance manual to support firms in implementing ISQM 1, with practical assistance focused on quality management systems for audits, reviews, and assurance engagements.

SOCPA also continues to provide practice support to firms through its peer review service, launched in 2023, which enables firms to obtain an independent assessment of their quality management systems and professional service methodologies before a formal QA review.

SOCPA’s ongoing operation of the QA review system, adoption of the relevant quality management standards, and continued support to firms demonstrate sustained fulfillment of the requirements of SMO 1.

Current Status: Sustain

The Saudi Organization for Chartered and Professional Accountants (SOCPA) has shared responsibility for initial and continuing professional development requirements for professional accountants in Saudi Arabia. The Law of the Profession of Accounting and Auditing and SOCPA’s regulations establish requirements for professional examinations, practical experience, membership, and continuing professional education, while the Ministry of Education determines degree equivalency requirements.

SOCPA administers the fellowship examination, which covers accounting, auditing, Zakat and tax, jurisprudence, and business law, and establishes the requirements for professional membership. SOCPA’s fellowship eligibility requirements include accounting qualifications, other relevant university qualifications with prescribed accounting credit hours, or equivalent qualifications recognized by SOCPA.

SOCPA continues to support education and implementation through professional examinations, training programs, guidance to universities, and continuing professional education. In 2022, SOCPA launched a model accounting curriculum to support universities in aligning study plans with labor market needs and professional examination requirements.

SOCPA also maintains continuing professional education requirements for members and regulated professionals. Licensed full members are required to complete 65 points annually, while non-licensed full members, individuals who have passed the fellowship examination but do not hold SOCPA membership, and technical employees working in accounting firms are required to complete 50 points annually.

SOCPA has reviewed the jurisdiction’s education requirements against the International Education Standards and continues to monitor developments through its education-related activities. Its ongoing role in professional examinations, curriculum development, practical experience, continuing professional education, and member support demonstrates sustained fulfillment of SMO 2.

Current Status: Sustain

The Saudi Organization for Chartered and Professional Accountants (SOCPA) has direct responsibility for adopting auditing and assurance standards in Saudi Arabia under the supervision of the Ministry of Commerce. SOCPA adopts International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board, with limited local additions that do not change the requirements of the standards. SOCPA’s current adopted auditing standards are aligned with the 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements.

SOCPA continues to monitor new and revised IAASB pronouncements and support implementation through Arabic translations, technical guidance, training, publications, and member communications. Recent implementation support includes updated guidance on independent auditor reports to reflect the new Companies Law, a 2025 training programs guide covering accounting and auditing initiatives, and a 2026 practice guide on the auditor’s responsibilities relating to fraud in an audit of financial statements.

SOCPA also reviewed the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities and decided not to adopt it in Saudi Arabia following public consultation. This does not affect SOCPA’s fulfillment of Statement of Membership Obligations 3.

SOCPA’s ongoing adoption of IAASB pronouncements, translation activity, technical guidance, training, and implementation support demonstrate sustained fulfillment of SMO 3.

Current Status: Sustain

The Saudi Organization for Chartered and Professional Accountants (SOCPA) has direct responsibility for setting ethical requirements for professional accountants in Saudi Arabia under the supervision of the Ministry of Commerce. SOCPA has adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants for application in the jurisdiction.

SOCPA has issued the Arabic translation of the 2025 Handbook of the Code and continues to monitor and adopt new and revised IESBA pronouncements. Recent updates include SOCPA’s adoption of the tax planning revisions to the Code.

SOCPA supports implementation by making the Code and related professional standards available through its website and digital library, communicating updates to members, and providing training and technical resources.

SOCPA’s ongoing adoption, translation, communication, and implementation support for ethical requirements demonstrate sustained fulfillment of SMO 4.

Current Status: Sustain

The Ministry of Finance is responsible for public sector accounting reform and implementation of accrual-basis International Public Sector Accounting Standards (IPSAS) in Saudi Arabia through the Accrual Accounting Center and related public financial management initiatives. The Saudi Organization for Chartered and Professional Accountants (SOCPA) continues to support these reforms through technical participation, awareness activities, and translation support.

SOCPA participates in government-led efforts relating to IPSAS implementation and continues to monitor developments issued by the International Public Sector Accounting Standards Board. Saudi Arabia’s transition to accrual accounting remains a key component of broader public financial management reforms under Saudi Vision 2030.

SOCPA’s continued participation in public sector accounting reform activities, support for IPSAS implementation, and promotion of international public sector accounting standards demonstrate sustained fulfillment of SMO 5.

Current Status: Sustain

The investigation and discipline (I&D) system for professional accountants in Saudi Arabia is established under the Law of the Profession of Accounting and Auditing issued by Royal Decree No. M/59 of 2021. The law establishes professional conduct requirements, violations, penalties, and disciplinary procedures for Certified Public Accountants.

The Saudi Organization for Chartered and Professional Accountants (SOCPA) supports the operation of the I&D system by monitoring compliance with professional requirements, conducting preliminary investigation procedures, and referring matters to the competent disciplinary or enforcement authorities where appropriate. Recent public notices indicate that SOCPA continues to identify violations and refer cases involving unauthorized or non-compliant professional services to the relevant authorities.

The law provides for a range of sanctions, including reprimand, warning, suspension from practice, removal from the Certified Public Accountant register, and publication of disciplinary decisions. SOCPA has previously assessed the jurisdiction-level I&D system as aligned with the requirements of SMO 6 and continues to support the system through monitoring, referrals, and member communication.

SOCPA’s ongoing role in supporting compliance monitoring, preliminary investigation, referrals, and communication of professional obligations demonstrates sustained fulfillment of SMO 6.

Current Status: Sustain

The Saudi Organization for Chartered and Professional Accountants (SOCPA) has direct responsibility for adopting accounting standards in Saudi Arabia under the supervision of the Ministry of Commerce. SOCPA has adopted IFRS Accounting Standards as issued by the International Accounting Standards Board for publicly accountable entities, with additional disclosure requirements in some standards to reflect local legal and regulatory considerations.

SOCPA continues to monitor new and revised IASB pronouncements through its formal endorsement process. Recent developments include the adoption of IFRS 18 and IFRS 19 for implementation in Saudi Arabia.

SOCPA supports implementation through Arabic translations, technical guidance, standards updates, training, publications, and member communications. SOCPA also signed an agreement with the IFRS Foundation to translate International Sustainability Standards issued by the International Sustainability Standards Board, including IFRS S1 and IFRS S2.

SOCPA’s ongoing adoption of IFRS Accounting Standards, endorsement activity, translation work, implementation support, and participation in international standard-setting activities demonstrate sustained fulfillment of SMO 7.

Current Status: Sustain