Saudi Arabia

The legal and regulatory framework for accounting, auditing, and corporate reporting in the Kingdom of Saudi Arabia is established through the Companies Law issued by Royal Decree No. M/132 of 2022, the Law of the Profession of Accounting and Auditing issued by Royal Decree No. M/59 of 2021, and the Saudi Organization for Chartered and Professional Accountants Ordinance issued pursuant to Council of Ministers Resolution No. 416 of 2021. These laws establish the Saudi Organization for Chartered and Professional Accountants (SOCPA) as the national accounting and auditing standard-setter under the supervision of the Ministry of Commerce.

The financial reporting framework in Saudi Arabia differentiates between publicly accountable entities and other entities based on their public interest status and regulatory classification. Sector-specific reporting and regulatory requirements also apply to entities supervised by the Capital Market Authority (CMA) and the Saudi Central Bank (SAMA).

Publicly accountable entities, including listed companies, banks, insurance entities, and other regulated financial institutions, are required to apply International Financial Reporting Standards (IFRS Accounting Standards) as endorsed by SOCPA. SOCPA endorses IFRS Accounting Standards as issued by the International Accounting Standards Board with limited additional requirements and disclosures to address local legal and regulatory matters, including Zakat and certain Sharia-related considerations. SOCPA also issues supplementary standards and technical releases for matters not specifically addressed by IFRS Accounting Standards.

For non-publicly accountable entities, SOCPA adopted the IFRS for Small and Medium-sized Entities (IFRS for SMEs) effective January 2018. Limited modifications were introduced to reflect local legal and regulatory requirements. Small and medium-sized entities may also elect to apply full IFRS Accounting Standards as endorsed by SOCPA, provided the standards are applied in their entirety on an ongoing basis once elected.

Mandatory audits of financial statements are established under the Companies Law and related sectoral legislation for listed companies, regulated financial institutions, and other entities meeting prescribed thresholds.

The Law of the Profession of Accounting and Auditing and the SOCPA Ordinance establish SOCPA as the authority responsible for setting auditing and assurance standards in the jurisdiction under the supervision of the Ministry of Commerce. Audits are required to be conducted in accordance with International Standards on Auditing (ISA) as endorsed by SOCPA.

The accountancy profession in Saudi Arabia is regulated under the Law of the Profession of Accounting and Auditing issued by Royal Decree No. M/59 of 2021 and its implementing regulations. The Saudi Organization for Chartered and Professional Accountants (SOCPA) operates under the supervision of the Ministry of Commerce and is responsible for regulating the profession, setting accounting, auditing, quality management, and ethical requirements, administering professional examinations, delivering continuing professional education, and operating the quality assurance review system.

Recent regulatory amendments transferred the mandate for issuing accounting and auditing profession licenses from the Ministry of Commerce to SOCPA. SOCPA is therefore responsible for reviewing licensing applications and deciding on applications within the timeframe established in the amended implementing regulations.

Entry into the profession is regulated through SOCPA’s membership, examination, and licensing requirements. Candidates seeking the Certified Public Accountant designation must meet education and practical experience requirements, pass SOCPA’s professional examinations, and become members of SOCPA. SOCPA’s membership framework includes associate, professional, full, student, and honorary membership categories, with professional members required to comply with applicable laws and regulations, the professional performance quality control program, continuing professional education requirements, and annual membership obligations.

Continuing professional education requirements are established by SOCPA and apply to full members, licensed professionals, individuals licensed to perform Zakat and tax services, individuals who have passed the fellowship examination, and professionals working in accounting firms. Licensed full members are required to complete 65 continuing professional education points annually, while non-licensed full members, fellowship holders, and technical employees working in accounting firms are required to complete 50 points annually.

Investigation and discipline are established under the Law of the Profession of Accounting and Auditing and related regulations. SOCPA is responsible for identifying violations within its mandate and referring matters requiring legal or regulatory action to the competent authorities, while disciplinary decisions are carried out through the structures established under the law and Ministry of Commerce oversight.

Independent oversight of listed entity audits in Saudi Arabia is established under the Capital Market Law issued pursuant to Royal Decree No. M/30 of 2003. The Capital Market Authority (CMA) operates as the independent regulator of the capital market and is responsible for oversight of auditors and audit firms performing audits of entities regulated by the capital market framework, including listed companies.

The CMA is responsible for supervising compliance with applicable regulatory and reporting requirements for listed entities, overseeing audit quality relating to capital market participants, and taking regulatory actions within its mandate. The CMA is a member of the International Forum of Independent Audit Regulators.

In addition to the CMA’s oversight role for listed entities, the Law of the Profession of Accounting and Auditing issued by Royal Decree No. M/59 of 2021 establishes the Saudi Organization for Chartered and Professional Accountants (SOCPA) as the professional regulatory authority responsible for the regulation and oversight of auditors under the supervision of the Ministry of Commerce.

SOCPA is responsible for establishing and operating the quality assurance review system, setting auditing, quality management, and ethical standards, administering professional examinations and continuing professional education requirements, and overseeing compliance with applicable professional requirements. Recent amendments to the implementing regulations also transferred responsibility for issuing professional licenses for accounting and auditing activities from the Ministry of Commerce to SOCPA.

Saudi Organization for Chartered and Professional Accountants (SOCPA)

SOCPA was established in 1992 under the Certified Public Accountants Regulation issued by Royal Decree No. M/12 of 1991. SOCPA currently operates under the Saudi Organization for Chartered and Professional Accountants Ordinance issued pursuant to Council of Ministers Resolution No. 416 of 2021 and under the supervision of the Ministry of Commerce.

SOCPA is the mandatory professional accountancy organization for Certified Public Accountants and other regulated professional categories in Saudi Arabia. The organization is responsible for regulating and supporting the profession, including establishing accounting, auditing, quality management, and ethical requirements; administering professional examinations and certification programs; establishing continuing professional education requirements; approving practical training offices; and operating the quality assurance review system in the jurisdiction.

SOCPA also plays a central role in the adoption, translation, and implementation of international standards in Saudi Arabia. This includes endorsing International Financial Reporting Standards, International Standards on Auditing, International Standards on Quality Management, and the International Code of Ethics for Professional Accountants (including International Independence Standards), with limited modifications where necessary to reflect local legal and regulatory requirements.

In addition to its national regulatory responsibilities, SOCPA provides technical guidance, implementation support, professional training, publications, and awareness activities for members and stakeholders across the jurisdiction.

SOCPA is a member of the International Federation of Accountants and the Asian-Oceanian Standard-Setters Group.

The Law of the Profession of Accounting and Auditing requires the establishment of a mandatory quality assurance (QA) review system in Saudi Arabia. The Saudi Organization for Chartered and Professional Accountants (SOCPA) is responsible for establishing and operating the QA review system under the supervision of the Ministry of Commerce.

SOCPA’s quality control program requires firms to apply quality control standards issued by SOCPA and includes annual information reporting and periodic reviews. 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 for application in Saudi Arabia and published the related Arabic translations. SOCPA’s adopted quality standards are based on the International Auditing and Assurance Standards Board’s 2023–2024 Handbook, translated by SOCPA in March 2025.

The jurisdiction-level QA review system is operational for all mandatory audits and incorporates the relevant requirements of SMO 1.

International Standard on Quality Management 1 and International Standard on Quality Management 2 are adopted and effective in the jurisdiction.

Current Status: Adopted

Initial and continuing professional development requirements for professional accountants in Saudi Arabia are established under the Law of the Profession of Accounting and Auditing, the Saudi Organization for Chartered and Professional Accountants (SOCPA) Ordinance, and related SOCPA regulations. Responsibility for establishing and administering education and training requirements is shared among the Ministry of Education SOCPA.

Candidates seeking the Certified Public Accountant designation are required to hold at least a bachelor’s degree in accounting or an equivalent qualification recognized by the Ministry of Education, complete practical experience requirements, successfully pass SOCPA’s professional examinations, and fulfill membership requirements.

SOCPA establishes and administers continuing professional development requirements for members and licensed professionals. Licensed full members are required to complete 65 continuing professional education points annually, while non-licensed members and certain other regulated categories are required to complete 50 points annually.

In 2022, SOCPA launched a model accountancy curriculum for universities in Saudi Arabia developed with reference to the 2019 International Education Standards. SOCPA also reports that it completed a comprehensive review of the jurisdiction’s educational requirements against the revised 2019 International Education Standards and confirmed alignment with the requirements for entry, professional education, practical experience, assessment, and continuing professional development.

The jurisdiction-level framework incorporates the requirements of the International Education Standards for aspiring and professional accountants and is aligned with the requirements of SMO 2.

Current Status: Adopted

The Saudi Organization for Chartered and Professional Accountants (SOCPA) is the auditing standard-setter in Saudi Arabia under the supervision of the Ministry of Commerce. SOCPA requires the application of International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board for all mandatory audits in the jurisdiction.

SOCPA has adopted and translated the 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements for application in Saudi Arabia. Accordingly, the jurisdiction is assessed as Adopted.

SOCPA reviewed the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities and decided not to adopt it in Saudi Arabia.

Current Status: Adopted

The Law of the Profession of Accounting and Auditing issued by Royal Decree No. M/59 of 2021 and the Saudi Organization for Chartered and Professional Accountants Ordinance issued pursuant to Council of Ministers Resolution No. 416 of 2021 authorize the Saudi Organization for Chartered and Professional Accountants (SOCPA) to establish 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 (see SOCPA Ethics Code for Accountants).

Current Status: Adopted

Public sector financial reporting in Saudi Arabia is governed by the Government Tenders and Procurement Law, the Financial Regulations and Rules issued by the Ministry of Finance, and related public financial management reforms implemented under the supervision of the Ministry of Finance. The Ministry of Finance, through the Accrual Accounting Center, is responsible for establishing and implementing public sector accounting standards in the jurisdiction.

The Ministry of Finance has adopted accrual-basis International Public Sector Accounting Standards (IPSAS) for application by government entities in Saudi Arabia as part of the Kingdom’s public sector accounting transformation program. The implementation of accrual accounting and IPSAS forms part of broader public financial management reforms under Saudi Vision 2030.

Current Status: Adopted

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 requirements for professional conduct, violations, penalties, and disciplinary procedures for Certified Public Accountants.

Under the law, disciplinary matters are reviewed by a committee upon referral from the Saudi Organization for Chartered and Professional Accountants (SOCPA). The law provides for sanctions and enforcement measures, while SOCPA is responsible for monitoring professional compliance and referring relevant violations to the competent disciplinary or enforcement authorities.

The jurisdiction-level I&D system is operational for professional accountants and incorporates the relevant requirements of SMO 6.

Current Status: Adopted

The Saudi Organization for Chartered and Professional Accountants (SOCPA) is the accounting standard-setter in Saudi Arabia under the supervision of the Ministry of Commerce. SOCPA’s accounting standards page includes the documents of endorsement for international standards in Saudi Arabia and the accounting standards endorsed for application in the jurisdiction.

IFRS Accounting Standards are required for all publicly accountable entities. The IFRS Foundation jurisdiction profile states that Saudi Arabia incorporates IFRS Accounting Standards into law and regulation by reference to the standards endorsed by SOCPA, and that the endorsed standards are all IFRS Accounting Standards as issued by the International Accounting Standards Board, with additional SOCPA disclosure requirements for some standards.

SOCPA continues to adopt new and amended IFRS Accounting Standards through its formal endorsement process. In December 2024, SOCPA adopted IFRS 18 and IFRS 19, including related consequential amendments, for implementation in Saudi Arabia.

The jurisdiction-level framework requires IFRS Accounting Standards in effect as of the time of the assessment for publicly accountable entities and is aligned with the relevant requirements of SMO 7.

SOCPA has also adopted the IFRS for SMEs Accounting Standard for small and medium-sized entities, with limited additional disclosures to reflect Sharia and local law.

Current Status: Adopted

Relevant Organizations

Asian-Oceanian Standard-Setters Group (AOSSG)

Capital Market Authority (CMA)

IFRS Foundation Jurisdiction Profile – Saudi Arabia

Ministry of Finance – Kingdom of Saudi Arabia

Saudi Central Bank (SAMA)

Saudi Organization for Chartered and Professional Accountants (SOCPA)

Relevant Legislation

Capital Market Law issued by Royal Decree No. M/30 of 2003

Companies Law issued by Royal Decree No. M/132 of 2022

Law of the Profession of Accounting and Auditing issued by Royal Decree No. M/59 of 2021

Saudi Organization for Chartered and Professional Accountants Ordinance pursuant to Council of Ministers Resolution No. 416 of 2021

Relevant Publications

IFRS Foundation – Saudi Arabia IFRS Profile PDF

SOCPA Accounting Standards

SOCPA Auditing Standards

SOCPA Continuing Professional Education Requirements

SOCPA Digital Library

SOCPA Ethical Standards and Code of Ethics

SOCPA Fellowship Examination

SOCPA Peer Review Service

SOCPA Quality Control Program

SOCPA Translation and Adoption of the 2025 IESBA Handbook

SOCPA Translation Agreement for IFRS Sustainability Disclosure Standards