Law of Chartered Accountants

The Law of Chartered Accountants
Royal Decree No. M/12 dated 13/05/1412 AH

WITH THE HELP OF ALMIGHTY ALLAH,
WE, FAHD BIN ABDULAZIZ AL-SAUD, THE KING OF THE KINGDOM OF SAUDI
ARABIA,
After reviewing the Articles (19) and (20) of the Law of the Council of Ministers of Saudi
Arabia issued upon the Royal Decree no. (38) dated 22/10/1377H (corresponding to
12/5/1958),
And having reviewed the law of Chartered Accountants issued by the Royal Decree No. M/43
dated 13/07/1394 AH, and its amendments,
And having reviewed the Council of Ministers Decree No. 40 dated 12/05/1412 AH,
We have decreed the following:
First: The approval of the law of Chartered Accountants according to the attached form.
Second: His Excellency the Deputy of Prime Minister and the Ministers, according to their
respective competences, shall execute this decree.
Fahd bin Abdul Aziz
The Law of Chartered Accountants

1st Article:
No person, natural or legal, is allowed to practice auditing unless his/her name is registered in
the Register of Chartered Accountants at the Ministry of Commerce.
Conditions of Registering
2nd Article:
To be registered in the Register of Chartered Accountants, a person shall be:
1- Saudi Arabian.
2- With full eligibility.
3- With good conduct and behavior, was never convicted in one of the Islamic prescribed
sanctions, or a crime involving moral turpitude or dishonesty unless he/she has been
rehabilitated, and never had a decision of a disciplinary dismissal from government service
issued against him unless three years have passed since the issuance of this disciplinary
decision.
4- Holding a bachelor's degree (specialized in accounting) or any other certificate that the
competent authority considers equivalent.
5- With practical experience in accounting work after getting the qualification, referred to in
the paragraph "4" above, with one of the following entities:
A- Offices of Chartered Accountants approved by the Saudi Authority of Chartered
Accountants set forth in this law in accordance with the rules prescribed by the executive
regulation, for a period of not less than three years, reduced to two years if the applicant has a
master's degree in accounting or equivalent, and reduced to one year if he has a doctorate
degree in accounting or equivalent.
B- Governmental authorities or individual companies or institutions in accordance with the
conditions and the periods prescribed by the executive regulation, with not less than the
periods referred to in paragraph (A) above.
6- A key member of the Saudi Authority of Chartered Accountants.
7- Devoted to practice the profession full-time, however, the chartered accountant may
combine the profession and the business that does not conflict with the manners and ethics of
the profession in accordance with the rules prescribed by the executive regulation.
Registering Procedures
3rd Article:
A committee, formed by a decision of the Minister of Commerce, shall consider the
applications for registration in the Register of Chartered Accountants headed by an employee
of the Ministry of Commerce of a rank not below the fourteenth rank and the membership of:
1- A Saudi legal adviser appointed by the Minister of Commerce.
2- A Saudi chartered accountant, nominated by the board of directors of the Saudi Authority
of Chartered Accountants , with a practicing period not less than five years.
The Registering Committee of registering in the register of accountants shall decide on
the application within the period prescribed by the executive regulation and that decision shall
be justified and this decision is to be appealed against before the Board of Grievances.
4th Article:
A natural person shall pay a fee of one thousand riyals at the time of applying for registration
and at each renewal.
5th Article:
The chartered accountant, whether an individual or a company, after his registration, gets a
license to practice the profession signed by the Chairman of the Registering Committee
explaining the registration number and date. The license is valid for five years and renewed for
similar periods on a request provided ninety days at least before the expiry date.
The Legal Obligations of the Chartered Accountant
6th Article:
The licensed chartered accountant shall practice the profession actually and notify the
competent authority at the Ministry of Commerce of the address of his office, and every
change that could happen to this address, during the dates prescribed by the executive
regulation and the consequence of lack of notification on the mentioned dates is the
correctness of notification at the address registered in the ministry. The licensed chartered
accountant shall notify the competent authority at the Ministry of Commerce when he opens
any other branch.
7th Article:
The auditing reports issued by the office shall be signed by the certified accountant himself if it
is an individual or by the partner who actually participated in or supervised the auditing for
accounting companies and he shall not depute someone else to sign instead.
8th Article:
The chartered accountant shall take his personal name as the title of his office and he shall put
the license granted to him in a prominent place of the office.
9th Article:
The chartered accountant shall, whether an individual or a company, pair his name with the
license number and date in all his publications, correspondences and all what he issues
whether reports or data. He shall also provide the Saudi Authority of Chartered
Accountants with the necessary data about his activity as determined by the executive
regulation.
10th Article:
The chartered accountant shall comply with the conduct and ethics of the profession as well as
the standards of accounting and auditing and the technical standards issued by the Saudi
Authority of Chartered Accountants.
Also, the chartered accountant shall comply with duties specified under the rules and
regulations.
11th Article:
The chartered accountant is committed to attend a number of seminars determined by the
Saudi Authority of Chartered Accountants.
12th Article:
The chartered accountant shall, in all cases, retain the documents provided by the customers
and the auditing documents and copies of the final accounts for a period of not less than ten
years from the date of the issuance of his report for each audited fiscal year.
13th Article:
The chartered accountant shall not audit the accounts of the companies or organizations in
which he has an interest, directly or indirectly, so as determined by the executive regulation.
14th Article:
The chartered accountant shall not audit the accounts of joint stock companies, public banks
institutions unless he has practiced the profession for a period of not less than five years after
receiving the license.
15th Article:
The chartered accountant is asked for compensation for any damage that may occur to the
customer or others due to errors made by him during the performance of his work and the
responsibility shall be solidarity for the partners in accounting companies.
16th Article:
The chartered accountant shall (whether an individual or a company) employ a certain
percentage of Saudis of the total staff, and the executive regulation specifies this percentage,
without prejudice to the provisions of the law of labor and workers.
17th Article:
In case the chartered accountant stops practicing the profession for any reason, temporarily
or permanently, he shall notify the competent authority at the Ministry of Commerce within
thirty days following the date of his stopping and the license is considered expired in the case
of permanent stopping, and without prejudice to the sanctions provided for in this law-the
competent authority at the Ministry of Commerce has the authority to issue the decision to
void the license of every accountant who stops practicing the profession and does not provide
the notification provided for in this Article within the deadline after the verification of the
incident deserving that and hearing the words of the accountant. And if the accountant
produces the notification but he does not attend within the period of thirty days following the
date of his notification, the license shall be voided without hearing his words and he may
appeal the decision of voiding the license before the Board of Grievances. The voiding of the
license shall not result in voiding the membership in the Authority.
18th Article:
In case the chartered accountant stops practicing the profession permanently or for a period
that could harm the customers or others, all his pending dealings, rights and obligationsresulting from that- shall be settled in accordance with the rules and procedures prescribed by
the executive regulation.
The Saudi Authority of Chartered Accountants
19th Article:
An authority is created and called "The Saudi Authority of Chartered Accountants" which
works under the supervision of the Ministry of Commerce to promote the profession of
accounting and auditing and all that would help develop the profession and raising its level
and it has the right, in particular, of:
1- Reviewing, developing and approving the standards of accounting and auditing.
2- Setting the rules necessary to the fellowship certification exam and include it with the
professional, practical and scientific aspects of the auditing profession including the laws
related to the profession.
3- Holding continual education courses.
4- Preparing researches and studies on accounting and auditing and any issue related.
5- Issuing periodicals, books and publications on the accounting and auditing issues.
6- Establishing an appropriate regulation for field monitoring to make sure that the chartered
accountant applies the standards of accounting and auditing and adheres to these rules and
regulations.
7- Participating in seminars and local and international committees related to the profession
of accounting and auditing.
20th Article:
The authority consists of:
1- Key members who are:
A- All the Chartered Accountants licensed to practice the profession in the Kingdom at the
time of applying this law provided that they attend the courses held for them by the authority
and pass the tests within a period not exceeding three years from the date of the inception of
the program prepared for that unless they get the certificate of fellowship set forth in
paragraph (2) of the 19th Article of this law.
B- All those who possess the qualifications prescribed in paragraph (4) of the 2nd Article of
this law provided that they get the fellowship certificate set forth in paragraph (2) of the 19th
Article of this law.
2- Associated members who apply for the membership of those who have the qualifications
referred to in paragraph (4) of the 2nd Article of this law.
21st Article:
The Authority shall be located in the city of Riyadh and subordinate offices may be established
inside the Kingdom.
22nd Article:
The Authority shall have a general assembly consisting of all the key members who have paid
their annual subscription fees. And the General Assembly of the Authority holds its ordinary
and extraordinary meetings with the attendance of the majority of its members. If the required
quorum is not available, a summon is produced to the date of a subsequent meeting held
within thirty days following the previous date and the General Assembly meeting of the
Authority on this date is true whatever the number of attendees is.
The decisions of the General Assembly of the Authority are issued by the majority vote of
the attendees, and in case of the equality of the votes, the Chairman's vote is considered a
casting vote.
And the ordinary meetings of the General Assembly of the Authority are held on a date
that is determined at the beginning of each fiscal year of the Authority.
The General Assembly of the Authority may hold an extraordinary meeting whenever
requested by one fifth of its members or by the Board of Directors of the Authority.
The Board of Directors of the Authority prepares the agenda of the General Assembly of
the Authority.
23rd Article:
The General Assembly of the Authority is authorized to:
1- Approve the internal regulation.
2- Approve the Authority's annual budget and final accounts for each year and appoint an
observer to its accounts and determine his repayments.
3- Approve the annual work plan provided by the Board of Directors and approve its annual
report on the activity of the Authority.
4- Elect the representatives of Chartered Accountants in the Board of Directors of the
Authority.
5- Discuss everything set in its agenda of matters falling within the scope of the Authority's
work or concerns.
24th Article:
The Authority is administered by a board of directors consisting of thirteen members, and it
consists of:
1- The Minister of Commerce or anyone whom he delegates, as a Chairman.
2- The Undersecretary of the Ministry of Commerce as a member.
3- The Undersecretary of the Ministry of Finance and National Economy for financial affairs
and accounts or anyone appointed by the Minister of Finance and National Economy, with a
rank that is not below the fourteenth rank as a member.
4- The Vice-Chairman of the General Monitoring Bureau or anyone appointed by the
Chairman of the General Monitoring Bureau with a rank that is not below the fourteenth
rank as a member.
5- Two Saudi members of the teaching staff in the Department of Accounting in one or more
of the universities in the Kingdom appointed by the Minister of Commerce under the
nomination of the Minister of Higher Education.
6- A representative of the Council of Chambers of Commerce and Industry appointed by the
Minister of Commerce under the nomination of the Council of Chambers as a member.
7- Six members of Saudi Chartered Accountants who are practicing the profession, they are
elected by the General Assembly for a period of three years, renewable once. And there is an
exception that these members shall be appointed in the first Board of Directors by a decision
of the Minister of Commerce for five years.
The Secretary-General of the Authority attends the meetings of the Board of Directors
without having a vote concerning issuing decisions.
The Board of Directors shall meet at least once every ninety days upon the call of the
Chairman or his deputy and the Chairman shall call for the meeting, whenever requested, in
writing, by four members at least.
The meetings of the Board shall not be valid unless the majority of members are present and
one of whom is the Chairman or his deputy. The decisions of the Council are issued by the
majority of the votes of the attendees, and in case of the equality of the votes, the Chairman's
vote is considered a casting vote.
25th Article:
The Board of Directors shall conduct the affairs of the Authority and practice the powers
necessary to achieve its objectives and it has, in particular, the right of:
1- Proposing any amendments to be included in the law of the Chartered Accountants and
propose the regulations and decisions necessary to execution and other laws and regulations
related to the accounting and auditing profession.
2- Reviewing, developing and approving the standards of accounting and auditing.
3- Issuing financial and administrative regulations and determine the fiscal year of the
Authority.
4- Preparing the Authority's internal law.
5- Determining the assessed fees on the members and how to collect them.
6- Organizing the tests necessary to obtain the fellowship certificate provided that they include
professional, practical and scientific aspects of the practice of the audit profession as well as
the relevant regulations.
7- Drawing up programs and courses for continual education.
8- Forming technical committees such as the Committee of Accounting and Auditing
Standards, the Committee of Quality Control of Professional Performance, the Committee of
Tests and Nominations, the Committee of Continual Education and the Committee of Ethics
of the Profession and others and setting the rules and procedures of practicing their tasks.
9- Appointing a secretary general to the Authority and his deputy and they shall be Saudis and
meet the conditions prescribed for a license to practice the profession but they shall not be
practicing the profession.
The Board of Directors determines their duties, responsibilities, rights and how they are
treated financially.
26th Article:
The revenues of the Authority consist of:
1- Subscription fees determined by the Board of Directors.
2- Governmental subsidies.
3- Gifts, donations and bequests that the Board of Directors decides to accept.
4- Revenue of the investment of the funds of the Authority and the proceeds of publishing and
selling the prepared researches, studies and publications and the provided services.
27th Article:
The Authority shall have an auditor appointed by the General Assembly every year from
among the licensed chartered accountants and he has the right to see the books and
documents and to demonstrate the observations he sees and he shall audit the accounts of the
Authority and submit a report thereon to the General Assembly. The auditor, or any of his
partners, shall not be a member of the Board of Directors. The Assembly shall determine his
remunerations and it may reappoint him or select another one. An exception of this is that the
Board of Directors shall appoint the auditor for the first year and determines his
remunerations.
Sanctions
28th Article:
One of the following sanctions would be applied on those who violate the provisions of this
law:
- Blame, warning, suspension from practicing the profession for a period not exceeding six
months.
- Delisting the violator from the Register of the Chartered Accountants and publishing the
decision of the suspension and the delisting sanction at the expense of violator in one or more
of the local newspapers.
29th Article:
Taking into account what is required by regulations, a committee - formed by the Minister of
Commerce and consisting of the Undersecretary of the Ministry of Commerce as a Chairman,
a Saudi legal adviser and a member of the Board of Directors - shall investigate the violations
of the provisions of this law. In case the committee has the opinion that the violation
constitutes a crime, it shall refer the violation to the competent authority and after the verdict
is issued, the said committee shall consider the violation of the disciplinary side and it has
right to apply one of the following sanctions:
months and the violator has the right to appeal against the decision of one of the previous
sanctions to the Board of Grievances.
But if the committee has the opinion that the violation does not constitute a crime, it may after the completion of the investigation with the violator - apply one of the following
sanctions:
months. And the committee has the right to reserve (dismiss) the violation if it considers that
it does not deserve any of the set sanctions. In all cases, the decision of the committee shall be
justified and the violator has the right to appeal against the decision of the sanction to the
Board of Grievances.
If the committee considers the application of the sanction of delisting, it shall refer it to the
Board of Grievances for decision.
30th Article:
Those who have been delisted in accordance with the provisions of this law and its regulations
have the right to request to be re-registered after the expiry of five years from the date of
issuing the delisting decision, and the Minister of Commerce is the one who decides that. And
for re-registering, the conditions and procedures of registering shall be followed.
31st Article:
The suspension or delisting period provided in this law shall not be counted of the requested
period, referred to in the 14th Article of this law, for those who may audit the accounts of
joint-stock companies or audit the accounts of banks and public institutions.
32nd Article:
The Board of Grievances is authorized to apply the delisting sanction provided in this law.
Also, it is authorized to examine all the claims brought by or against the chartered accountant
for a reason that is related to his practice to the profession in accordance with the provisions of
this law.
33rd Article:
The competent authority at the Ministry of Commerce undertakes following the proceedings
of bringing claims before the Board of Grievances concerning the violation of which the
committee, provided for in the 28th Article, decides to apply delisting the accountant.
General and Transitional Provisions
34th Article:
The Minister of Commerce may compel the chartered accountant to inform the ministry with
any information requested by the Ministry to make sure that the accountant's work
performance is done according to this law.
35th Article:
Cooperation shall be organized between the licensed accountants in accordance with this law
and the non-Saudi chartered accountants as determined by the executive regulation.
36th Article:
The licenses issued, before this law enters into force, for the chartered accountants, are valid
provided that the licensed is practicing the profession with the commitment of foreign
accounting offices, whether individuals or companies, with the following:
A- Sharing one or more accountant of the Saudi chartered accountants who are licensed to
practice the profession within two years from the date of validating this law and otherwise the
license granted to the office is considered expired, and the executive regulation shall
determine the rules and participation rate of Saudis in these offices and the ways to make sure
of applying them.
B- The accountant or the foreign partner shall stay in the Kingdom for at least nine months a
year and actually practice the profession.
37th Article:
This law eliminates the law of Chartered Accountants issued by the Royal Decree No. M/43
dated 13/7/1394 AH, and its amendments, and all that is inconsistent with its provisions.
38th Article:
This law shall be published in the Official Gazette and shall come into force after ninety days
from the date of publication and the Minister of Commerce will issue the regulations and
decisions necessary for its execution.
Ministerial Decree No. 993, dated 09/09/1414 AH

The Minister of Commerce,
According to the powers assigned to him,
Having reviewed the law of the competence of the Ministry of Commerce issued by the decree
of the Council of Ministers No. 66 dated 06/04/1374 AH, and the law of the Chartered
Accountants issued by the Royal Decree No. M/12 dated 13/05/1412 AH,
And based on the requirements of the public interest,
The Minister decrees the following:
Article (1): The executive regulation of the law of the Chartered Accountants will be issued
according to the attached form.
Article (2): This decree shall be published in the Official Gazette and the competent
authorities shall execute it.
The Minister of Commerce
The Executive Regulation of Chartered Accountants issued by Royal Decree No. (M /12)
dated 13/05/1412 AH
1st Article:
The Register of Chartered Accountants shall include at least the following data:
1- The name of the licensed chartered accountant, whether an individual or a company, and
the license date, number, expiry and renewal.
2- The names of the partners in professional companies and the data referred to in the
previous article for each partner.
2nd Article:
Anyone who desires to register his name in the Register of Chartered Accountants shall attach
the following documents to his application:
1- A copy of the ID or the family card or the civil status card.
2- A pledge signed by the applicant that no Islamic prescribed sanction was executed against
him and that he has not been sentenced in a crime involving moral turpitude or dishonesty.
3- A copy of the decision of accepting his resignation from a governmental or nongovernmental organization unless he is a full-timer at one of auditing companies, so it is
sufficient for him to bring a certificate stating that he is continuing to work in this office.
4- A certified copy of the document of obtaining the bachelor's degree in the specialization of
Accounting or any equivalent document and attach a certified copy of the decision of its
equivalence.
5- A copy of a valid certificate of membership in the Saudi Authority of Chartered
Accountants.
6- A certified copy of the certificate of fellowship issued by the Saudi Authority for Chartered
Accountants.
7- A certified copy of the certificates of experience.
8- A statement signed by the applicant showing the commercial and other businesses that he
practices or shares.
9- The registered receipt of paying the due registration fees according to the 4th Article of the
law of the Chartered Accountants.
3rd Article:
Subject to the provisions of the 2nd Article of the law Chartered Accountants issued by the
Royal Decree No. (M/12) dated 13/05/1412 AH, for considering the duration periods of
practical experience spent in governmental authorities, it requires what follows:
First: Offices of Chartered Accountants:
1- The office is registered and practicing work for five years at least.
2- The office has a qualified and full-time staff.
3- The office has not been sentenced for violations of conduct and ethics of the profession.
Second: Governmental authorities and joint stock companies:
1- The period has been spent in a work of a supervisory nature on accounting and auditing
such as internal auditing and financial management.
2- This period shall not be less than four years if the applicant holds a bachelor's degree
(specialized in accounting), or equivalent. The period is reduced to two years if he holds a
master's degree in accounting or equivalent and it is reduced to one year if he holds a
doctorate degree in accounting or equivalent.
Third: Other companies and individual institutions and individuals:
1- The institution has been registered in the commercial register for five years at least.
2- The institution's accounts are audited by an auditor.
3- The period has been spent in a work of a supervisory nature on accounting and auditing
such as the internal auditing and financial management.
4- This period shall be not less than five years if the applicant holds a bachelor's degree
(specialized in accounting), or equivalent. The period is reduced to two years if he holds a
master's degree in accounting or equivalent and it is reduced to one year if he holds a
doctorate degree in accounting or equivalent.
4th Article:
The chartered accountant registered in the Registration of Chartered Accountants can
practice businesses that do not conflict with the rules of conduct and ethics and in accordance
with the following rules:
1- These businesses shall be professional businesses that complement the nature of his work,
such as providing accounting, financial and administrative studies and consultancies, and the
businesses of a nature based on consultancy.
2- These businesses shall be of non-professional economic activities, such as owning

securities, farms and real estates, and participating in companies provided that he adheres to
the following conditions:
1/2- To entrust the management to a full-time person, and he does not practice management.
2/2- To disclose the nature of his activity to his customers and inform them about the
companies in which he is participating and to provide the Ministry of Commerce with the
types of activities and the companies in which he is participating and the names of his partners
in these companies as well as providing the Saudi Authority of Chartered Accountants with a
copy of these.
5th Article:
The chartered accountant shall not audit the accounts of companies or institutions in
which he has an interest, directly or indirectly, and in particular the following:
1- The companies and institutions in which the chartered accountant is a partner or related to
the fourth degree, to enter the end, to one of the founders or one of the members of the board
of directors.
2- The companies and institutions that he participates in their founding or is a member of the
board of directors or for which he provides advisory or administrative services.
3- The joint-stock companies in which the chartered accountant owns significant shares
during his auditing period, and if he accepts to audit, he - before starting - shall alienate these
shares.
4- The companies and institutions in which the chartered accountant is a partner of one of the
employees or one of the major partners or a partner to the company itself.
5- The companies and institutions in which the chartered accountant is a supervisor of a
religious endowment (waqf) or a guardian of the legacy that has a share in those companies
and institutions.
6- The companies whose activities are similar to the commercial activities of the companies in
which he is a member of the board of directors.
6th Article:
The committee of registering in the Register of Chartered Accountants considers the
applications submitted to it and shall make its decision within thirty days, at most, from the
date of submitting the application; otherwise the application shall be regarded as rejected.
7th Article:
The chartered accountant licensed to practice the profession shall notify the Ministry of
Commerce of the spatial and postal address and the telephones of his office, and every change
occurs to this address within fifteen days from the date of the change. In case of not notifying
of the change, any notification directed to the registered address is considered true.
8th Article:
No licensed person, whether an individual or a partner in a professional company
registered in the Register of the Companies of Liberal Professions, shall sign the auditor's
report unless he has participated in or supervised the auditing works.
9th Article:
All the registered in the Registration of Chartered Accountants, whether they are
individuals or partners in professional companies, shall provide the Saudi Authority of
Chartered Accountants annually, or whenever required, with the following data:
1- The names of the companies and institutions that they are auditing.
2- The number of the financial statements that they have audited and copies of their reports
about these statements.
3- The number and types of the operations and categories that will be audited in accordance
with the auditing plan prepared for that.
4- The information or other data required by the Saudi Authority of Chartered Accountants.
10th Article:
Without prejudice to the provisions of the law of Labor and workers, the licensed chartered
accountant, whether an individual or a professional company, shall employ a percentage of
Saudis of not less than 20% of the total technical staff.
11th Article:
In case the licensed chartered accountant stops practicing the audit profession, whether an
individual or a partner in a professional company, for any reason, - temporarily or
permanently- he shall follow the following procedures:
1- Notifying the Ministry of Commerce of the reasons of stopping and its duration within
thirty days following the date of the stopping as well as providing the Saudi Authority of
Chartered Accountants with a copy of that notification.
2- Notifying the Saudi Authority of Chartered Accountants of the operations he is auditing at
the moment and that will be affected by the period of stopping and the actions to be taken to
preserve the rights of his customers and the method by which the workers shall be kept within
thirty days following the date of the stopping, and he shall coordinate with the Authority on
how to deal with the effects of the stopping.
3- The other partners in the professional company, when one of the partners stops
permanently, shall modify the company's contract in accordance with the law of professional
companies and notify the Saudi Authority of Chartered Accountants of the taken action
concerning how to assign the business which is supervised by the stopped partner to the other
partners.
12th Article:
When the chartered accountant who practices his work alone stops working, whether the
stop is permanent or for a period that results in harm to the customers or others, and without
taking the procedures set forth in the 11th Article of this regulation, the Saudi Authority of
Chartered Accountants shall perform an inventory of the pending operations in his office and
clarifies the rights and obligations of the office. And the Authority shall appoint a chartered
accountant licensed to practice the profession to settle all the existing operations on the date of
the stop and to settle the rights of workers and other obligations and rights. The Authority
shall determine the due fees to itself and to the chartered accountant for this work.
13th Article:
The investigation committee, set forth in the Article 29 of the law of Chartered
Accountants, shall set the rules governing its work and it is approved under a decision of the
Minister of Commerce.
14th Article:
Taking into account what is required by the 1st Article of the law of professional companies
issued by the Royal Decree No. (M/4) dated 18/02/1412 AH, cooperation is allowed between
the chartered accountants licensed to practice the accounting and auditing profession in the
Kingdom and the non-Saudi chartered accountants who are non-licensed to practice the
profession in Kingdom in accordance with the following:
1- The non-Saudi accountant shall be licensed to practice the profession of accounting and
auditing.
2- Both shall sign a cooperation contract between them according to the form approved by the
Saudi Authority of Chartered Accountants, and it shall be taken into account when preparing
the contract model to emphasize the responsibility of the Saudi accountant in the face of
customers.
15th Article:
The participation of non-Saudi chartered accountants licensed to work in the Kingdom
shall be prior to the law of Chartered Accountants enters into force, in accordance with the
provisions of the law of professional companies issued by the Royal Decree No. (M/4) on the
date of 18/02/1412 AH, and its executive regulation provided that to take into account that the
participation percentage of the licensed Saudis in this company's capital shall not be less than
25%.
The Minister of Commerce, according to powers assigned to him,
Having reviewed the law of Chartered Accountants issued by the Royal Decree No. M/12,
dated 13/05/1412 AH, and its executive regulation issued by the Ministerial Decree No. 993,
dated 09/09/1414 AH; and having reviewed the minutes of the meeting dated 19/08/1417 AH,
signed by the Acting Undersecretary for Commerce and the Undersecretary for Technical
Affairs and the General Manager of the General Administration of Companies; and having
reviewed the decision of the Board of Directors of the Saudi Authority of Chartered
Accountants No. 9/3, dated 09/11/1417 AH.
Decrees the following:
Article (1): Amending the item (2) of the 5th Article of the Executive Regulation of Chartered
Accountants by adding the phrase (This ban does not include introducing the services of
Zakat and tax for the same customer and at one time provided that the letter of agreement
includes what confirms that the services of Zakat and tax are a part of the scope of the agreed
task, and the fees of auditing and Zakat and tax services shall be presented in the company's
general assembly for approval, to the end of the said item).
Article (2): This decree shall be published in the Official Gazette and shall take effect from
the date of its publication.
Article (3): The competent authorities shall execute this decision, each in their own
competence.
May Allah bless,
Ministerial Decree No. 1888, dated 26/10/1420
The Minister of Commerce, according to the powers assigned to him,

Having reviewed the law of Chartered Accountants issued by the Royal Decree No. M/12,
dated 13/05/1412 AH, and its executive regulation issued by the Ministerial Decree No. 993,
dated 09/09/1414 AH corresponding to 19/02/1994 AD; and having reviewed the decision of
the Board of Directors of the Saudi Authority of Chartered Accountants No. 4/2/3 dated
13/09/1420 AH corresponding to 21/12/1999 AD,
Decree the following:
Firstly: Re-wording the 10th Article of the Executive Regulation of the law of Chartered
Accountants to provide for:
10th Article:
1- Unless the law of labor and workers and its executing decisions requires a higher percentage
than the percentages set forth below; the licensed chartered accountant shall, whether an
individual or a professional company, employ a Saudi percentage of the total of the technical
staff according to the following:
Number of employees
Percentage
20%
From (1) to (20)
25%
From (21) (30)
30%
From (31) and more
And the percentage between 20% and 30% shall be applied gradually over a maximum period
of three years, and the annual increase shall not be less than 30% of this percentage.
1- The accounting offices with more than twenty employees shall prepare an annual plan
showing the detailed procedures that will be conducted by the office for the development of
Saudi technical employees working in the office and of these procedures are:
A- Facilitating the ways for technical Saudi employees working in the accounting office to get
ready to apply to the test of the fellowship, including giving them the opportunity to attend
training courses held by the Authority for this purpose.
B- Urging the technical Saudi employees working in the accounting office to attend continual
education courses and considering that as a basis for promotion in the office.
C- Setting a time plan for the development of the Saudi employee in the office (auditor,
supervisor, auditing manager, and partner).
D- Evaluating the performance of the technical employees periodically and setting a time
program to strengthen the weaknesses that need to be developed and following up the
execution of the program and evaluating it periodically.
E- Providing an opportunity for the employees to participate in specialized professional

committees.
2- The accounting offices are guided by the model employment contract, between accounting
offices and technical Saudi employees, which is approved by the Saudi Authority of Chartered
Accountants.
Secondly: This decree shall be published in the Official Gazette and shall take effect from the
date of its publication.
Thirdly: The competent authorities shall execute this decision, each in their own competence.
May Allah bless,

The Minister of Commerce, according to the powers assigned to him,
Having reviewed the 3rd Article and 17th Article and 38th Article of the law of Chartered
Accountants issued by the Royal Decree No. M/12, dated 13/05/1412 AH,
And according to the requirements of the public interest,
Decides the following:
Article (1): Approving the rules governing the work of the committee of considering the
applications for registration in the Register of Chartered Accountants; according to the
formula attached to this decision.
Article (2): The competent authorities shall execute this decision and it shall take effect from
the date of issuance.
May Allah bless,
Firstly: The rules governing the work of the committee of considering the applications for
registration in the Register of Chartered Accountants (the Committee).
1- The Tasks of the Committee:

1/1- Considering the applications for registration and renewal of registration in the Register of
Chartered Accountants (the law) and making a decision to accept or reject the application in
the light of the provisions of the law and its executive regulation.
1/2- Issuing decisions of canceling licenses of chartered accountants set forth in the 17th
Article of the Law of Chartered Accountants, and the General Administration of Internal
Commerce shall undertake executing the Committee's decisions in this regard after being
approved by the Minister of Commerce.
2- Appointing or exempting the members of the Committee and the Secretary of the
Committee and their membership period:
1/2- The Minister of Commerce appoints the members of the Committee for a period of a
session of the Board of Directors of the Saudi Authority of Chartered Accountants (the
Board), and the member of the Committee may be re-appointed for a second session.
2/2- The Minister of Commerce may exempt any member of the committee in the following
cases:
- Upon the request of the member to be excused from the membership of the Committee.
- The member's misuse of his position in the Committee or misconduct that is considered, by
the Minister of Commerce, harmful to the objectives and the reputation of the profession in
general and the committee in particular.
- The absence of the member for three consecutive meetings or five separate meetings during
the year without a prior apology.
3/2- The Committee shall appoint a Secretary for the Committee session period.
3-The duties of the member of the Committee:
1/3- Commitment to neutrality and objectivity in all his practiced works within the committee
and he shall refrain from raising any issue before the committee concerning private interests
or what is inconsistent with the public interest.
2/3- The regular attendance to the meetings of the Committee, and the member who has
sudden circumstances that require his absence from one of the meetings of the Committee
shall notify the Chairman of the Committee, in writing, for that. A member shall not leave any
session before its end except with the permission of the Chairman of the Committee.
4- The competence of the Chairman of the Committee and the Secretary of the Committee:
1/4- The Chairman of the Committee undertakes the supervision on accomplishing the tasks
of the Committee and in particular the following:
1/1/4- He calls the Committee to convene and determines the time, date and place of each
meeting of the committee meetings and the agenda in coordination with the members of the
Committee.
2/1/4- He presides over the meetings of the Committee.
3/1/4- He prepares periodic reports on the activities of the Committee and submitting them to
His Excellency the Minister of Commerce.
4/1/4- He represents the Committee before the Ministry and any other authority as required.
2/4- The Secretary of the Committee attends the meetings of the Committee without the right
to vote and he prepares the minutes of the meetings and informs the dates of the meetings and
the agendas to the members and he does all the administrative work of the Committee.
5- The Meetings of the Committee:
1/5- The Committee shall approve the schedule of its meetings at the beginning of each year
and during each meeting the members shall agree on the subsequent one decisively.
2/5- The Committee shall hold a regular meeting at least every month or whenever required
and the summoning shall be sent to attend the meeting before its date with one week at least,
and the agenda and its documents shall be attached to the summoning. It is necessary to the
complete quorum that all the members shall be present.
3/5- The decisions and recommendations of the Committee are issued by the majority vote of
the present members.
4/5- Any member may have a reservation on any decision taken by the Committee provided
that he shows the essential points on which he built the reservation.
5/5- Vote may be done through passing on some matters that need a speed urgent decision
about them in case the Chairman of the Committee feels the need to do so. The letter that asks
for voting shall include a sufficient explanation for the proposed topic for the vote and an
explanation for any discussions related to the topic at the previous meetings, and the decisions
or recommendations that have been taken on them. And the results of the voting shall be
documented and the decision shall take effect if approved by all members of the Committee
and the members are provided with a copy of it.
6/5- The Committee may summon whoever it sees to attend the Committee meetings and
participate in the discussions without having the right to vote on the recommendations and
decisions of the Committee.
6- Documenting the minutes of the Committee:
The Secretary of the Committee writes down, during the meeting, the most important
discussions and, after completing the discussion of any topic, he summarizes the
recommendations or decisions that have been reached as well as the draft minutes and he
presents it to the members of the Committee to sign, and the signed copy shall be kept in a
special file in the Ministry and all the documents and correspondences related to the minutes
are attached to it.
7- Executive procedures for the work of the Committee:
The Committee considers the applications submitted to it; it shall decide within thirty
days, at most, from the date of submitting the application, and the registration procedures
shall be completed in accordance with what is shown in the executive procedures for
registering attached to these rules.
Secondly: The executive procedures for registration or renewal:
1- Anyone who desires to register his name in the Register of Chartered Accountants (the
Register) or renew his registration shall submit an application to His Excellency the Chairman
of the Committee according to the form (1/2) and attach the documents relevant according to
the form (1/1), and the Chairman of the Committee transmits the application and the
attached documents to the Secretary of the Committee for consideration.
2- The Secretary of the Committee receives the application for registration and registers it in a
special register indicating the number and date of the application and the attachments.
3- The Secretary of the Committee studies the application and its attachments and prepares a
memorandum according to the form (2) and illustrates the completeness of the documents
and the completeness of the conditions of membership and any other observations and
attaches to it the registration application and its attachments. The memorandum is presented
together with the application for registration and its attachments to the Committee within a
period not exceeding three weeks from the date of receiving the application for registration.
4- The Committee shall examine the registration application and its attachments and render a
decision in accordance with the form (3) to accept or reject or request the completion of some
data, and in all cases the decision shall contain the bases on which the decision has been
reached, and the minutes of the meeting of the Committee shall be prepared in accordance
with the procedures of documenting the minutes of the Committee.
5- If the Committee considers the completion of data or the rejection of the application, the
Chairman of the Committee notifies the applicant of this decision. And the application and its
attachments are referred to the Secretary of the Committee to be saved. And if the Committee
considers accepting the application, the Chairman of the Committee refers the application
and its attached documents to the Secretary of the Committee for registration in the Register
of Chartered Accountants.
6- The competent officer in the Ministry registers the applicant accountant in the Register of
Chartered Accountants (Individuals) according to the form (4) provided that the register
includes in its bottom the name of the licensed chartered accountant and date of the license,
number and expiry date and renovations. The documents related to the application are kept in
a special file with the name of the licensed accountant.
7- After the registration of the chartered accountant in the Register of Chartered Accountants,
he is granted a license to practice the profession for five years, according to the form (5).
8- Before the expiry date of the license with at least ninety days, the chartered accountant shall
apply for a renewal application, and the Committee shall consider the application and make
the appropriate decision about it and when renewing the application, the procedures referred
to at the registration shall be followed.
Thirdly: The used forms
Form (1/1/A)
The data and information that shall be submitted for registration in the Register of Chartered
Accountants
All those who desire to register their names in the Register of Chartered Accountants shall do
the following:
1- Submitting an application to His Excellency the Chairman of the Committee of
Registration in the Register of Chartered Accountants, according to the form (1/2/A) and he
shall attach the following documents to the application:
- A copy of the ID (Hafitha Number) or the civil registry.
- Four photographs of the size 3 x 4 cm. 2 photographs of the size 2 x 2 cm.
- A pledge signed by the applicant that he has never been convicted in one of the Islamic
prescribed sanctions, or a crime involving moral turpitude or dishonesty, according to the
form
(1/6).
- A certified copy of the document of obtaining a degree in accounting or an equivalent one
and attach a certified copy of the decision of equalizing it.
- A certified copy of the certificates of experience.
- A copy of a valid certificate of membership in the Saudi Authority of Chartered Accountants.
- The name of the city, which will be the headquarters of the office, according to the form
(1/5).
- A statement of the works he practices side by side with his practice of the profession,
including the names of the companies in which he is participating and the names of his
partners in these companies in accordance with the form (1/3).
- A declaration that he is devoted to practice the profession full-time and committed to the
rules and regulations related to the profession and the professional standards according to the
form (1/4).
- A registered receipt of paying application fee.
2- Bringing in the original documents when applying for registration.
3- The submitted documents shall be in Arabic or translated by a certified office into Arabic if
they are issued in a language other than Arabic.
4- Keeping the above mentioned documents in a file and indexing them according to the
above-mentioned sequence. And the file shall be submitted to the Department of the liberal
professions at the Ministry of Commerce.
Form (1/1/b)
The data and information that shall be submitted for the renewal of registration in the
Register of Chartered Accountants
All those who desire to renew their names in the Register of Chartered Accountants shall do
the following:
1. Submitting an application to His Excellency the Chairman of the Committee of
Registration in the Register of Chartered Accountants, according to the form (1/2/B) and he
shall attach the following documents to the application:
- A copy of the ID (Hafitha Number) or the civil registry.
- Four photographs of the size 3 x 4 cm. 2 photographs of the size 2 x 2 cm.
- A certified copy of the document of obtaining any scientific or professional degree after
practicing the profession.
- A certified and valid copy of a certificate of membership in the Saudi Authority of
Accountants.
- The name of the city, which will be the headquarters of the office, according to the form
(1/5).
- A statement of the works he practices side by side with his practice of the profession,
including the names of the companies in which he is participating and the names of his
partners in these companies in accordance with the form (1/3).
- A declaration that he is devoted to practice the profession full-time and committed to the
rules and regulations related to the profession and the professional standards according to the
form (1/4).
- A registered receipt of paying application fee.
2- Bringing in the original documents when applying for registration.
3- The submitted documents shall be in Arabic or translated by a certified office into Arabic if
they are issued in a language other than Arabic.
4- Keeping the above mentioned documents in a file and indexing them according to the
above-mentioned sequence. And the file shall be submitted to the Department of the liberal
professions at the Ministry of Commerce.

Having reviewed the 29th Article of the law of Chartered Accountants issued by the Royal
Decree No. M/12 dated 13/05/1412 AH,
And the 13th Article of the executive regulation of the Chartered Accountants approved by the
decision of the Minister of Commerce No. 993, dated 09/09/1414 AH,
Article (1): Approving the rules governing the work of the committee investigating the
violations of the provisions of the Chartered Accountants law issued by Royal Decree No.
M/12 dated 13/05/1412 AH, according to the formula attached to this decision.
Article (2): The competent authorities shall execute this decision and shall take effect from
the date of issuance.
The rules governing the work of the committee investigating the violations of the provisions
of the Chartered Accountants law issued by the Royal Decree No. M/12 dated 13/05/1412 AH
1- The Tasks of the Committee:
Investigating the violations of the Chartered Accountants licensed to practice the profession
in the Kingdom in accordance with the provisions of the Chartered Accountants law.
2- Appointing or exempting the members of the Committee and their membership period:
1/2- The Minister of Commerce appoints the members of the Committee for a period of a
session of the Board of Directors of the Saudi Authority of Chartered Accountants (the
Board), and the member of the Committee may be re-appointed for a second session.
2/2- The Minister of Commerce may exempt any member of the committee, except the
Chairman of the Committee, in the following cases:
- Upon the request of the member to be exempted from the membership of the Committee.
- The member's misuse of his position in the Committee or misconduct that is considered, by
the Minister of Commerce, harmful to the objectives and the reputation of the profession in
general and the committee in particular.
- The absence of the member for three consecutive meetings or five separate meetings during
the year without a prior apology.
3-The duties of the member of the Committee:
1/3- Commitment to neutrality and objectivity in all his practiced works within the
Committee and he shall refrain from raising any issue before the committee concerning a
private interest or what is inconsistent with the public interest.
2/3- The regular attendance to the meetings of the Committee, and the member who has
sudden circumstances that require his absence from one of the meetings of the Committee
shall notify the Chairman of the Committee in writing of that.

4- The competence of the Chairman of the Committee and Secretary of the Committee:
1/4- The Chairman of the Committee undertakes the supervision on accomplishing the tasks
of the Committee and in particular the following:
1/1/4- He calls the Committee to convene and determines the time, date and place of each
meeting of the committee meetings and the agenda in coordination with the members of the
Committee.
2/1/4- He presides over the meetings of the Committee.
3/1/4- He prepares periodic reports on the activities of the Committee and submitting them to
His Excellency the Minister of Commerce.
2/4- The Committee shall appoint a secretary to attend the meetings without having the right
to vote and he prepares the minutes of the meetings and informs the dates of the meetings and
the agendas to the members and he does all the administrative work of the Committee.
5- The meetings of the Committee:
1/5- The Committee shall approve the schedule of its meetings at the beginning of each year
and during each meeting the members shall agree on the subsequent one decisively.
2/5- The Committee shall hold a regular meeting at least every two months or whenever
required and the summoning shall be sent to attend the meeting before its date with one week
at least, and the agenda and its documents shall be attached to the summoning. It is necessary
for the complete quorum that all the members shall be present.
3/5- The decisions and recommendations of the Committee are issued by the majority vote of
the present members.
4/5- Any member may have a reservation on any decision taken by the Committee provided
that he shows the essential points on which he built the reservation.
5/5- Vote may be done through passing on some matters that need a speed urgent decision
about them in case the Chairman of the Committee feels the need to do so. The letter that asks
for voting shall include a sufficient explanation for the proposed topic for the vote and an
explanation for any discussions related to the topic at the previous meetings and the decisions
or recommendations that have been taken on them and the decision shall be made, in this
case, by consensus.
6/5- The Committee may summon whoever it sees to attend the Committee meetings and
participate in the discussion without having the right to vote on the recommendations and
decisions of the Committee.
7/5- The Secretary General of the Authority undertakes executing the decisions and
recommendations of the Committee in coordination with the competent authorities.
6- Documenting the minutes of the Committee:
1/6- The Secretary of the Committee writes down, during the meeting, the most important
discussions and, after completing the discussion of any topic, he summarizes the
recommendations or decisions that have been reached.
2/6- The Secretary of the Committee writes down a minutes for each meeting in which he
writes the date and place of the meeting and the names of those who are present and absent,
and a summary of the discussions and the texts of recommendations and decisions reached by
the Committee signed by all members.
3/6- The signed copy of the minutes shall be kept in a special file at the Authority and all the
documents and correspondences related to the minutes shall be attached.
7- Executive procedures for the work of the Committee:
1/7- Any communiqu for a violation of the provisions of the Chartered Accountants law shall
be informed to the Saudi Authority of Chartered Accountants.
2/7- The violation shall be written down in a special register at the Authority and it shall
include at least the following data:
A- The name of the chartered accountant to whom the violation is alleged and the license
number.
B- The authority which reported the violation.
C- The number and date of the letter under which the violation was reported.
D- A summary of the violation.
E- The number and date of the letter directed by the Secretary of the Committee to the
chartered accountant to express his opinion on the violation alleged to him.
F- The number and date of the latter received from the chartered accountant in response to the
letter referred to in (E) above.
G- The date of presenting the violation to the Committee and a summary of the Committee's
decision regarding the violation.
3/7- The Secretary of the Committee sends a letter to the chartered accountant to whom the
violation is alleged showing a summary of the violation and asking him to provide the
Committee with his comments about this violation and attach any documents related to the
violation within a period not exceeding four weeks.
4/7- The Committee shall consider the available documents and correspondences and may
request any other information that it sees important, or call any of the relevant parties of the
violation and listen to what they have to say about the violation and make a decision
concerning the violation within three months unless there are reasons which prevent that.
And whenever the need arises, the Committee has the right to resort to consultants to study
the violation and documents and correspondences related and prepare a memorandum on
them and present it to the Committee.
5/7- If the Committee finds that the violation constitutes a crime; whereupon it refers the
violation to the competent authority. And after the judgment, the Committee considers the
violation from the disciplinary side, and after questioning the accountant and hearing his
words, the Committee may apply one of the following sanctions:
- Blame.
- Warning.
- Suspension from the practice of the profession for a period not exceeding six months.
If the Authority considers that the violation does not constitute a crime, it may - after the
completion of the investigation with the violator apply one of the sanctions referred to
above and it may save the papers of the violation if it considers that it does not deserve any of
the set sanctions. In all cases, the decision of the Committee shall be justified; and the violator
in all cases has the right to appeal against the decision of the sanction before the Board of
Grievances.
6/7- If the Committee considers applying the sanction of delisting; it shall refer the violation
papers to the Ministry Undersecretary for Technical Affairs to initiate the proceedings before
the Board of Grievances.
7/7- The sanction of suspension and delisting shall be published at the expense of the violator
in one or more of the local newspapers.

Having reviewed the law of the competence of the Ministry of Commerce issued by the decree
of the Council of Ministers No. (66) dated 06/04/1374 AH.
And having reviewed the joint minutes of the representatives of the Ministry of Commerce
and the Department of Zakat and Income and the Saudi Authority of Chartered Accountants,
dated 15/02/1419 AH, corresponding to 09/06/1998 AD.
And having reviewed the decree of the Board of Directors of the Saudi Authority of Chartered
Accountants No. 10/2, dated 05/07/1419 AH corresponding to 25/10/1998 AD.
And according to the requirements of the public interest.
Article (1): The license to provide the services of Zakat and income tax shall be issued
according to the rules attached to this decision.
Article (2): This decree shall be published in the Official Gazette and shall take effect from the
May Allah bless,
The Rules governing the licenses to provide the services of Zakat and Income Tax
1st Article:
No person, whether natural or legal, is allowed to provide the services of Zakat and income
tax unless he is licensed - to provide this service - by the Ministry of Commerce, however, the
Chartered Accountants licensed to practice the profession of accounting and auditing in the
Kingdom may provide the services of Zakat and income tax without getting a special permit.
The scope of the services of Zakat and income tax includes the following:
1- Preparing or helping in the preparation of the statement of Zakat and taxation.
2- Providing advice to taxpayers on matters related to the services of Zakat and income tax.
3- Representing the taxpayer before the Department of Zakat and Income Tax and Zakat and
Tax committees as an agent of the taxpayer.
4- Providing consulting services to the Department of Zakat and Income Tax and Zakat and
Tax committees related to the services Zakat and income tax including a field and office
examination on behalf of the Department if asked to do so by the Department of Zakat and
Income Tax or Zakat and Tax committees.
And it shall be taken into account that the scope of the services of Zakat and income tax does
not include any works related to auditing the financial statements of the institution.
2nd Article:
Whoever is licensed to provide the services of Zakat and income tax shall:
1- Be of Saudi nationality.
2- Have full eligibility.
3- Be with good conduct and behavior.
4- Hold a bachelor's degree, or Master or doctorate in the specialization of accounting or
management accounting or any other certificate that the competent authority considers an
equivalent certificate to any of them.
5- Pass the test of Zakat and tax subject held by the Saudi Authority of Chartered
Accountants.
6- Have practical experience after obtaining the qualification referred to in paragraph (4)
above, provided that this experience period has been spent in a work related to the services of
Zakat and income tax for not less than (3) years after obtaining the bachelor's degree. This
period is reduced to two years after receiving the Master degree and it is reduced to one year in
the case of receiving the doctorate degree.
7- Be devoted to work full-time to practice the profession, however, he may combine
providing the services of Zakat and income tax and the businesses that do not conflict with
the rules of conduct and ethics approved by the Saudi Authority of Chartered Accountants.
8- Pass three years at least after leaving work if the applicant was one of the employees of the
Department of Zakat and Income Tax.
3rd Article:
The licensed, whether an individual or a company after being registered in the Register, is
allotted a license to practice the profession explaining the registration number and date of the
license and it is valid for five years and renewed for a similar period on the request before the
expiry date with at least ninety days.
4th Article:
The licensed shall actually practice the profession and notify the competent authority at the
Ministry of Commerce of the address of his office, when he submits the license application,
and all changes that could happen to this address, within one month of that date. And the
failure to notify the changes within the set time results in the correctness of any notification at
his address registered at the Ministry.
5th Article:
The licensed shall sign the reports himself if he is an individual or a partner who actually
participated in or supervised the executed work for companies, and no one may be deputized
to sign. And these reports shall be limited to the business specified in the 1st Article of these
rules.
6th Article:
The licensed shall take his personal name as the title of his office and the granted license
shall be put in a prominent place of the office.
7th Article:
The licensed, whether an individual or a company, shall pair his name to the license
number and its date in all his publications, correspondences and all reports and data that he
issues. He shall also provide the Ministry of Commerce with periodic reports on the nature of
his work according to what is approved by the Minister of Commerce.
8th Article:
The licensed shall comply with the conduct and ethics of the profession and accounting
standards and the other professional standards issued by the Saudi Authority of Chartered
Accountants. The licensed shall also comply with the obligations set out under the approved
laws, regulations and rules. The fees earned by the licensed due to his practice to the services
of Zakat and income tax shall not be linked to the results of the service provided by him, like
linking his fees a certain percentage of the amount that has been reduced from the estimated
amount of the tax.
9th Article:
The licensed shall attend a number of seminars and continual education courses
determined by the Saudi Authority of Chartered Accountants.
10th Article:
The licensed shall, in all cases, retain the papers introduced from customers, the office
work papers and copies of the reports for a period of not less than ten years from the date of
issuing his reports.
11th Article:
The licensed is asked for compensation for the damage that happens to the customer or
others due to errors done by him concerning the performance of his work and the
responsibility shall be solidarity for the partners in the professional companies.
12th Article:
The licensed shall (whether an individual or a company) employ a certain percentage of
Saudis of the total staff, according to the ratio determined by the Ministry of Commerce, and
without prejudice to the provisions of the law of labor and workers.
13th Article:
All those who desire to obtain a license shall attach the following documents to his
application:
1- A copy of the ID or the family card or the civil status card.
2- A pledge signed by the applicant that no Islamic prescribed sanction was ever executed
against him and that he has never been sentenced in a crime involving moral turpitude or
dishonesty, or a disciplinary decision was issued against him.
3- A copy of the decision of accepting his resignation from the authority he worked at.
4- A certified copy of the document of obtaining his degree.

5- A certified copy of the certificates of experience.
6- A statement signed by the applicant showing the businesses and other work he is practicing
or he is participating in.
And it shall be taken into account when renewing the license that he shall submit the original
valid license and the certificate of Zakat and Income.
14th Article:
In case the licensed stops practicing the profession for any reason, temporarily or
permanently, he shall notify the competent authority at the Ministry of Commerce of that
within thirty days following the date of his stop, and the license is terminated in the case of the
permanent stop.
15th Article:
In case the licensed stops practicing his profession permanently or for period that results in
harm to customers or others, all the pending dealings and rights and obligations shall be
settled in accordance with the rules and procedures approved by the Minister of Commerce.
16th Article:
In case the licensed violates a provision of the provisions of these rules, he shall be
punished by one of the following sanctions:
1- Warning.
2- Suspension from practicing the profession for a period not exceeding one year.
3- Terminating the license.
And the authority, determined by the Minister of Commerce, issues the decision of the
sanction after summoning the licensed and hearing his words concerning what is alleged to
him, and the decision shall be justified. And the licensed may appeal this decision to the
Minister of Commerce within one month from the date of notification and the Minister's
decision in this regard is final. In all cases, the license is revoked if the licensed missed any of
the conditions of practicing the profession.
Ministerial Decree No. (1/398), dated 25/02/1421 AH

The Minister of Finance and National Economy,
According to his powers,
And according to the 19th Article of the Income Tax law issued by the Royal Decree No. 3321,
dated 21/01/1370 AH, and its later amendments,
And based on the decree of the Council of Ministers No. (3), dated 05/01/1421 AH, issued
with the agreement that the state shall afford 15% of the taxes on the profits of the companies
that exceed one hundred thousand riyals a year and carrying over the losses for years to come,
without specifying a certain period.
Having reviewed what was currently presented to us by the General Manager of the
Department of Zakat and Income in charge with his memorandum dated 14/01/1421 AH
which is based on the findings of the committee formed to develop regulations for the
execution of the decision referred to,
1. For the purpose that the state affords 15% of the taxes on the profits of companies that
exceed one hundred thousand riyals, this ratio is calculated out of the prices of tax brackets
provided for in the 11th Article of the tax law issued by the Royal Decree No. 3321, dated
21/01/1370 AH, and it includes all the taxable fund companies with the exception of the
companies working in the production of oil, gas and hydrocarbons.
2. The state's affording to this rate of tax is confined only to the profits that exceed one
hundred thousand riyals a year, and thus the applying when collecting the tax money from
companies is as follows:
The first tax bracket: 1 - 100,000 SR at 25%
The second tax bracket: 100.001 - 500,000 SR at 20% instead of 35%
The third tax bracket: 500.001 - million riyals at 25% instead of 40%
Fourth tax bracket: over one million riyals at 30% instead of 45%
3. The net losses that can be carried forward shall be specified by the legally modified
operating losses, regardless the loss in the books.

The operating loss means the expenses which may be decisive under the 14th Article of the tax
law and in excess of the taxable income in the tax year.
4. All taxes payers who hold regular accounts and are subject to the income tax under the
aforementioned Royal Decree will benefit from the principle of carrying losses over.
5. Those who are tax-exempt shall not benefit from the principle of carrying losses over except
for losses accruing after the expiration of the tax exemption period due to them.
6. This decision applies on the fiscal years which end with dates subsequent to the decree of
the Council of Ministers referred to, and it does not include the accounts of previous fiscal
years, whether presented to the authority or not, and whether they are bound upon or not, or
were being considered in the tax committees of objection or the appeal ones.
7. The General Manager of the Department of Zakat and Income shall approve the execution
of this decree and report it to whom it may concern to be executed.
May Allah bless,
The Minister of Finance and National Economy
Ministerial Decree No. (929), dated 29/08/1416 AH
Having reviewed the companies' law issued by the Royal Decree No. (M/6), dated 22/03/1385
AH on amending some provisions of the Executive Regulation of the companies' law,
And having reviewed the law of professional companies issued by the Royal Decree No.
(M/4), dated 02/18/1412 AH,
And having reviewed the Executive Regulation of the law of professional companies issued by
the Ministerial Decree No. (4), dated 08/01/1413 AH,

1st Article:
The following amendments shall be made to the Executive Regulation of the law of
professional companies issued by the Ministerial Decree No. (41), dated 08/01/1413 AH:
(1) The item (4) of the 2nd Article shall be amended to the following text:
"The foreign professional company shall have a permanent representative - at least one in
the Kingdom of not less than nine months of residence duration a year. The representative
shall be a holder of a university degree, at least in the field of the specialization of the
company, and be a member of one of the professional associations specialized in the same
profession that is authorized and his practical experience shall not be less than ten consecutive
years. And the foreign companies that participated in the establishment of the existing
professional companies shall reconcile their positions according to these conditions within a
maximum of one year from the date this decision enters into force in order to continue
practicing the profession in the Kingdom."
(2) The Article (5) shall be amended to the following text:
"The company's contract is confirmed in writing before a notary, and the company's
managers shall, within thirty days of its founding, publish a summary of this contract in a
daily newspaper distributed in the headquarters of the company, and they shall ask - on the
mentioned date for the company's registration in the register of professional companies.
Also they shall publish, in the same previous way; each amendment that may happen to the
summary data referred to as well as the expiration of the company, and they shall ask on the
mentioned date for the checking off with that in the register of professional companies."
(3) The Article (11) shall be amended to the following text:
"All contracts and receipts, banners, advertisements and other papers issued by the company
shall bear the name of the company and its headquarters, license number, and if the company
expired, it shall be mentioned in the papers issued by it that it is under liquidation.
2nd Article: This decree shall be published in the Official Gazette, and shall take effect from
the date of its publication.

The Minister of Commerce and Industry,
Having reviewed the law of the competence of the Ministry of Commerce and Industry issued
by the Council of Ministers decree No. 66, dated 06/04/1374 AH, which empowers the
Ministry the authority of granting licenses to practice the liberal professions and developing
rules and regulations necessary to do so,
And having reviewed the Ministerial decrees issued with the numbers 420, 421, 422, on
11/06/1388 AH, on organizing the practice of the profession of engineering, engineering
consultancy, lawyer profession, legal advisor, accounting and auditing profession and the
recommendations attached to those decrees,
And having reviewed the memorandum of the Legal Department No. 714 /M, on 19/08/91
AH, and what his Excellency the Undersecretary has shown in his letter No. 182 /M, dated
06/03/1392 AH,
And according to the powers assigned to him,
1st Article: The following conditions shall be added to the terms and conditions set forth in the
recommendations attached to the Ministerial decrees referred to in the preamble to this
decree.
(1) The scope of the license that is issued by the Ministry to a specific person to practice a
specific liberal profession is limited to the particular city or cities or area or areas described in
the license only without other cities or other areas in the Kingdom. If the license does not
include specifying to a particular city or area where the licensed can practice his profession, it
means that the license issued to him includes the entire Kingdom.
(2) As of the date of this decision it is provided in the granted licenses that the issued license is
limited to practice the profession in the city or cities or area or areas described in it only and
the licensed shall not practice this profession outside this range unless he has a written permit
authorized by the Ministry.
(3) Opening a branch or an office to practice the liberal profession outside the city or cities or
area or areas set in the license to practice the profession in its scope as specified in the previous
item is considered a practice of the profession without a license.
(4) If one of the licensed desires to practice one of the liberal professions by opening a branch
for his office in a city or cities, or a specific area or areas outside the spatial range specified in
the license issued to him, he shall - before practicing his work in this branch or office - obtain
the necessary license from the Ministry to open it. In this case, the conditions of the first
license to practice this liberal profession are applied to the license of opening a branch or an
office which are set out in the Ministerial decree issued regarding each of these professions
and the instructions applied by the Ministry in this regard.
(5) The foreigner brought to work for a company or a civil institution and the staff of the
governmental departments shall not open a branch for work after the official working hours
outside the city where they work.
2nd Article: This decree shall be notified to those who are supposed to execute it and it shall
take effect from the date of issuance.
The Minister of Commerce and Industry

Having reviewed the companies' law issued by the Royal Decree No. 6, dated 22/03/1385 AH,
and its amendments,
And the law model of the joint-stock company issued by the Ministerial Decree No. (192),
dated 03/09/1404 AH, and its amendments,
And the minutes of the Supreme Committee of Chartered Accounting No. 29, on 07/11/1408
AH, containing the recommendation to delete the reference to the topic of Zakat of Article
(41) of the law model of the joint-stock company and leave it to the general rules and statutory
provisions that apply to the companies that the Department of Zakat and Income Tax is
specialized to apply,
Article (1): The text of Article (41) of the joint-stock company shall be replaced with the
following text:
The annual net profits of the company - after deducting the general expenses and other costs
shall be distributed as follows:
1) 10% of the net profits are retained to form a statutory reserve and the General Assembly
may stop this regular retainer when the set reserve reaches half of the capital.
2) Also % of the net profits is retained to form an agreement reserve allocated for % and
this retainer shall be stopped when the set reserve reaches . of the capital.
3) After that, it is distributed out of the remainder a down payment to shareholders which is
equal to.....% of the capital.
4) After distributing the aforementioned,, % is allocated for rewarding the Board of
Directors and then the remainder shall be distributed to shareholders as an additional stake of
the profits.
Article (2): This decree shall be published in the Official Gazette (Omm Al Qura) and shall
take effect from the day following the date of publication.

Having reviewed the 16th and 35th articles of the Accountants' law issued by the Royal Decree
No. M/43, dated 13/7/1394 AH. And having reviewed the executive regulation of the
Accountants' law issued by the Ministerial Decree No. 595, dated 13/11/1395AH,
And having reviewed the Article 233 of the Companies law issued by the Royal Decree No.
M/6, dated 22/03/1385 AH, and its amendments,
And having reviewed the study prepared for this Ministry on the development of the financial
accounting profession and auditing, which has been distributed to the relevant governmental
competent authorities and the licensed accounting offices,
And having reviewed the observations reported by these authorities on the study referred to,
And having reviewed the minutes of the meeting of the Higher Committee of Chartered
Accounting during its session on 24/01/1406 AH, which recommended the adoption of the
mentioned study as guiding rules for accountants and auditors,
And according to the requirements of public interest,
Firstly: The attached study is approved. It is on the objectives and concepts of the financial
accounting and the auditing standards and the standard of public presentation and disclosure
as an official reference to guide all the chartered accountants licensed to work in the Kingdom
of Saudi Arabia.
Secondly: The Undersecretary shall execute this decree and refer the received inquiries about
this reference to the Supreme Committee of Chartered Accounting to express an opinion on

them.
Thirdly: This decree shall be published in the Official Gazette, and shall take effect from the
Ministerial Decree No. (852) dated 10/07/1410 AH
Having reviewed the law of Chartered Accountants issued by the Royal Decree No. (42),
dated 13/07/1394 AH, and its executive regulation,
And the law of companies issued by the Royal Decree No. (6), dated 22/03/1385 AH,
And the Ministerial Decree No. (692), dated 28/02/1406 AH,
And the minutes of the Supreme Committee of Chartered Accounting during its meeting
dated 26/02/1410 AH,
And the memorandum of the Undersecretary for Technical Affairs No. 1966/11, dated
03/08/1410 AH,
Article (1):
Without prejudice to the accounting concepts, rules and instructions, of the non-profit
institutions, issued by the competent authorities, it is necessary - when preparing and
reviewing the financial statements of the institutions of different regular forms or the activity
that they are undertaking to commit to the provisions of paragraphs (582 to 618) and (679
to 713) and (744 to 751), and (772 to 775) which are about the requirements of presentation in
the general disclosure which are contained in the study related to the objectives and concepts
of accounting and presentation and disclosure standard as well as complying with the
requirements of auditing standards which are all attached to the Ministerial Decree No. (692),
dated 28/02/1406 AH, the referred to, as of the fiscal year that will end three months after the
date of this decree.
Article (2):
Work shall continue with the forms attached to the standards in a guiding way and the phrase
"the list of sources and the use of the funds", contained in paragraphs (581 and 582) of the
presentation and disclosure requirement, shall be canceled.
Article (3):
The General Administration of Internal Commerce, at the Ministry of Commerce undertakes
the follow-up of the commitment of the chartered accountants to the provisions of the 1st
Article of this decree and it receives their suggestions and comments in order to study them
and prepare a report including the result of the mandatory application of these standards and
the suggestions on modifying or developing them during a period not exceeding two months
from the expiration of two years on the date of this decree.
4th Article:
This decree shall be published in the Official Gazette and shall take effect from the date of its
publication.
The Council of Ministers' Decree No. (126), dated 14/05/1424 AH

The Council of Ministers,
Having reviewed the file received from the Divan of the Cabinet Presidency No. 7/b/5163,
dated 04/02/1424 AH, containing a letter of His Excellency the Minister of Commerce and
Industry No. 853/M, dated 30/10/1421 AH, containing His Excellency's proposal to modify
the 28th Article of the law of the Chartered Accountants issued by the Royal Decree No.
(M/12), dated 13/05/1412 AH,
And having reviewed the law of the Chartered Accountants referred to above,
And having reviewed the minutes prepared in the Authority of Experts No. (68), dated
11/02/1422 AH,
And having considered the Shura Council Decree No. (60/60), dated 29/12/1423 AH,
And having considered the recommendation of the General Committee of the Council of
Ministers No. (161), dated 02/04/1424 AH.
Approving the amendment to the 28th Article of the law of Chartered Accountants issued by
the Royal Decree No. (M/12), dated 13/05/1412 AH, to become the following text:
28th Article:
First: Anyone who violates the provisions of this law shall be punished with one of the
following disciplinary sanctions:
- Blame, warning, suspension from the practice of the profession for a period not exceeding six
months.
- Delisting the violator from the register of the Chartered Accountants, and the decision of
suspension and the delisting shall be published at the expense of the violator in one or more of
the local newspapers.
Second: Without prejudice to the disciplinary sanctions set forth in this law, and any severer
sanction provided for in other laws, each person registered in the Register of the Chartered
Accountants who violates the provisions of this law and this violation constitutes a crime shall
be punished by imprisonment for a period not exceeding one year and a fine of not more than
(two hundred thousand) riyals and not less than (fifty thousand) riyals, or one of them, the
issued sanction decision shall be published at the expense of the violator in one or more of the
local newspapers.
Third: Without prejudice to the disciplinary sanctions set forth in this law, and any severer
sanction provided for in other laws, everyone who has committed any of the following acts
shall be punished with the sanctions specified in the item (second) of this Article:
1- Practicing the profession of accounting and auditing without obtaining a license.
2- Practicing the profession of accounting and auditing after the cancellation of the license or
delisting or termination and he did not follow the necessary procedures for renewal.
3- Opening or creating or managing an office to practice the accounting and auditing
profession without a license.
4- Providing untrue data or using illegal methods that resulted in granting him a license to
practice the profession of accounting and auditing or led to the renewal of the license.
5- Using a means of propaganda that would get the public to believe that he has the right to
practice the profession of accounting and auditing untruly.
6- Impersonating a title of the titles that are usually called on the practitioners of the
profession of accounting and auditing.
The Committee shall investigate the violations - of the provisions of the Law of the Chartered
Accountants stipulated in the 29th Article of this law - with the violator. If the Committee
found that person has committed any of the above, it issues a decision to close the office, and
the following shall be done:
1. The Ministry of Commerce and Industry shall publish the closure decision in one or more
of the local newspapers at the expense of the violator.
2. Coordination shall be done with the competent authorities to close the office.
3. Referring the violation to the Board of the Grievances for consideration, and the judgment
shall be published in one or more of the local newspapers at the expense of the convicted
person.
A draft royal decree has been prepared for that and its wording is attached to this.
Prime Minister
Royal Decree No. M/23, dated 06/02/1424 AH

With the help of the Allah the Almighty,
We, Fahd bin Abdul Aziz Al Saud,
The King of the Kingdom of Saudi Arabia,
Based on the 70th Article of the Statute of the rule, issued by the Royal Order No. (A/90) and
on the date 27/8/1412 AH,
And based on the 20th Article of the law of Council of Ministers, issued by the Royal Order
No. (A/13), dated 03/03/1414 AH,
And based on the 17th and 18th Articles of the law of Ash-Shura Council, issued by the Royal
Order No. (A/91) and the date 27/8/1412 AH,
And having reviewed the law of the Chartered Accountants issued by the Royal Decree No.
(M/12), dated 13/05/1412 AH,
And having reviewed Ash-Shura Council's Decree No. (60/60), dated 29/12/1423 AH,
And having reviewed the Council of Ministers' Decree No. (126), dated 14/05/1412 AH,
We have decreed the following:
First: Approving the amendment of the 28th Article of the Law of the Chartered Accountants
issued by the Royal Decree No. (M/12), dated 13/05/1412, to become as the following text:
"The 28th Article:
First: Anyone who violates the provisions of this law shall be punished with one of the
following disciplinary sanctions:
- Blame, warning, suspension from the practice of the profession for a period not exceeding six
months.
- Delisting the violator from the Register of the Chartered Accountants, and the decision of
suspension and the delisting shall be published at the expense of the violator in one or more of
the local newspapers.
Secondly: Without prejudice to the disciplinary sanctions set forth in this law, and any severer
sanction provided for in other laws, each person registered in the Register of the Chartered
Accountants who violates the provisions of this law and this violation constitutes a crime shall
be punished by imprisonment for a period not exceeding one year and a fine of not more than
(two hundred thousand) riyals and not less than (fifty thousand) riyals, or one of them, the
issued sanction decision shall be published at the expense of the violator in one or more of the
local newspapers.
Third: Without prejudice to the disciplinary sanctions set forth in this law, and any severer
sanction provided for in other laws, everyone who has committed any of the following acts
shall be punished with the sanctions specified in the item (second) of this Article:
1- Practicing the profession of accounting and auditing without obtaining a license.
2- Practicing the profession of accounting and auditing after the cancellation of the license or
delisting or termination and he did not follow the necessary procedures for renewal.
3- Opening or creating or managing an office to practice the accounting and auditing
profession without a license.
4- Providing untrue data or using illegal methods that resulted in granting him a license to
practice the profession of accounting and auditing or led to the renewal of the license.
5- Using a means of propaganda that would get the public to believe that he has the right to
practice the profession of accounting and auditing untruly.
6- Impersonating a title of the titles that are usually called on the practitioners of the
profession of accounting and auditing.
The Committee shall investigate the violations - of the provisions of the Law of the Chartered
Accountants stipulated in the 29th Article of this law - with the violator. If the Committee
found that person has committed any of the above, it issues a decision to close the office, the
following shall be done:
1- The Ministry of Commerce and Industry shall publish the closure decision in one or more
of the local newspapers at the expense of the violator.

2- Coordination shall be done with the competent authorities to close the office.
3- Referring the violation to the Board of the Grievances for consideration, and the judgment
shall be published in one or more of the local newspapers at the expense of the convicted
person."
Second: His Excellency Deputy Prime Minister and the Ministers, each within his
competences, shall execute this decree.
Fahd Ibn Abdul Aziz
The Council of Ministers Decree No. 397, dated 29/11/1433 AH
The Council of Ministers, after reviewing the file received from the Royal Divan No. 33251,
dated 12/07/1433 AH, containing a letter of His Excellency the Minister of Commerce and
Industry, the Chairman of the Saudi Authority of Chartered Accountants No. 2012/884,
dated 15/06/1433 AH, regarding the request of His Excellency to approve the decision of the
Board of Directors of the Saudi Authority of Chartered Accountants (2/10), dated 15/05/1433
AH, regarding the annexation of a representative of the Capital Market Authority and a
representative of the Department of Zakat and Income Tax to the membership of the Board of
Directors of the Saudi Authority of Chartered Accountants.
And having reviewed the paragraph (2) of the Article (24) of the Law of the Council of
Ministers issued by the Royal Order No. (A/13), dated 03/03/1414 AH,
And having reviewed the 24th Article of the Law of the Chartered Accountants issued by the
Royal Decree No. (M/12), dated 13/05/1412 AH,
And having reviewed the minutes No. (523), dated 21/10/1433 AH, prepared in the Authority
of Experts in the Council of Ministers,
And having reviewed the recommendation of the General Committee of the Council of
Ministers No. (895), dated 28/10/1433 AH,
Decree:
Approving the addition of a representative of the Ministry of Finance (Department of Zakat
and Income Tax) and a representative of the Capital Market Authority to be members of the
Board of Directors of the Saudi Authority of Chartered Accountants.

Law of Chartered Accountants

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The Law of Chartered Accountants

Royal Decree No. M/12 dated 13/05/1412 AH

The Law of Chartered Accountants

Ministerial Decree No. 993, dated 09/09/1414 AH

2- These businesses shall be of non-professional economic activities, such as owning

The Minister of Commerce, according to the powers assigned to him,

E- Providing an opportunity for the employees to participate in specialized professional

Ministerial Decree No. 977, dated 18/06/1420 AH

1- The Tasks of the Committee:

Ministerial Decree No. 718, dated 16/06/1415 AH

The Minister of Commerce,

shall notify the Chairman of the Committee in writing of that.

Ministerial Decree No. 946, dated 26/7/1419 AH

4- A certified copy of the document of obtaining his degree.

Ministerial Decree No. (1/398), dated 25/02/1421 AH

operating losses, regardless the loss in the books.

Decree the following:

the date of its publication.

Ministerial Decree No. (85), dated 26/01/1409 AH

Ministerial Decree No. 692, dated 28/02/1406 AH

this reference to the Supreme Committee of Chartered Accounting to express an opinion on

The Council of Ministers' Decree No. (126), dated 14/05/1424 AH

Royal Decree No. M/23, dated 06/02/1424 AH

of the local newspapers at the expense of the violator.

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