The Saudi Authority of Auditors and Public Accountants (SOCPA), as part of a new regulatory mechanism aimed at increasing the level of commitment to professional standards and improving the quality of performance of auditing and accounting firms, has emphasized the importance of the commitment of accounting and auditing firms to submit remedial plans to address periodic inspection findings to the authorities within a period not exceeding 20 working days from the date of the authority’s request.
The agency explained that the system requires firms to submit a comprehensive remediation plan that covers all findings included in the final inspection report, with the approval of the responsible CPA. The mechanism also provides that the plan is subject to careful Secretariat review to ensure that the proposed procedures are linked to the recorded observations and to assess the appropriateness and effectiveness of the procedures and the period specified for the implementation of each procedure.
This mechanism includes conducting on-site visits to verify the actual application of corrective actions, as well as a step-by-step follow-up with periodic reports submitted by the office and supported by the necessary documentation, examining a sample of the initiatives and quality management systems implemented within the office, and, after ensuring that all findings have been corrected, leading to a final evaluation that determines the closure of the inspection file.
This action comes as part of the Authority’s continued efforts to strengthen professional supervision, improve the quality of work performed by audit and accounting firms, and ensure compliance with recognized professional standards. This contributes to establishing trust in the accounting and auditing profession, supports the integrity of accounting results, and improves the capacity of the national economy.
The Saudi Organization of Certified Public Accountants (SOCPA) has emphasized the importance of commitments by accounting and auditing firms to submit corrective action plans to organizations within a period not exceeding 20 business days from the date of the organization’s request to address findings from periodic inspections. This is part of a new regulatory mechanism aimed at increasing the level of compliance with professional standards and improving the quality of performance of audit and accounting firms.
The organization said that under this mechanism, companies are required to submit a comprehensive corrective action plan that covers all the findings in the final inspection report, with the approval of the responsible certified public accountant. The mechanism also provides that the plan undergoes a thorough desk review to ensure that the proposed actions are related to the recorded observations and to evaluate the appropriateness and effectiveness of the actions and the specified time period for carrying out each action.
This mechanism includes carrying out on-site visits to verify the actual implementation of corrective actions, as well as a step-by-step follow-up with periodic reports submitted by the company, supported by the necessary documentation, examining a sample of the initiatives and quality management systems carried out within the company and, after ensuring that all findings have been corrected, leading to a final evaluation that determines the closure of the inspection file.
This step is part of the organization’s ongoing efforts to strengthen professional oversight and improve the quality of work performed by audit and accounting firms, while ensuring compliance with recognized professional standards. This contributes to building trust in the accounting and auditing profession, supports the integrity of accounting results, and thereby strengthens the capacity of the national economy.
