Under Article 18 of the Saudi Companies Law, most companies incorporated in the Kingdom are required to appoint at least one licensed auditor to audit their financial statements. The auditor must be licensed to practice in Saudi Arabia, and the terms of their appointment — including fees, scope of work, and tenure — are determined in accordance with the Law and the company's governing documents.
There is a notable exception for micro and small companies: under Article 19, these businesses are generally exempt from the mandatory auditor appointment requirement, unless they meet specific conditions that trigger the obligation (for example, exceeding certain revenue or headcount thresholds). If your company qualifies as micro or small, you may be able to operate without a formal external audit, which can reduce compliance costs significantly.
Regarding auditor independence, Article 20 makes clear that the auditor must operate independently in accordance with professional standards approved in the Kingdom, and is prohibited from performing certain other roles for the same company while serving as auditor. For expats, it is advisable to work with a well-established Saudi-licensed audit firm familiar with both local regulations and international accounting standards to ensure full compliance.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.