Saudi Arabia tops G20 for audit and accounting standards

An analysis of the Audit and Accounting Practices Index has revealed that Saudi Arabia leads G20 countries included in the index, reflecting the high quality of professional practices in the Kingdom’s business environment and the advancement of its accounting sector.

Over the past decade, the audit and accounting profession in Saudi Arabia has undergone significant transformation in line with Vision 2030, including updates to legislation, professional standards, talent development, and performance quality oversight. These changes have helped boost confidence in financial statements and reports.

In June, the Saudi Organization for Auditors and Accountants announced that the Kingdom had risen to ninth place globally among countries and economies covered by the Audit and Accounting Practices Index, as reported in the IMD World Competitiveness Yearbook 2026. Denmark, Ireland, Taiwan, Austria, Iceland, Switzerland, Singapore, and Hong Kong ranked ahead of Saudi Arabia.

The Saudi accounting sector has implemented more than 300 reforms covering legal, procedural, and professional aspects, strengthening the preventive role of the profession, safeguarding financial transactions, improving efficiency, and supporting disclosure quality in line with expanding investments and economic diversification.

Dr. Ahmed bin Abdullah Al-Moghames, CEO of the Saudi Organization for Auditors and Accountants, stated: “The quality of audit and accounting work enhances trust in financial statements, which investors rely on to assess opportunities, financiers to evaluate risks, and companies to make decisions.” He emphasized that developing the profession supports the enablers of the national economy and the attractiveness of the business environment.

He explained that the development journey included adopting international accounting and auditing standards, issuing the Accounting and Auditing Profession Law, organizing the authority, and adopting the International Code of Ethics for Professional Accountants. He noted that Saudi Arabia is the only country in the Middle East—and among the few globally—to fully adopt all international professional standards, according to the International Federation of Accountants.

Al-Moghames added that the authority has adopted 128 international and local standards, supported by 59 amendments and responses to 2,131 inquiries, in addition to professional publications and clarifications. The authority is an official translator of international standards for financial reporting, sustainability, auditing, and ethics, providing Arabic references that support practice quality and report reliability.

Regarding performance quality oversight, he noted the execution of 12,294 inspection operations, including 8,694 desk reviews and 3,600 field inspections. Inspection and oversight activities have grown by 132% over the past five years, strengthening compliance monitoring and addressing performance gaps.

He reported that a total of 1,691 professional licenses have been issued, with a 101% increase over the past five years. The "Murakhass" platform now offers 15 integrated digital services and has digitized licensing procedures by 100%. The "Qawaem" program has shifted financial statement submissions to an electronic format, providing analyzable data to support planning and performance assessment.

Al-Moghames stressed that talent development is fundamental to practice quality, with 9,316 professionals obtaining certifications—a 235% increase over the past five years. The total number of trainees reached 153,377, with a 295% rise in trainees during the same period. The authority offers fellowship exams in both Arabic and English and has expanded international recognition, granting exemptions for certificate holders.

He added that aligning education with labor market needs included launching the SOCPA educational curriculum, providing 2,620 training and qualification grants, and establishing four accounting simulation labs at universities. These efforts are complemented by 43 local partnerships, including cooperation with 32 universities, as well as 10 international partnerships and participation in global professional standards development groups.

Al-Moghames noted that the authority’s strategy for 2026–2030 will continue to build on these achievements by further enhancing practice quality, professional compliance, service development, the profession’s attractiveness, and expanding international recognition of the fellowship, thereby reinforcing trust in the accounting sector’s outputs and its contribution to the national economy.