SOCPA Becomes First Arab Member of IAASB and IESBA

Riyadh, May 08, 2024 — The Saudi Organization for Chartered and Professional Accountants (SOCPA) has become the first Arab professional body to join the standard-setting bodies of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA), following its participation in the periodic meetings held last week in New York.

Context and Background

SOCPA, represented by its Auditing Standards Board (ASB) and Professional Conduct and Ethics Committee (PCEC), participated in the meetings of the two international boards. The organization was represented by Ahmad Al-Shanqiti, Chairman of the Professional Ethics Committee, and Dr. Yasser Al-Nafisa, Advisor to the Professional Standards Department, who attended virtually. The meetings served as a platform to welcome SOCPA as the first Arab professional entity to join the membership of both boards, recognizing its valuable experience in applying international standards.

Key Details

The IAASB and IESBA are independent standard-setting boards under the auspices of the International Federation of Accountants (IFAC). The IAASB develops auditing, assurance, and related standards, while the IESBA sets ethics standards for professional accountants. SOCPA’s admission reflects the Kingdom’s growing influence in the global accounting profession. Dr. Ahmed bin Abdullah Al-Meghames, CEO of SOCPA, stated, “The organization’s accession is a reflection of the importance of the accounting and auditing profession in the Kingdom, its remarkable development over the past years, and an effective contribution to international efforts to develop international standards.” This milestone underscores Saudi Arabia’s commitment to aligning its professional practices with international best practices.

Implications and Impact

SOCPA’s membership in these prestigious international boards enhances Saudi Arabia’s role in shaping global auditing and ethics standards. It also signals the Kingdom’s dedication to transparency, accountability, and high-quality financial reporting, which are crucial for attracting foreign investment and fostering economic growth. The move is expected to facilitate greater international collaboration and knowledge exchange, benefiting the Saudi accounting profession and its professionals. It also positions Saudi Arabia as a leader in the Arab world in the field of accounting and auditing standards.

Vision 2030 Alignment

This achievement aligns with Saudi Vision 2030, which aims to diversify the economy, enhance transparency, and develop a robust financial sector. By participating in international standard-setting, SOCPA contributes to the Kingdom’s goal of creating a competitive and trustworthy business environment. As Saudi Arabia continues its journey toward economic transformation, such international engagements reinforce its commitment to global integration and sustainable development.

20 Questions

Q1. What is SOCPA?

A1. SOCPA is the Saudi Organization for Chartered and Professional Accountants, the official body regulating the accounting and auditing profession in Saudi Arabia. It oversees professional standards, ethics, and certification.

Q2. What are IAASB and IESBA?

A2. The IAASB sets international auditing and assurance standards, while the IESBA establishes ethics standards for accountants. Both operate under the International Federation of Accountants.

Q3. What did SOCPA achieve recently?

A3. SOCPA became the first Arab professional entity to join the IAASB and IESBA, marking a significant milestone for Saudi Arabia and the region.

Q4. When and where did the meetings take place?

A4. The meetings were held last week in New York, with SOCPA representatives participating both in person and virtually.

Q5. Who represented SOCPA at the meetings?

A5. Ahmad Al-Shanqiti, Chairman of the Professional Ethics Committee, and Dr. Yasser Al-Nafisa, Advisor to the Professional Standards Department, represented SOCPA.

Q6. What did the international boards recognize about SOCPA?

A6. They recognized SOCPA’s valuable experience in applying international standards and welcomed it as the first Arab member.

Q7. What did SOCPA’s CEO say about the accession?

A7. Dr. Ahmed bin Abdullah Al-Meghames said it reflects the importance of the accounting profession in the Kingdom and its contribution to developing international standards.

Q8. Why is this membership significant for Saudi Arabia?

A8. It enhances Saudi Arabia’s role in global standard-setting, promotes transparency, and supports economic diversification under Vision 2030.

Q9. How does this benefit the Saudi accounting profession?

A9. It aligns local practices with international best practices, facilitates knowledge exchange, and elevates the profession’s global standing.

Q10. What are the ASB and PCEC?

A10. The Auditing Standards Board and the Professional Conduct and Ethics Committee are SOCPA bodies responsible for setting auditing and ethics standards in Saudi Arabia.

Q11. How does this align with Vision 2030?

A11. Vision 2030 seeks a transparent and diversified economy; SOCPA’s international engagement supports these goals by strengthening financial reporting and accountability.

Q12. What is the role of IFAC?

A12. IFAC is the global organization for the accountancy profession, supporting the IAASB and IESBA in developing international standards.

Q13. How many Arab entities have joined these boards before?

A13. SOCPA is the first Arab professional entity to join, setting a precedent for regional participation.

Q14. What impact will this have on international standards?

A14. It brings Saudi expertise to the table, contributing to the development of standards that reflect diverse economic contexts.

Q15. Will this affect accounting practices in Saudi Arabia?

A15. Yes, it will further align Saudi practices with global norms, enhancing quality and consistency.

Q16. What does SOCPA’s participation mean for the region?

A16. It positions Saudi Arabia as a leader in the Arab world for accounting standards and encourages other nations to follow suit.

Q17. How does this support foreign investment?

A17. By promoting transparency and high-quality financial reporting, it boosts investor confidence and attracts foreign capital.

Q18. What are the next steps for SOCPA?

A18. SOCPA will continue to actively participate in international boards, contributing to standard development and implementing best practices locally.

Q19. Does this membership come with any obligations?

A19. SOCPA will be expected to contribute to standard-setting activities and promote the adoption of international standards.

Q20. How does this reflect Saudi Arabia’s global engagement?

A20. It demonstrates the Kingdom’s proactive role in international organizations, aligning with its Vision 2030 goal of global integration.

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