4:09 PM - Tuesday 10 Dec 2019

SOCPA Internal Law

Saudi Organization for Certified public Accountants (SOCPA) By-laws

 

Name and purposes of the Organization


Article (1):
Saudi Organization for Certified Public Accountants (SOCPA) is a professional organization that operates under the supervision of the Ministry of Commerce in order to promote the accounting and auditing profession and all matters that might lead to the development of the profession and upgrading its status, and specifically entrusted with the following:
  1. Review , develop and approve accounting and auditing standards.
  2. Establish the necessary rules for fellowship certificate examination provided that such rules cover the professional , practical , theoretical aspects of the audit profession including all regulations pertaining to the profession.
  3. Organize courses of continuous education.
  4. Conduct special research work and studies covering accounting , auditing and other allied subjects.
  5. Publish periodicals, books and bulletins covering accounting and auditing subjects.
  6.  Establish an appropriate quality review program in order to ensure that Certified Public Accountants comply with accounting and auditing standards and the provisions of these Regulations and its by - laws.
  7. Participate in local and international committees and symposiums relating to the profession of accounting and auditing
 

SOCPA organizational structure


Article (2):
The Organizational structure includes members, general assembly, board of directors, technical committees and the secretariat general.

Members


Article (3):
The organization consists of:
    • 1. Full members ,namely :
    • A. All Certified Public Accountants licensed to practice the profession in the Kingdom at the time these Regulations come into force , provided that they attend the courses held by the Organization and pass the examinations within a period not exceeding three years from the date implementing the program prepared for that purpose, unless they obtain the fellowship certificate stipulated in para. (2) , Article (19) of these Regulations.
    • B. Those who hold the qualifications provided for in para. (4) Article (2) of these Regulations , provided that they obtain the fellowship certificate stipulated in para. (2) , Article (19) of these Regulations
    • 2. Associate members and they are those who apply for membership from among those who hold the Qualifications referred to in para. (4) , Article (2) of these Regulations.
 

The General Meeting

 

Article (4):

 
  • 4.1 The General Meeting consists of all full members who already paid their annual subscriptions. The General Meeting shall only hold its regular or extraordinary meetings if attended by the majority of its members. However, if the quorum required for holding such a meeting is not present an invitation shall be addressed for holding a subsequent meeting within thirty days of the previous meeting. In the latter case, the meeting shall be valid regardless of the number of attending members.
  • 4.2 General Meeting resolutions of the Organization are adopted by the majority voting of the attending members. However, in case of equal votes, the chairman shall have the casting vote.
  • 4.3 Ordinary General Meetings of the Organization shall be held at dates to be fixed at the beginning of each fiscal year of the Organization.
  • 4.4 An extraordinary general meeting may be held upon a request of one fifth of its members or its Board of Directors. The Organizations Board of Directors shall be in charge of preparing the agenda for the General meeting.

Article (5):


The General Meeting of the Organization shall have the following powers
  • 5.1 Approve the Organizations By-laws.
  • 5.2 Approve the Organizations annual budget and its final accounts for each year; appoint an auditor for its accounts and determine his fees.
  • 5.3 Approve both the annual working plan submitted by the Board and the annual report of the Board on the Organizations activity
  • 5.4 Elect the members representing Certified Public Accountants on the Organizations Board of Directors
  • 5.5 Discuss all items on the General Meetings agenda covering matters that fall within the scope of the affairs or interests of the Organization.





 

The Board of Directors

 

Article (6):

 
  • 6.1 The Organizations affairs shall be managed by a Board of Directors consisting of thirteen members, as follows
  • 1.The Minister of Commerce or his delegate. Chairman
  • 2.The Deputy Minister of Commerce. Member
  • 3. The Deputy Minister of Finance and National Economy for Financial Affairs and Accounts or any official of grade 14 and above appointed by the Minister of Finance and National Economy - Member
  • 4. The Vice President of the General Controllers Bureau or any official of grade 14 and above appointed by the President of the General Controllers Bureau - Member
  • 5. Two Saudi members of the teaching staff of the accounting department of one or more of the universities of the Kingdom, to be appointed by the Minister of Commerce upon the nomination of the Minister of Higher Education - Members
  • 6. A representative for the Council of Chambers of Commerce and Industry, to be appointed by the Minister of Commerce upon nomination by the said Council - Member
 
  • 7. Six members from among Saudi practitioner Certified Public Accountants to be elected by the Organization's general meeting for a term of three years, renewable for one more term. By way of exception, these members shall be appointed in the first Board of Directors for five years by a resolution to this effect from the Minister of Commerce. - Members
  • 6.2 A member who miss three consecutive meetings without an excuse acceptable by the Board, shall be considered as resigned.
  • 6.3 The Board of Directors meets once at least every ninety days at the invitation of its Chairman or his designated representative. The chairman shall invite the Board for a meeting if requested to do so in writing by at least four members Meetings of the Board of Directors shall be valid only if attended by the majority of members including the chairman or his designated representative. Decisions of the Board shall be adopted by the majority vote of members present, and in case of equal votes, the chairman shall have the casting vote In the event that a apposition of an elected board member becomes vacant due to death, resignation or not meeting a membership requirement, the ordinary general meeting shall elect another member to replace him.
  • 6.4 The Secretary General of the Organization shall attend the meetings of the Board of Directors without having the right to vote on decisions taken.
  • 7.1 Propose amendments it sees fit to the Certified Public Accountants Regulations; and the rules and decisions necessary for its implementation and any other regulations and rules relating to the accounting and auditing profession.
  • 7.2 Review, develop and approve accounting and auditing standards.
  • 7.3 Establish the financial and administrative rules for the Organization and determine its fiscal year.
  • 7.4 Prepare the organizations By-laws.
  • 7.5 Determine membership subscription fees and the method of their collection .
  • 7.6 Organize the fellowship certificate examinations to cover the professional, practical and theoretical aspects for the practice of auditing and other related subjects.
  • 7.7 Organize programs and courses of continuous education.
  • 7.8 Form technical committees and lay down the rules and procedures for the performance of their functions .
  • 7.9 Appoint the Secretary General of the Organization and his deputy provided they are Saudi Nationals who satisfy the conditions prescribed for granting the license to practice but are not in practice .The Board of Directors shall determine their duties, responsibilities, rights and the method of their financial remuneration.
  • 7.10 Prepare the Organizations financial statements and the Boards report and present to the General Meeting.

Technical committees


Article (8):
The Board of Directors shall form technical committees and lay down the rules and procedures for the performance of their functions. These committees shall include:
  1. Accounting standards committee.
  2. Auditing standards committee.
  3. Quality review committee.
  4. Examination committee.
  5. Education and training committee.
  6. Professional ethics committee.
  7. Nomination committee.
 

Secretariat General


Article (9):
The Secretariat General consist of:
  • 9.1 The Secretary General.
  • 9.2 Deputy Secretary General.
  • 9.3 Department of Financial and Administrative Affairs.
  • 9.4 Department of Education and Training.
  • 9.5 Department of Research and Information.
  • 9.6 The Secretaries of Technical Committees.

Resources of the Organization


Article (10):
The Organizations resources shall consist of :
  • 10.1 Subscriptions as determined by the Board of Directors.
  • 10.2 Government subsides.
  • 10.3 Gifts, donations and legacies which the Board decides to accept
  • 10.4 Return on the investment of the Organizations funds and proceeds from the publication and sale of research work, studies and other publications as well as income from services rendered by the organization.

The Auditor


Article (11):
The General Meeting of the Organization shall appoint annually a licensed Certified Public Accountant to be the auditor of the Organization. The auditor shall have access to the books and documents and to express any reservations he may have. He shall audit the organization's accounts and submit a report thereon to the General Meeting. However, the auditor or any of his partners shall not be a member of the Organization's Board of Directors. The General Meeting shall determine the auditor's fees, reappoint him or select another auditor.
 

Terms and conditions of membership


Article (12):
Membership shall be granted, according to procedures adopted by the Board, to any person who satisfies the terms and conditions prescribed in the CPAs' Regulations for granting the Organizations membership
 

Membership obligations


Article (13):
  • 13.1 A member shall comply with the professional code of ethics as well as with accountancy, audit and other technical standards issued by SOCPA.
  • 13.2 A member shall satisfy the requirements of continuous professional education prescribed by SOCPA Board.
  • 13.3 A member shall satisfy the requirements of the quality review program prescribed by SOCPA Board.
  • 13.4 A member shall comply with obligations prescribed in regulations, decisions and rules pertaining to the profession of accounting and auditing.
  • 13.5 A member shall pay membership annual subscription fees as set by SOCPA Board.

Penalties


Article (14):
Persons who do not comply with the provisions of these By-laws shall be subject to penalties stipulated in the CPAs' Regulations. Investigations for non-compliance with the provisions of these By-laws shall be carried out by the Investigation Committee prescribed in Article(29) of the CPAs' Regulations.