The Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by the Professional Performance Quality Review Board, has adopted a mechanism for monitoring the remedial action plan for those licensed to practice accounting and auditing. This was issued under Board Resolution No. (8/2), dated 02-07-1447 AH, corresponding to 22-12-2025 AD, as a step aimed at enhancing the quality of professional performance and compliance with the approved standards and regulations.
The mechanism aims to document and monitor the implementation of remedial actions submitted by accounting and auditing firms to SOCPA, following the approval of the final findings report and the periodic inspection results record. This contributes to addressing findings identified during the inspection and preventing their recurrence in the future.
The mechanism includes a number of structured phases and procedures. It begins with receiving the remedial action plan within a specified timeframe and conducting a desk review to verify that it covers all findings included in the final report, as well as assessing the adequacy and effectiveness of the proposed remedial actions and their designated timelines. The mechanism also includes interim monitoring through periodic reports submitted by the firm, supported by the necessary documentation such as updated policies and procedures, work templates, and training records.
Additionally, the mechanism involves conducting on-site visits to accounting and auditing firms to verify the implementation of the remedial action plan on the ground. This includes inspecting samples of recently completed engagements and reviewing the firm's system of quality management, ultimately leading to a final assessment and the closure of findings after verifying their full remediation.
SOCPA affirmed that adopting this mechanism is part of its ongoing efforts to strengthen compliance with professional standards and improve the efficiency of quality management systems at accounting and auditing firms. This positively impacts the reliability of the profession and supports the achievement of objectives in the areas of governance, transparency, and quality of professional practices.
The remedial action plan monitoring mechanism can be viewed by clicking here.