Document background
The Engagement Letter For Preparation Of Financial Statements is a crucial document used in Saudi Arabia when a company engages professional accounting services for financial statement preparation. This document is essential for establishing clear professional boundaries, expectations, and responsibilities between the accounting firm and the client, while ensuring compliance with Saudi Arabian regulations, particularly SOCPA requirements. It becomes necessary when companies require professional assistance in preparing financial statements, whether due to regulatory requirements, internal policy, or lack of in-house expertise. The letter covers key aspects such as service scope, professional standards, deliverables, timelines, and fee structures, while incorporating specific requirements of Saudi Arabian business law, Zakat regulations, and relevant industry standards.
