The Non Disclosure Agreement With External Auditors is a critical document used when engaging external audit firms in Saudi Arabia. It is specifically designed to protect confidential business information, financial records, and proprietary data that must be shared during audit processes. This agreement ensures compliance with Saudi Arabian legal requirements, including the Companies Law, SOCPA regulations, and relevant financial sector regulations. It is typically implemented at the commencement of an audit engagement or when changing auditors, and remains effective throughout the audit relationship and beyond. The document addresses both physical and digital information handling, regulatory compliance requirements, and specific provisions for audit working papers and findings.
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1. Parties: Identification of the company and the external audit firm, including their registered addresses and commercial registration numbers
2. Background: Context of the audit engagement and need for confidentiality agreement
3. Definitions: Key terms including 'Confidential Information', 'Audit Services', 'Authorized Personnel', 'Audit Period', and 'Working Papers'
4. Scope of Confidential Information: Detailed description of what constitutes confidential information in the audit context
5. Confidentiality Obligations: Core obligations regarding the protection and non-disclosure of confidential information
6. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including regulatory requirements
7. Information Security Measures: Required security protocols for handling and storing confidential information
8. Audit Team Obligations: Specific requirements for audit team members accessing confidential information
9. Return or Destruction of Information: Procedures for handling confidential information after audit completion
10. Duration and Survival: Term of the agreement and surviving obligations
11. Breach and Remedies: Consequences of breach and available remedies
12. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction provisions
1. Digital Data Protection: Additional provisions for digital information handling and cybersecurity - include if audit involves significant digital records
2. International Transfer: Provisions for cross-border data transfer - include if audit firm has international operations
3. Shariah Compliance: Explicit Shariah compliance provisions - include if specifically required by company policy
4. Group Company Provisions: Extensions to group companies - include if audit covers multiple related entities
5. Regulatory Compliance: Specific regulatory compliance provisions - include if company is in regulated sector
6. Third Party Rights: Rights of third parties regarding confidential information - include if third party information is involved
1. Schedule 1 - Authorized Personnel: List of authorized audit team members with access rights
2. Schedule 2 - Security Protocols: Detailed information security requirements and procedures
3. Schedule 3 - Categories of Confidential Information: Detailed categorization of confidential information types
4. Appendix A - Form of Confidentiality Undertaking: Individual confidentiality undertaking for audit team members
5. Appendix B - Information Handling Procedures: Specific procedures for handling different types of confidential information
6. Appendix C - Data Breach Protocol: Procedures to be followed in case of data breach or unauthorized disclosure
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Banking
Insurance
Manufacturing
Real Estate
Healthcare
Technology
Telecommunications
Energy
Retail
Construction
Education
Professional Services
Mining
Transportation
Hospitality
Relevant Teams
Legal
Finance
Compliance
Internal Audit
Information Security
Risk Management
Corporate Governance
Treasury
Board Secretariat
Relevant Roles
Chief Financial Officer
Financial Controller
Chief Executive Officer
Legal Counsel
Compliance Officer
Board Secretary
Audit Committee Chairman
Finance Director
Chief Risk Officer
Information Security Officer
Corporate Secretary
Treasury Manager
Financial Reporting Manager
Internal Audit Manager
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