Chapter 4 Chapter 4 Accounts and Financial Statements
Article (59) Accounting Records(a) A Licencee shall maintain such accounting and other records as may be specified by the Central Bank and shall have separate records for each branch abroad providing any of the services that are subject to this law.(b) Without prejudice to the provisions of the preceding paragraph, insurance and reinsurance companies shall maintain such records as may be specified by the Central Bank for the following:1. Insurance contracts signed by the company.2. Claims made against the company and actions taken thereon.3. Reinsurance contracts entered into by the company.4. Funds to be maintained according to this law.5. Names of insurance brokers, representatives of insurers, and insurance transactions concluded by them for the account of the company.6. Any other records required by the Central Bank.(c) Listed companies shall maintain accounts and other records as required by the Central Bank.
Article (60) Record Keeping
Records referred to in Article 59 of this law shall be kept for at least ten years at the Licencee's main office in the Kingdom or at such other places as the Central Bank may approve. Records shall be kept in such a format, as the Central Bank may deem suitable.
Article (61) Auditing of the Licencee's Accounts(a) Every Licencee shall appoint one or more qualified and experienced external auditors for its accounts for every financial year. A prior written approval by the Central Bank will be required before appointing an auditor.(b) If a Licencee fails to appoint an auditor within four months from the beginning of the financial year, the Central Bank shall appoint such auditor.(c) The Licencee shall pay the fees of the auditor regardless of the manner in which such auditor is appointed.(d) An auditor shall not be the chairman or a director in the Licencee's board or a managing director, agent, representative or taking up any administrative work therein, or supervising its accounts, or a next of kin to someone who is responsible for the administration or accounts of a Licencee, or having an extraordinary interest in a Licencee as the Central Bank may determine.(e) If any of the circumstances referred to in the preceding paragraph occurs after the appointment of the auditor, the Licencee must appoint another auditor.(f) The Licencee shall provide the external auditor with all information and assistance necessary for carrying out his duties.(g) The duties of the auditor shall include the preparation of a report on the final accounts. The report shall contain a statement on whether the Licencee's accounts are correct and reflect the actual state of affairs of the Licencee according to the auditing standards prescribed by the Central Bank and whether the Licencee has provided the auditor with any required information and clarifications.(h) The final audited accounts shall be presented to the general meeting of the Licencee together with the auditor's report. A copy of these documents shall be sent to the Central Bank at least fifteen days before the date of the general meeting.
If the Licencee is a foreign company, a copy of its final audited accounts together with the auditor's report shall be sent to its main office abroad.
Article (62) Final Accounts(a) Every Licencee must, within three months following every financial year, send to the Central Bank and make public its final audited accounts, including the profit and loss statement for all the transactions carried out until year end as well as any other financial statements required by the Central Bank. The final accounts shall be published in two local daily newspapers one in Arabic and the other in English.(b) The final accounts shall be prepared in accordance with the requirements of the Central Bank and shall be certified by the Licensee's external auditors.
Article (63) Additional Tasks for the Auditors(a) The Central Bank may request additional duties from the external auditor concerning licencees or listed companies. Such tasks may include:1. Submission of such additional information relating to the audited accounts as the Central Bank may specify.2. Enlarging the scope of the audit.3. Notifying the Central Bank of any financial violations discovered during the course of the audit.4. Notifying the Central Bank of any reservations regarding the accounts and statements of the Licencee.5. Notifying the Central Bank of any discrepancy in the financial systems, controls, and of any material inaccuracies or inconsistency in the final accounts of the Licencee or listed company.6. Preparing such financial reports and statements as required by the Central Bank. Auditor's fees for such additional tasks shall be born by the licensee or the listed company.(b) By carrying out such assignment requested by the Central Bank under the preceding paragraph, the auditor shall not be in breach of any duties towards the licencee, the listed company or the shareholders.
Article (64) Rules Governing Auditing
Subject to the rules of Law No. 26 of 1996 regarding auditors, the Central Bank may issue additional requirements that should be satisfied by any auditor auditing any licencee or listed company as well as any other tasks concerning the accounts and financial statements of a licencee or a listed company.