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Abstract

Saudi Companies Law 2015 entrusted to the auditors the auditing and 1437 2015/ reviewing of companies’ accounts and verifying the fairness of their financial statements, in addition to also stipulating auditors’ civil responsibility. To establish this responsibility, we had to identify the nature of the relationship between the auditor and the audited company. We concluded that it was a contractual relationship. We cannot consider the auditor’s obligations in isolation using a single analytical procedure. The auditor’s civil responsibility to the company and partners is contractual, and if not adhered to, could cause a tort. Provisions of chartered accountants’ law and Companies Law identified the elements of civil responsibility. Terms were generic, covering errors and compensation, including damages. The plaintiff in a civil responsibility lawsuit against the auditor may be the company, each shareholder, or a joint collective lawsuit, including every injured person. Where multiple auditors in a company participated in error, we found them responsible for compensation. Arthur Andersen

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