Lakhasly

Accounting is considered one of the basics for the success of any commercial or economic activity, as it helps in clarifying and setting financial goals, preparing budgets, and financial planning. The auditor's role is to examine the financial statements or reports and determine the efficiency and soundness of the company's accounting system, and the opinion is expressed based on the fact of their audit.
The auditor performs the following tasks:
1- Auditing and reviewing companies’ financial information and providing feedback accordingly.
2- Ensure Verifying the validity and that the financial statements are free of any error or fraud and report it and
3- Submitting suggestions, results and reports based on the outputs of the external audit and evaluation of the data and financial situation.
4- Verify that accounting entries are recorded correctly in accordance with GAAP and International Financial Reporting Standards (IFRS).
5- Rely on the financial statements and upload them to the Lists website

So, in the beginning, as an auditor, I must first learn the format and reading of the four financial statements: the financial position statement, the income statement, property rights, and cash flows, and understand the items. Among the items that were new to me and that I got to know are:
1- Employee benefits: The present value of the company’s obligation under defined benefit plans is determined using actuarial valuation. This involves making many assumptions that may differ from actual developments in the future. This includes determining the rate of reduction, future salary increases, mortality rates and layoff rates. It consists of four sections:
A- Short-term employee benefits:
It is cash: such as salaries, wages, annual leave, or bonus plans that are paid within 12 months from the date of the fiscal year
As for non-monetary benefits: they are goods and services that are given free or at reduced prices to workers, such as medical care, housing loans for workers, and travel allowances.
B - Benefits after the end of the employees’ job service: such as retirement salaries and the costs of medical services during the retirement period.
C - End of service benefits provided to employees.
D- Long-term employee benefits: such as employee costs paid during the period of long-term disability.
Long service leave or sabbatical leave.
2- Zakat: The Authority uses the indirect method (funds sources method) to reach the zakat base, and this method is based on the following:
Additions: Adding the taxpayer’s internal sources of funds and what was spent from his external sources of funds to finance the deductible. Deductibles: Non-Zakatable assets and zakatable assets are deducted.
Zakat base = additions - deductions
A- Saudi establishments: They are required to pay zakat.
B- Non-Saudi establishments: Income tax applies to them and they pay 20% of profits.
C- Mixed enterprises: Zakat is applied to the Saudis’ percentage of the capital, and income tax is applied to non-Saudis at a rate of 20% of the net profit.