What is Balanced Scorecard?
Balanced Scorecard is an audit-related concept used by external and internal auditors to assess whether a company’s financial statements are fairly presented and free of material misstatement. SOCPA-licensed auditors in Saudi Arabia apply this concept in accordance with International Standards on Auditing (ISA).
How It Works
- Auditor plans procedures specifically targeting Balanced Scorecard.
- Collect sufficient appropriate audit evidence.
- Document the work performed in audit working papers.
- Communicate findings to management and the audit committee.
- Issue the audit opinion based on cumulative findings.
Saudi Context
Under Saudi accounting practice, Balanced Scorecard is reported in line with IFRS as adopted by SOCPA. ZATCA-registered companies must keep supporting documentation and reflect Balanced Scorecard consistently in their VAT returns, zakat declarations, and Annual Financial Statements. Saudi Vision 2030 compliance and CMA disclosure rules add further reporting layers for listed firms.
Example
A Riyadh-based trading company applies Balanced Scorecard in its month-end close. The accounting team computes the figure using actual transactional data from Qoyod, compares it against the prior period and budget, and includes a narrative in the monthly management report so leadership can act on the result.