LCGPA Audit standards

General instructions (Doc OM-LRR-17 v2.0)

The 15 baseline rules every Local Content review engagement must follow, drawn directly from the LCGPA Audit standards.

8 min readUpdated 15 April 2026

Source

This article paraphrases the "General Instructions" section of the LCGPA Audit standards for facility-level Local Content review (Doc OM-LRR-17, v2.0). For binding wording, refer to the official PDF.
  1. Local Content is total in-Kingdom spend through Saudi labor, goods, services, assets, and technology.
  2. The facility-level LC ratio is the share of relevant expenses contributing to local content over a defined period.
  3. Procedures are agreed-upon (4400-aligned) and limited to verifying inputs to the official measurement model.
  4. Apply the procedures together with the measurement-model guidance, LCGPA instructions, and any contract terms ("the Provisions").
  5. The engagement is performed under ISRS 4400 (Agreed-Upon Procedures regarding financial information) as adopted in KSA.
  6. Direct all enquiries to the entity-designated "Appropriate Person(s)".
  7. The entity submits its model with the auditor's final report. LCGPA may then adopt or request adjustments.
  8. An auditor acting in a consulting capacity to build the model cannot then audit the same model.
  9. All amounts in the model must be supportable by the same evidence as the audited financial statements.
  10. If the FS carry an audit qualification, assess whether it impacts model figures and obtain LCGPA approval where it does.
  11. Activity-level measurement requires prior LCGPA approval.
  12. If the entity had no commercial activity in the period, get LCGPA approval before measuring or filing.
  13. The same amount may not be counted in multiple sections (no double-count between sections 3-7).
  14. For unincorporated joint ventures without a commercial registration, include the entity's share of joint costs by nature.
  15. All exceptions must be documented in the procedure findings.