In the application of the Business Books Law, Merchant is defined as the individual merchant and a company which main purpose is to conduct business.

Every merchant whose capital exceeds one hundred thousand riyals shall be obliged to keep the commercial books provided for in Article (1) of the Commercial Book Law. In case disputed in terms that his capital does not exceed one hundred thousand riyals, the Ministry of Commerce may consult the General Authority of Zakat and Tax to verify the merchant's capital.

The original journal, inventory book, and general ledger shall be in accordance with the forms attached to this regulation.

It is permissible to record the data related to commercial books via computer for institutions and companies that use computers in their accounting in accordance with the following rules:

First) The computer system must have the following characteristics:

• A. The system used in processing the information recorded on the computer must allow inspection of this information at any time.
• B. Printed data (outputs) must be extracted from the computer on a regular periodic basis (weekly, monthly, quarterly, etc.), and these outputs must be paginated, dated, and include all information entered into the computer to serve as a document that can be referred to in order to identify any additions or deletions from the information recorded on those outputs, so that the items appearing in the outputs can be linked and compared to the individual input entries one by one.
• C. Each item appearing in the outputs must be supported by a written document, and in the absence of that due to direct data entry into the computer, the item must be supported by a written clarification.
• D. The ability to extract and re-extract the aforementioned outputs must be available at any time.
• E. The establishment must document the system for entering and directing information (accounting entries) in the computer, computer programs if prepared by the establishment itself, instructions related to operating the computer, and the functions and responsibilities of the individuals operating it, for reference when needed.
• F. The establishment must have sufficient security measures to ensure the safety and integrity of the computer devices and programs, and have adequate control regulations to prevent tampering with the programs and information recorded on the computer ("inputs and outputs"), and the means and controls must be subject to examination and review.

Second) Commercial establishments that use computers for their commercial books shall be directly responsible for the accuracy of the accounting data recorded in the commercial books, in a manner that truly matches the data, documents, and information preserved in the files. In the event of any violation, the establishment and anyone responsible for it shall be subject to the provisions of the approved laws and instructions.

Third) The licensed legal accountant practicing the profession must ensure in his report on the establishments whose accounts he audits that the establishment records the data related to commercial books on the computer according to the system, and that the financial statements conform to what is recorded on the computer.

Prior to using any commercial books, each page thereof shall be numbered and shall be submitted to the district Chamber of Commerce and Industry in the merchant's area of activity for approval by the signature of the competent employee on the first and last pages of each book and by endorsing the Chamber's stamp, upon verifying the numbering sequence.

In each Chamber of Commerce, a special register shall be assigned to register the number of commercial books approved for each merchant, their types and date of approval, in addition to the names of the merchant's projects for which the books shall be assigned.

Commercial books shall be free of any spaces, writing in margins, writing off or insertions in between what is already written in them. In the event of errors in any data entry, such error shall be corrected by another record at the date of its discovery.

The merchant may not use a new book unless all pages of the last book re used and the last page therein is signed after the last entry by one of the licensed legal accountants and issuing a certificate from the accountant with the same, or upon submitting the book to the competent employee in the competent commercial and industrial chambers to sign for the same purpose.

The merchant and his heirs shall, upon ceasing the business activity, submit the commercial books of the shop to the competent employee in the Chamber of Commerce and Industry to mark them accordingly.

A decree by the Minister of Commerce is required for the appointment of the employees of the Chambers of Commerce and Industry assigned to carry out the commercial books tasks as provided for in these Regulations.

Thee Public Prosecution representative in the Ministry and its branches, each according to its jurisdiction, shall undertake general prosecution before the Board of Grievances for violations of the provisions of the Commercial Book Law and its Implementing Regulations.