Learn about the new conditions for registering accounting offices with the Capital Market Authority
The Capital Market Authority presented a draft to amend the “Rules for Auditors of Establishments Subject to its Supervision” for public opinion poll for 30 calendar days.
The step, based on Royal Decree “M/30”, aims to enhance the quality of auditing and raise the efficiency of accountants in line with international practices.
3 main elements
Disclosure of the Board of Directors of The financial market The proposed project is based on three main elements, which are developing the conditions for registering accounting offices and certified public accountants, modernizing examination procedures, in addition to enhancing disclosure requirements in the annual transparency report.
The project’s reference text clarified strict requirements for registering Accounting, the most notable of which is that the office’s record is free of any provisions related to fraud or conduct that violates integrity during the previous five years, with the necessity of providing insurance coverage for the risks of professional failures.
The proposed amendmentsto require offices to have an appropriate quality management system and an advanced technical system for documenting financial statement audits, in addition to providing a sufficient number of audit managers who hold a fellowship from the Saudi Organization for Auditors and Accountants.
With regard to certified public accountants, the Authority highlighted the importance of participating with a sufficient amount of working hours in each audit process to ensure its quality, stressing that the audit operations of listed companies that are currently with the accountant at the same time should not exceed an appropriate limit.
The amendments drew attention to the requirements of the “Transparency Report,” as offices were obligated to publish it in Arabic and English within four months of the end of the fiscal year, while keeping it available to the public via the website for a period of no less than five years.
The document noted the need to include detailed information in the annual report, including the average years of professional experience for partners, audit managers, and employees, in addition to accurate disclosure of the total percentage of “Emiratization” in the accounting office, specifically in the audit department.
The Capital Market Authority warned against negligence in adhering to the instructions related to the examination, obliging the offices to provide the audit committees in listed companies with the final examination results within five days, while granting the authority the power to suspend or cancel the registration of violators.
The project touched on strict notification requirements, as the office must inform the authority immediately when any lawsuit is filed against it, or in the event of missing any of the conditions for continuing registration, while giving it a period of seven days to notify the administrative changes.
The Authority concluded its document by granting itself absolute authority to refuse to consider the registration application in the event that the applicant fails to provide the required additional information within the 30-day deadline, which establishes the principle of transparency and prompt compliance with market regulations.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
