Two establishments referred to the Public Prosecution for practicing accounting without a license in Saudi Arabia
In a decisive step aimed at protecting the national economy and enhancing transparency in the market, the Saudi Authority for Auditors and Accountants , in direct coordination with the competent security authorities, announced the seizure of two establishments that had engaged in practices that violated the accounting and auditing profession system in the Kingdom of Saudi Arabia, and they were referred to the Public Prosecution to take the deterrent legal measures.
Details of the violations detected
Investigations conducted by the Authority's oversight teams revealed that a licensed firm offering "non-securities financial advisory services" exceeded the scope of its license. The firm published promotional advertisements on its website and the social media platform "X" (formerly Twitter), offering "financial statement certification" services. This constitutes a clear implication of practicing accounting and auditing, which requires a separate license that the firm did not obtain, thus subjecting it to legal accountability.
In a related context, another commercial establishment was observed offering “auditing” services through its digital channels, in addition to placing an advertising board in front of its headquarters bearing phrases that suggest to the public that it practices the profession, without obtaining the regulatory licenses that authorize it to practice accounting and legal auditing activities.
Legal context and penalties
The Authority confirmed that these practices constitute a blatant violation of Article (10) of the Accounting and Auditing Profession Law . The law clearly criminalizes any act that misleads the public or suggests the right to practice the profession without a valid license, or if the license is revoked or suspended. Referring the violators to the Public Prosecution underscores the Authority's commitment to enforcing regulations and protecting the profession's integrity.
The importance of oversight and its impact on the business environment
These oversight measures are of paramount importance in light of the economic transformations underway in the Kingdom under Vision 2030, as reliable and audited financial statements are the cornerstone of building trust among local and international investors. The practice of auditing and accounting by unlicensed entities not only jeopardizes the reputation of the profession but can also lead to the issuance of misleading financial reports, causing significant harm to stakeholders and negatively impacting the soundness of economic decisions.
Through these ongoing campaigns, the Authority seeks to purify the market from arbitrary practices and ensure that all accounting services are provided in accordance with the highest standards of quality and professionalism, thereby enhancing the efficiency of the financial market and supporting the stability of the business sector.
Warning and call for compliance
The authority concluded its statement by emphasizing its continued monitoring and enforcement of regulations, affirming that it will not hesitate to apply the prescribed penalties against violators. It called upon all establishments and individuals to fully comply with the regulations and bylaws, and to verify the necessary licenses before providing any professional services, in order to avoid penalties that may include imprisonment and fines, and to preserve the integrity of the professional community.
