Two people referred to the Public Prosecution for violating the accounting and auditing system

As part of the ongoing oversight efforts by relevant authorities in the Kingdom of Saudi Arabia to enhance financial transparency and ensure a sound business environment, the Saudi Organization for Certified Public Accountants (SOCPA) the detection of serious professional violations that warranted referring the perpetrators to the Public Prosecution. This step comes within the framework of SOCPA's strategy to regulate the quality of professional performance and protect the national economy from practices that could harm market credibility.

Details of observed violations

The Authority clarified, through meticulous investigative procedures, that two individuals were apprehended for committing acts classified as crimes under Article 10 of the Accounting and Auditing Profession Law. The first case involved an individual practicing the profession and issuing an audit report on the financial statements of a company despite having previously been licensed , which constitutes a clear circumvention of the law and misleads users of financial statements.

The second case involved a licensed accountant who issued an audit report that concealed material information he was professionally and legally obligated to disclose. This concealment constitutes a breach of the principles of integrity and objectivity upon which the profession is founded, negatively impacting the accuracy of financial information provided to stakeholders.

Legal context and penalties

These referrals are based on strict regulatory provisions, as Article 10 of the regulations criminalizes any means that suggest the violator has the right to practice the profession without a license, or if the license is revoked or suspended. The criminalization also extends to providing false information or concealing material facts in any document or financial report. These laws aim to put an end to any manipulation that could infringe upon the rights of shareholders and investors.

Economic importance and boosting market confidence

These measures are of paramount importance, extending far beyond individual punitive measures. The accounting and auditing sector serves as a vital safeguard for financial markets. Amidst the significant economic growth underway in the Kingdom as part of Vision 2030 , attracting both foreign and domestic investment relies heavily on the reliability of financial reporting and corporate transparency. Rigorous oversight that prevents financial misrepresentation enhances the Kingdom's ranking in international transparency indices and bolsters the stability of economic institutions.

The authority concluded its statement by affirming its determination to continue its monitoring tours without leniency, urging all practitioners to fully comply with professional standards and regulations, in order to avoid legal accountability and to preserve the honor of the profession and its position in supporting the national economy.