Announcement of the Issuance of The Capital Market Authority Board's Resolution to Adopt the Rules for Registering the Auditors of Entities Subject to the Authority's Supervision

Thursday, December 20, 2018 at 8:19 PM

Thu Dec 20, 2018 20:19

In continuance to the role of the Capital Market Authority in developing and regulating the capital market and seeking to make the capital market environment more stable, and seeking to achieve the objectives of the (Financial Sector Development Program) one of the programs of the Saudi Arabia's Vision 2030, and based on the Capital Market Law issued by the Royal Decree No. (M/30) Dated 02/06/1424H, the Capital Market Authority Board has issued its Resolution to adopt and publish the Rules for Registering Auditors of Entities Subject to the Authority's Supervision "the Rules". The Rules shall be effective upon its publication date, except for the following provisions:
1.    Paragraph (a) of Article 5 of the Rules, prohibiting any person that has not been registered with the Authority from carrying on auditing engagements for entities subject to the Authority's supervision, as such paragraph will become effective on 30/06/2019G.
2.    Subparagraph (a) of paragraph (2) of Article 8 of the Rules, requiring for the registration of a certified public accountant that such certified public accountant must obtain a fellowship certificate in accordance with the Law of Certified Public Accountants, as such subparagraph will become effective on 20/12/2021G.
The  Rules aim to set out the standards and conditions to be met by the auditors of Entities Subject to the Authority's supervision, including conditioning their registration with the Authority in order to conduct auditing engagements for entities subject to the Authority's supervision and setting out the requirements and procedures for such registration. In addition to stating the continuing obligations imposed on the registered accounting firm and certified public accountants, the provisions of the suspension and cancellation of registration and the provisions of ceasing to carry on audit engagements for entities subject to the Authority's supervision.
The most prominent provisions of the Rules is conditioning the registration of the accounting firm and the certified public accountant with the Authority in order to conduct auditing engagements for entities subject to the Authority's supervision, and among the requirements to register the accounting firm and the certified public accountant  with the Authority is being licensed to practice the auditing profession in accordance with the Law of Certified Public Accountants. Further, publishing the transparency report on annual bases is one of the continuing obligations imposed on the registered accounting firm.
It's worth noting that the Authority has published the Rules Draft on its website for public consultation, for a period of (30) calendar days, and has taken into consideration the public consultation comments and views while preparing the Rules.
The Rules can viewed via the following link:


Rules for Registering Auditors of Entities Subject to the Authority's Supervision
قواعد تسجيل مراجعي حسابات المنشآت الخاضعة لإشراف الهيئة

 

In case of any enquiries regarding registration procedures, kindly contact the Auditors' Supervision Department through the following  e-mail: 
CMA-ASD@cma.org.sa