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 Saudi 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 Law, and they were referred to the Public Prosecution to complete the legal procedures against them.

Details of observed violations

The oversight and monitoring procedures carried out by the Authority's teams revealed that a licensed financial advisory firm (excluding securities) was exceeding the scope of its license. The firm published promotional advertisements on its website and the social media platform "X" (formerly Twitter), falsely claiming to offer "financial statement certification" services. This conduct directly implies the practice of accounting and auditing without the necessary regulatory license, thus misleading the public and constituting a clear violation of regulations.

In a related incident, another business was found to be advertising "review" services on its website and displaying a sign outside its premises with phrases suggesting it offered such services. It was determined that the business lacked the necessary license to provide these sensitive services, prompting immediate intervention from regulatory authorities.

Legal framework and Article 10

The Authority confirmed that these practices fall under the crimes stipulated in Article 10 of the Accounting and Auditing Profession Law in the Kingdom of Saudi Arabia. The law explicitly criminalizes impersonating a certified public accountant or misleading the public in any way regarding the right to practice the profession without a valid license, or if the license has been revoked or suspended.

The importance of professional organization and its economic impact

These moves come within a broader context in the Kingdom aimed at strengthening the investment environment and enhancing confidence in financial reporting. The accounting and auditing profession plays a pivotal role in safeguarding the national economy, as audited financial statements are the cornerstone upon which investors and banks base their economic decisions.

Through these strict measures, the authority seeks to:

• Protecting the professional community: Ensuring fair competition between licensed offices and preventing intruders from discrediting the profession.
• Enhancing transparency: Ensuring that the financial reports issued by establishments reflect their true financial reality, which contributes to attracting foreign and local investments.
• Keeping pace with Vision 2030: The vision requires a business environment characterized by high governance and compliance with regulations and laws.

Warnings and legal responsibility

The Saudi Organization for Certified Public Accountants (SOCPA) emphasized that it will not tolerate any violations of regulatory standards and will continue its efforts to monitor any transgressions that may compromise the integrity of the profession or undermine the reliability of financial reports. SOCPA urged all establishments and individuals to fully comply with regulations and avoid providing any professional services outside the scope of their licenses, in order to avoid severe penalties that may include imprisonment, fines, and public shaming in accordance with judicial rulings.