Capital Market Authority (Authority) signed today a “Memorandum of Understanding” (MOU) with the Saudi Organization for Certified Public Accountants (SOCPA) to develop a cooperation framework, between the two bodies, identifying and adopting the means of tasks' coordination which aims to strengthen supervision of audit firms. The MOU was signed by the Authority’s Board member, Mr. Khalid Alsolai, and by SOCPA Secretary General Dr. Ahmad Almeghames.
This MOU is based on the role of the Authority in developing and regulating the capital market, enhancing the stability and transparency of the capital market's environment, and in efforts to achieve one of its strategic plan goals, which is to enhance confidence in the capital market in line with the Financial Sector Development Program 2030.
The Authority highlighted that registration process for audit firms and relevant certified public accountants will commence immediately after the issuance of The Rules for Registering Auditors of Entities Subject to the Authority's Supervision (The Rules), and that the Authority aims to commence the inspection process of the audit firms during 2019 second quarter.
The Rules were published for public consultation in August for a period of (30) calendar days. Input from public consultation will be considered as the final Rules are drafted.
The Rules aim to set out the standards and conditions required for the auditors of the listed companies, investment funds, authorised persons to carry on securities business (except authorised persons to carry on advising activity), Saudi Stock Exchange, and Securities Depository Center(which will be defined, for the purpose of these Draft Rules, as entities subject to the Authority's supervision), including conditioning registration with the Authority in order to carry on audit engagements for entities subject to the Authority's supervision, the requirements for such registration and its procedures.
