In force Last amended 22/4/1447 AH
Saudi Accounting and Auditing Profession Law
نظام مهنة المحاسبة والمراجعة
The law replaced the 1412 AH Certified Accountants Law. It covers definitions, licensing to practice the profession, the licensing procedure and cancellation, the duties and prohibitions of the certified accountant, suspension, penalties and violations, and the bodies that investigate and decide on violations and compensation claims.
- Articles
- 22
- In force
- 22
- Amended
- 5
- Issued
- 27/7/1442 AH
Issued by: مرسوم ملكي م/59 بتاريخ 1442/7/27 هـ · قرار مجلس الوزراء رقم 416 بتاريخ 1442/7/25 هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Accounting and Auditing Profession Law by topic
Definitions and General Provisions of the Law3 articlesLicensing the Certified Accountant6 articlesCertified Accountant's Obligations2 articlesProhibitions on the Certified Accountant1 articleCeasing to Practice Accounting1 articleAccounting Profession Offenses and Penalties5 articlesProfessional Violations and Disciplinary Penalties6 articles
Articles of the Saudi Accounting and Auditing Profession Law
- Article 1The article defines the key terms of the Accounting and Auditing Profession Law, including the Authority, the Board, the profession, the license, the certified accountant, the Committee and the Minister.Amended M/169
- Article 2The article prohibits practicing the accounting and auditing profession without first obtaining a license under the provisions of the Law.
- Article 3The article sets the conditions for licensing a full-time certified accountant, such as Saudi nationality, qualification, membership, experience and good conduct, and allows licensing a non-full-time practitioner under controls set by the Regulations.
- Article 4The article governs the license application: it is submitted to the Authority, which issues a decision approving it or rejecting it with reasons within a period set by the Regulations, and the rejection may be challenged before the Administrative Court.Amended M/169
- Article 5The article allows the Authority to issue a decision canceling a certified accountant's license without prejudice to the penalties of Article 10, with the right to challenge before the Administrative Court, and without canceling his membership in the Authority.Amended M/169
- Article 6The article requires a certified accountant to have a main office and allows him to open branches, requires notifying the Authority of the addresses and any change within 14 days, and treats notices sent to his registered address as effective.
- Article 7The article lists eight obligations of the certified accountant, including signing his reports, adopting his personal name for his office, observing standards, keeping documents for 10 years, and employing a proportion of Saudis.
- Article 8The article prohibits the certified accountant from auditing an entity in which he has an interest, exceeding the maximum number of joint-stock companies, disclosing his clients' information, and auditing joint-stock companies and banks within 5 years of his license.
- Article 9The article requires a certified accountant who stops or is suspended to notify the Authority and his clients within 30 days, treats the license as canceled on final suspension or a stop of over two years, and requires listing pending work.
- Article 10The article punishes with imprisonment of up to 5 years and a fine of up to two million riyals, or either, eight crimes, including falsifying license information, misleading the public, and certifying reports contrary to the truth.
- Article 11The article assigns to the Public Prosecution the investigation of the crimes provided for in Article 10 of the Law, and the consideration of bringing the criminal case before the competent court.
- Article 12The article provides that the competent judicial body hears compensation claims and private-right claims brought by or against the certified accountant arising from the application of the Law.
- Article 13The article establishes a four-member committee by decision of the Minister to hear the violations in Article 14, allows challenging its decisions before the Administrative Court, and preserves the right to compensation.
- Article 14The article defines the violations the Committee hears on referral from the competent department in the Authority: violating the Law, the Regulations or their decisions, and violating the rules, ethics and standards of the profession.
- Article 15The article sets the penalties for professional violations: warning, reprimand, cancellation of membership, a fine of SAR 10,000 to 500,000, and suspension for up to a year, and allows doubling the fine and striking off the license on repetition.
- Article 16The article allows the Committee, in addition to the penalties of Article 15, to impose binding corrective measures on the violating accountant, such as training courses, limiting his clients for one to two years, and submitting a correction program.
- Article 17The article allows the Committee, while hearing the violation and at the Authority's request, to bar the certified accountant as a precaution from approving his clients' financial statements and to require him to disclose all his clients.
- Article 18The article allows the Committee to summon the violator to hear his statements, and requires it, if the violation is accompanied by one of the crimes in Article 10, to take what is necessary to refer it to the Public Prosecution.
- Article 19The article allows a certified accountant whose license was struck off to request its reinstatement 5 years after the striking-off decision takes effect, and the Board or its delegate decides the request under the conditions and procedures for issuing a license.Amended M/169
- Article 20The article assigns to Authority employees named by the Board the detection of the crimes in Article 10 and of violations of the provisions of the Law, its Regulations and its decisions, without prejudice to the competences of the relevant bodies.Amended M/169
- Article 21The article provides that the Accounting and Auditing Profession Law replaces the Certified Accountants Law issued by Royal Decree No. M/12 dated 13/5/1412 AH, and repeals everything that conflicts with it.
- Article 22The Law takes effect 90 days after its publication in the Official Gazette, and the Minister issues the Regulations and implementing decisions within 90 days of publication, to take effect with it.