Article 13 of the Saudi Accounting and Auditing Profession Law
المادة 13 من نظام مهنة المحاسبة والمراجعة
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تنشأ بقرار من الوزير لجنة (أو أكثر) من أربعة أعضاء، اثنين من ذوي الاختصاص بالمهنة ومستشارَين قانونيَّين يكون أحدهما رئيساً للجنة، للنظر في المخالفات المنصوص عليها في المادة (الرابعة عشرة) من النظام.
2- تصدر قواعد عمل اللجنة، وتحدد مكافآت رئيسها وأعضائها وأمينها بقرار من الوزير وتصرف من ميزانية الهيئة.
3- دون إخلال بأحكام الأنظمة ذات العلاقة، يجوز لمن صدر في حقه قرار بالعقوبة التظلم منه أمام المحكمة الإدارية.
4- لا يخل تطبيق العقوبة المنصوص عليها في النظام بحق الرجوع بالتعويض على المتسبب بالضرر نتيجة المخالفة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 13 explained in plain English
This article governs the Committee that hears administrative and professional-conduct violations, and contains four rules:
- Establishment and composition: one or more committees are established by decision of the Minister, of four members: two with expertise in the profession and two legal advisors, one of whom chairs the committee. Its task is to hear the violations provided for in Article 14, namely violating the provisions of the Law, the Regulations or the decisions issued to implement them, and violating the rules, conduct, ethics and standards of the profession and the technical standards, on referral from the competent department in the Authority.
- Rules of work and remuneration: the committee's rules of work are issued, and the remuneration of its chairman, members and secretary is set, by decision of the Minister, and paid from the Authority's budget.
- Challenge: without prejudice to the provisions of the related laws, a person against whom a penalty decision has been issued may challenge it before the Administrative Court.
- Compensation: applying the penalty provided in the Law does not prejudice the right to claim compensation from whoever caused the damage as a result of the violation.
The last rule means that punishing the accountant does not remove the injured party's right to compensation, which is connected with Article 12, which makes compensation claims and private-right claims a matter for the competent judicial body. Anyone against whom a committee decision has been issued and who wants to challenge it is advised to consult a lawyer specializing in administrative cases.
Practical example
The competent department in the Authority referred a certified accountant to the Committee for violating auditing standards, and it issued a penalty decision against him. He has the right to challenge the decision before the Administrative Court, and the client who was harmed by the violation retains the right to claim compensation from him.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 13 of the Saudi Accounting and Auditing Profession Law
Who forms the committee that hears violations by certified accountants?
It is established by decision of the Minister and consists of four members: two with expertise in the profession and two legal advisors, one of whom chairs the committee.
Can a decision of the violations committee be challenged?
Yes. A person against whom a penalty decision has been issued may challenge it before the Administrative Court, without prejudice to the provisions of the related laws.
Does punishing the accountant prevent the injured party from requesting compensation?
No. Applying the penalty does not prejudice the right to claim compensation from whoever caused the damage as a result of the violation.
Articles this article refers to
More articles on Professional Violations and Disciplinary Penalties
- Article 14
The 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.
تتولى اللجنة -بناءً على إحالة من الإدارة المختصة في الهيئة- النظر في أي من المخالفات الآتية: 1- مخالفة الأحكام الواردة في النظام أو اللائحة أو القرارات الصادرة
- Article 15
The 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.
1- دون إخلال بأي عقوبة ينص عليها نظام آخر، يعاقب المحاسب القانوني الذي ارتكب أيًّا من المخالفات الواردة في المادة (الرابعة عشرة) من النظام بعقوبة، أو أكثر، ممّا
- Article 16
The 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.
للجنة -بالإضافة إلى العقوبات الواردة في المادة (الخامسة عشرة) من النظام- النظر في اتخاذ تدابير تقويمية ملزمة على المحاسب القانوني المخالف تتضمن ما يأتي: 1- إلزا
- Article 17
The 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.
للجنة -أثناء نظر المخالفة وبناء على طلب الهيئة- أن تقرر منع المحاسب القانوني المخالف احترازيًّا من اعتماد القوائم المالية لعملائه، وإلزامه بالإفصاح عن جميع عملا
- Article 18
The 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.
للجنة استدعاء المخالف لسماع أقواله، فإذا اقترنت المخالفة بأي من الجرائم المنصوص عليها في المادة (العاشرة) من النظام، فعلى اللجنة اتخاذ ما يلزم لإحالتها إلى الني
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.