Article 14 of the Saudi Accounting and Auditing Profession Law
المادة 14 من نظام مهنة المحاسبة والمراجعة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 تنفيذاً لهما.
2- مخالفة قواعد المهنة وسلوكها وآدابها، ومعايير المهنة والمعايير الفنية.
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 14 explained in plain English
This article explains the scope of work of the Committee established by Article 13, that is, the kinds of violations it hears and how they reach it.
How does a violation reach the Committee? The Committee hears violations on referral from the competent department in the Authority; referral is the way a violation is put before it.
Which violations does it hear? Two kinds:
- Violations of the Law: violating the provisions of the Law, or of the Implementing Regulations, or of the decisions issued to implement them.
- Professional and conduct violations: violating the rules, conduct and ethics of the profession, the standards of the profession, and the technical standards.
The scope of the first kind is wide, as it covers any provision of the Law, the Regulations or the implementing decisions. The Committee, as Article 13 organizes it, consists of four members: two with expertise in the profession and two legal advisors, one of whom is chairman.
It is followed by Article 15, which sets the penalties imposed on the certified accountant who commits these violations: warning, reprimand, cancellation of membership in the Authority, a fine between 10,000 and 500,000 riyals, and suspension from practice for a period not exceeding one year, with special provisions on repetition. Anyone referred to the Committee is advised to consult a lawyer specializing in commercial and corporate cases.
Practical example
A certified accountant failed to apply one of the adopted auditing standards when preparing his report on a company. The competent department in the Authority may refer the matter to the Committee as a violation of the standards of the profession, for it to hear under the Law.
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 14 of the Saudi Accounting and Auditing Profession Law
What violations does the certified accountants' violations committee hear?
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.
Who refers a certified accountant to the Committee?
The Committee hears violations on referral from the competent department in the Authority.
Is violating auditing standards a violation under the Law?
Yes. Violating the standards of the profession and the technical standards is among the violations the Committee hears under Article 14.
More articles on Professional Violations and Disciplinary Penalties
- Article 13
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.
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
- 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.