Article 16 of the Saudi Accounting and Auditing Profession Law
المادة 16 من نظام مهنة المحاسبة والمراجعة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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- إلزامه بحضور دورات تدريبية محددة.
2- تحديد عدد عملائه ونوعهم والخدمات المقدمة إليهم لمدة لا تقل عن (سنة) ولا تزيد على (سنتين).
3- تكليفه بتقديم برنامج ملائم يحدد ما يتخذه من إجراءات لإزالة المخالفة وتصحيح الوضع بما يكفل عدم تكراره إياها. وتجري الهيئة فحصًا مستقلًّا للأعمال التي يؤديها خلال مدة التصحيح.
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 16 explained in plain English
This article does not content itself with punishment, but aims to improve the performance of the violating certified accountant. It allows the Committee, in addition to the penalties in Article 15 (warning, reprimand, cancellation of membership, a fine of SAR 10,000 to 500,000, and suspension for up to a year), to consider taking binding corrective measures, including:
- Training courses: requiring him to attend specified training courses.
- Restricting activity: limiting the number and type of his clients and the services provided to them, for a period of not less than one year and not more than two years.
- A correction program: requiring him to submit a suitable program setting out the steps he will take to remove the violation and correct the situation so as to ensure it is not repeated. The Authority conducts an independent review of the work he performs during the correction period.
Note that these measures come in addition to the penalties, not in place of them, and that the text gives the Committee the power to "consider taking them", so they are left to its discretion in each case. Once it decides on them, they become binding on the accountant.
It is followed by Article 17, which allows the Committee, while hearing the violation and at the Authority's request, to bar the accountant as a precaution from approving his clients' financial statements and to require him to disclose all his clients. Anyone on whom such measures are imposed is advised to consult a lawyer specializing in commercial and corporate cases.
Practical example
Repeated violations were proven against a certified accountant in documenting audit work. In addition to the fine, the Committee required him to attend a training course, limited the number of his clients for one year, and required him to submit a correction program, and the Authority independently reviews his work during this period.
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 16 of the Saudi Accounting and Auditing Profession Law
What corrective measures are imposed on a certified accountant?
Requiring him to attend specified training courses, limiting the number and type of his clients and the services provided to them, and requiring him to submit a program to correct the violation.
For how long is the number of a violating accountant's clients limited?
For a period of not less than one year and not more than two years.
Are corrective measures an alternative to the penalty?
No. They are in addition to the penalties in Article 15.
Articles this article refers to
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 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 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.