Article 17 of the Saudi Accounting and Auditing Profession Law
المادة 17 من نظام مهنة المحاسبة والمراجعة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
للجنة -أثناء نظر المخالفة وبناء على طلب الهيئة- أن تقرر منع المحاسب القانوني المخالف احترازيًّا من اعتماد القوائم المالية لعملائه، وإلزامه بالإفصاح عن جميع عملائه.
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 17 explained in plain English
This article gives the Committee the power to take a precautionary measure before it decides the violation, on specific conditions:
- Timing: while the violation is being heard, that is, before the final decision on it is issued.
- The request: at the request of the Authority, so the measure is not issued without this request.
Content of the measure: the Committee may decide:
- To bar the violating certified accountant as a precaution from approving his clients' financial statements.
- To require him to disclose all his clients.
The article does not set the duration of this bar, and it sets no conditions for it other than that it be while the violation is being heard and at the Authority's request.
It is preceded by Article 16, which allows the Committee to impose binding corrective measures in addition to the penalties, such as training courses and limiting the number of clients for a period of not less than one year and not more than two years. It is followed by Article 18, which allows the Committee to summon the violator to hear his statements and requires it to refer the violation to the Public Prosecution if it is accompanied by one of the crimes in Article 10. Anyone against whom a precautionary bar has been issued is advised to consult a lawyer specializing in commercial and corporate cases.
Practical example
While the Committee was hearing a violation attributed to a certified accountant in Riyadh, the Authority asked for a precautionary bar. The Committee decided to bar him from approving his clients' financial statements and to require him to disclose the list of his clients until it decides the violation.
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 17 of the Saudi Accounting and Auditing Profession Law
Can a certified accountant be barred from approving financial statements before a penalty is issued?
Yes. While the violation is being heard and at the Authority's request, the Committee may decide to bar him as a precaution from approving his clients' financial statements.
Is the violating accountant required to disclose his clients?
The Committee may require him to disclose all his clients, while the violation is being heard and at the Authority's request.
Does the article set the duration of the precautionary bar?
No. The article does not mention a specific duration for the precautionary bar.
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 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 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.