Article 18 of the Saudi Accounting and Auditing Profession Law
المادة 18 من نظام مهنة المحاسبة والمراجعة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 النيابة العامة للتحقيق فيها.
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 18 explained in plain English
This article deals with two matters in the Committee's work:
First: summoning. The Committee may summon the violator to hear his statements. The text here is permissive ("the Committee may"), and gives the violator an opportunity to present his position.
Second: referral to the Public Prosecution. If the violation is accompanied by any of the crimes provided for in Article 10, the Committee must ("the Committee shall") take what is necessary to refer it to the Public Prosecution for investigation.
The crimes meant in Article 10 are punishable by imprisonment for up to 5 years and a fine of up to two million riyals, or either, and include:
- Providing incorrect information or forged certificates to obtain the license.
- A certified accountant providing false information, or concealing information that should have been disclosed, in a report, account or document, knowing of it.
- Certifying a report contrary to the truth, or a distribution of fictitious profits, or financial reports that neither he nor those working under his supervision audited.
- Disclosing the secrets of the entity to which he provides his services.
A single incident may thus be a professional violation heard by the Committee and at the same time a crime that the Public Prosecution is competent to investigate. This article is preceded by Article 17, which allows the Committee, at the Authority's request, to bar the violator as a precaution from approving his clients' financial statements. Anyone summoned before the Committee over an incident that may involve a crime is advised to consult a lawyer specializing in criminal cases.
Practical example
The Committee summoned a certified accountant to hear his statements on a violation of auditing standards, and it became clear that he had signed financial reports that neither he nor anyone working under his supervision had audited. Here the Committee must take what is necessary to refer the matter to the Public Prosecution for investigation.
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 18 of the Saudi Accounting and Auditing Profession Law
Does a certified accountant have the right to be heard before being punished?
The article provides that the Committee may summon the violator to hear his statements.
When does the violations committee refer an accountant to the Public Prosecution?
If the violation is accompanied by any of the crimes provided for in Article 10, the Committee must take what is necessary to refer it to the Public Prosecution.
Is referral to the Prosecution optional for the Committee?
No. The text says "the Committee shall", so referral is mandatory whenever the violation is accompanied by a crime in Article 10.
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 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
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.