Article 5 of the Saudi Accounting and Auditing Profession Law
المادة 5 من نظام مهنة المحاسبة والمراجعة
The article allows the Authority to issue a decision canceling a certified accountant's license without prejudice to the penalties of Article 10, with the right to challenge before the Administrative Court, and without canceling his membership in the Authority.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
دون إخلال بالعقوبات المنصوص عليها في المادة (العاشرة) من النظام، للهيئة إصدار قرار بإلغاء الترخيص. ويجوز لمن صدر قرار إلغاء ترخيصه التظلم منه أمام المحكمة الإدارية. ولا يترتب على إلغاء الترخيص إلغاء عضويته بالهيئة.
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 5 explained in plain English
This article gives the Saudi Organization for Auditors and Accountants the power to issue a decision canceling the license, and sets three rules for it:
- No prejudice to criminal penalties: cancellation is without prejudice to the penalties provided for in Article 10, namely imprisonment for up to 5 years and a fine of up to two million riyals, or either, for whoever commits crimes including providing incorrect information or forged certificates to obtain the license, or an accountant certifying a report contrary to the truth. A license may therefore be canceled and its holder also punished if one of these crimes is proven against him.
- The right to challenge: a person whose license has been canceled by decision may challenge it before the Administrative Court.
- Membership remains: cancellation of the license does not cancel the person's membership in the Authority; the license and the membership are two separate matters.
The article does not specify the grounds on which a license is canceled. It was amended to its present text by Royal Decree No. (M/169) dated 10/8/1446 AH.
Anyone against whom a cancellation decision was issued and who wants to challenge it is advised to consult a lawyer specializing in administrative cases, and if a criminal accusation is also involved, a lawyer specializing in criminal cases.
Practical example
The Authority issued a decision canceling the license of a certified accountant in Jeddah. He has the right to challenge the decision before the Administrative Court, and he remains a member of the Authority despite the cancellation of his license, because cancellation does not entail canceling membership.
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 5 of the Saudi Accounting and Auditing Profession Law
Can the Authority cancel a certified accountant's license?
Yes. Article 5 provides that the Authority may issue a decision canceling the license, without prejudice to the penalties provided for in Article 10.
How do I challenge a decision canceling an accounting license?
A decision of cancellation may be challenged before the Administrative Court.
Does canceling the license cancel my membership in the Authority?
No. The article provides that canceling the license does not entail canceling membership in the Authority.
Amendment history
Royal Decree No. M/169 — 10/8/1446 AH
Official amendment text (Arabic)
- عُدلت هذه المادة وذلك بموجب المرسوم الملكي رقم (م/169) وتاريخ 1446/8/10هـ، لتصبح بالنص الآتي: "دون إخلال بالعقوبات المنصوص عليها في المادة (العاشرة) من النظام، للهيئة إصدار قرار بإلغاء الترخيص. ويجوز لمن صدر قرار إلغاء ترخيصه التظلم منه أمام المحكمة الإدارية. ولا يترتب على إلغاء الترخيص إلغاء عضويته بالهيئة".
Original text before the amendments (Arabic)
دون إخلال بالعقوبات المنصوص عليها في المادة (العاشرة) من النظام، للوزارة بناءً على توصية الهيئة إصدار قرار بإلغاء الترخيص. ولمن صدر قرار إلغاء ترخيصه التظلم منه أمام المحكمة الإدارية. ولا يترتب على إلغاء الترخيص إلغاء عضويته بالهيئة.
Articles this article refers to
More articles on Licensing the Certified Accountant
- Article 1Amended by M/169
The article defines the key terms of the Accounting and Auditing Profession Law, including the Authority, the Board, the profession, the license, the certified accountant, the Committee and the Minister.
يكون للكلمات والعبارات الآتية –أينما وردت في هذا النظام– المعاني المبينة أمام كل منها ما لم يقتض السياق غير ذلك: النظام: نظام مهنة المحاسبة والمراجعة. اللائحة:
- Article 2
The article prohibits practicing the accounting and auditing profession without first obtaining a license under the provisions of the Law.
لا تجوز مزاولة المهنة إلا بعد الحصول على الترخيص وفقاً لأحكام النظام.
- Article 3
The article sets the conditions for licensing a full-time certified accountant, such as Saudi nationality, qualification, membership, experience and good conduct, and allows licensing a non-full-time practitioner under controls set by the Regulations.
يتم الترخيص لطالب الترخيص وفقاً لما يلي: 1- المتفرغ لمزاولة المهنة وفقاً للضوابط الآتية: أ- أن يكون سعودي الجنسية. ب- أن يكون كامل الأهلية. ج- أن يكون حاصلاً عل
- Article 4Amended by M/169
The article governs the license application: it is submitted to the Authority, which issues a decision approving it or rejecting it with reasons within a period set by the Regulations, and the rejection may be challenged before the Administrative Court.
1- يقدم طلب الترخيص إلى الهيئة وفقاً للإجراءات التي يحددها المجلس. 2- تصدر الهيئة قرارها بالموافقة على منح الترخيص، أو بالرفض مسبباً لطلب الترخيص، خلال مدة تحدد
- Article 19Amended by M/169
The article allows a certified accountant whose license was struck off to request its reinstatement 5 years after the striking-off decision takes effect, and the Board or its delegate decides the request under the conditions and procedures for issuing a license.
يجوز للمحاسـب القانوني الذي شُطب ترخيصه وفقـاً لأحكام النظام، أن يطلب إعادة الترخيص بعد انقضاء (خمس) سنوات من تاريخ نفاذ قرار الشطب، ويبت المجلس أو من يفوضه في
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.