Saudi Accountants Face Up To Five Years In Jail For False Information

The Saudi Organization for Certified Public Accountants (SOCPA) has referred seven individuals and entities to the Public Prosecution since the beginning of this year following initial monitoring and investigation into suspected offences under Article 10 of the Accounting and Auditing Profession Law.

 

SOCPA warned that providing false or misleading information can result in imprisonment for up to five years and a fine of up to SR2 million. The organisation also stressed that certified public accountants are responsible for the accuracy of financial reports and information they certify.

 

Under Article 10, a certified public accountant may commit an offence by certifying financial statements that have not been audited either by the accountant or by employees working under their supervision. Those found guilty of one or more of the offences covered by the article may face imprisonment for up to five years and/or a fine of up to SR2 million, without prejudice to any additional penalties prescribed under other laws.

 

Offences Covered

 

The law also criminalises providing false information or forged certificates to obtain a professional licence, as well as misleading the public in any manner about the right to practise the profession.

 

It further covers cases where a certified public accountant knowingly provides false information or conceals information that is required to be disclosed. Certifying a report that does not reflect the truth or contains false information in a document required by law or professional regulations is also considered an offence.

 

Other violations include disclosing confidential information relating to an entity for which professional services are provided, providing false information about the qualifications or experience of employees, or assisting in the provision of such information.

 

SOCPA said the measures form part of its efforts to strengthen compliance with professional and regulatory requirements and address practices that could undermine the reliability of financial information.

 

The organisation said the reliability of financial reports is a fundamental element of financial health and is important for protecting entities, beneficiaries and users of financial statements.

 

It also highlighted the role of coordination between the accounting and auditing regulatory system and relevant regulatory and judicial authorities in strengthening compliance, addressing irregular practices and improving the integrity of financial information and the quality of professional services.