MUSCAT : This decision also requires all entities subject to FSA’s supervision and jurisdiction to take all necessary actions to terminate their contracts aforementioned firm and appoint a new external auditor from among those accredited by the Authority, as from the date 25 August 2024.

This decision was taken by FSA due to the firm’s violations of the applicable laws and regulations while providing auditing services to several companies listed on Muscat Stock Exchange and other regulated entities.

FSA noted that the firm accepted accounting practices that did not comply with International Financial Reporting Standards (IFRSs) and International Standards on Auditing (ISAS), which in turn affected the integrity of financial statements disclosed to investors. These practices include inadequate auditing procedures of the work of component auditors and lack of communication with them, issuing audit reports before completing detailed examination procedures of significant balances and transactions, conducting inappropriate tests to verify balances recognized in financial reports, and failing to address discrepancies between financial reports and non-financial reports included in the annual report.

Additionally, the firm provided non-audit services to audit clients in violation of legal requirements.
It is worth noting that the Authority had previously issued a set of regulations governing the operations of auditing firms to ensure their compliance with ISAS and the requirements of IFRSs.

FSA emphasizes continuous evaluation of the audit firms’ performance through its regulatory examination teams, as it recognizes the importance of the role played by these firms, and believes that audit firms are the main pillar for protecting investors and other stakeholders in providing accurate and reliable information to make the right decisions.

For all the latest news from Oman and GCC, follow us on Twitter, Instagram and LinkedIn, like us on Facebook and subscribe to our YouTube page, which is updated daily.