MUSCAT — The FSA has reiterated its commitment to enhancing the accounting and auditing profession through rigorous supervision, regulatory measures, and field inspections aimed at improving professional quality and compliance with International Standards on Auditing (ISA).

Since the issuance of Royal Decree No. 20/2024, the FSA has implemented a series of actions to advance accounting and auditing standards for 2024–2025. Key supervisory activities included 9 field visits, 7 workshops and meetings, 11 stakeholder engagements, and 10 cooperation initiatives with local and international entities.

The Authority also took regulatory actions against firms failing to meet legal and professional requirements, including 3 firm deregistrations, 2 suspensions from practicing, and 4 official warnings. Persistent regulatory observations highlighted recurring violations at audit firms, such as practicing without a license, audit reports signed by unauthorised individuals, and failure to retain audit files and working papers for the legally required 10-year period.

Key ISA-related compliance issues identified include:
• ISA 210: Missing engagement letters between audit firms and clients.
• ISA 320: Failure to document materiality of significant misstatements.
• ISA 550: Inadequate auditing of related-party transactions.
• ISA 230: Lack of documentation of audit work and working papers.
• ISA 500: Absence of sufficient and appropriate audit evidence.
• ISA 700: Audit reports not compliant with required structure, form, and content.