MUSCAT: The decision was issued by the FSA’s Professional Conduct Committee following a review that identified, among other violations, the alleged offering of the firm’s professional licence for rent through an electronic platform, the absence of the firm owner’s signature on most audit reports and failures to comply with professional auditing standards.

The FSA said allowing a professional licence to be rented could enable unlicensed entities to practise accounting and auditing in Oman by using the licence and legal professional status of the licensed owner without fulfilling the required legal conditions and procedures.

According to the authority, such practices undermine the legal framework governing the profession and weaken regulatory safeguards designed to protect the public interest and maintain confidence in accounting and auditing services.

The inspection also found that the firm owner’s signature was missing from the majority of audit reports issued by the company. Inspectors identified additional shortcomings, including insufficient and inappropriate audit evidence to support professional opinions.

Other findings related to audit planning, materiality and the accumulation of identified misstatements during the audit process. The inspection also found that the firm had failed to carry out necessary procedures to verify the physical existence and condition of inventory.

The FSA stressed that professional licences for accounting and auditing are issued based on legal and professional considerations concerning the licensee, including competence, responsibility and compliance with applicable laws.

It said such licences cannot be transferred or made available for use or exploitation by third parties except within the limits permitted by law.

The authority further urged all entities under its supervision to comply with applicable legislation, regulations and approved professional standards, saying adherence to these requirements is essential to strengthening confidence in Oman’s non-banking financial sector.