Saudi Arabia’s Capital Market Authority has approved amendments governing the registration of auditors serving entities under its supervision, with the changes set to take effect once officially published.
According to the announcement, the reforms aim to align the regulatory framework with international best practices, improve audit and financial disclosure quality, and strengthen investor confidence in the Saudi market.
The updated rules require audit firms to maintain enough audit managers who hold membership in the Saudi Organization for Chartered and Professional Accountants, or an equivalent qualification accepted by the authority. The required number must reflect the firm’s size and work.
Firms must also establish suitable quality management systems for auditing and reviewing financial statements, and cooperate with the authority during inspections. Where needed, they will be required to prepare corrective action plans and present final inspection findings to the audit committees of listed companies.
Transparency reports will need to include more information on ownership, governance and leadership, as well as the firm’s quality management system, those responsible for it and the results of its annual evaluation.
The authority previously opened the proposed amendments for public and specialist feedback through the Estitlaa platform and its website for 30 days.
Source: Jawlah
