Riyadh, Ramadan 06, 1442 AH, corresponding to April 18, 2021 AD, SPA
The Board of Directors of the Saudi Organization of Auditors and Accountants approved the document approving the rules of conduct and ethics for the international profession, in line with the regulatory environment in the Kingdom.
The Secretary-General of the Saudi Organization of Auditors and Accountants, Dr. Ahmed Al-Maghamis, emphasized the importance of this transformation, which constitutes a qualitative leap in the direction of enhancing the quality of the practices of the accounting and auditing profession in the Kingdom, and its consistency with international practices.
He explained that the adoption of the document implementing international rules for the ethics of the accounting and auditing profession completes the system of transformation into a set of international standards, which included accounting and auditing standards, quality control and the ethics and behavior of the profession. The Kingdom’s Vision 2030 programs, and supports the foundations of attracting foreign investments, and enhances the transparency and reliability of financial transactions, indicating that this accreditation comes in conjunction with the Cabinet’s decision to approve the system of the accounting and auditing profession and to organize the authority.
Dr. Ahmed Al-Maghamis stated that the scope of application of these rules includes all practitioners of the profession of accounting and auditing, whether they are certified accountants or working in the private and public sectors, pointing out that this shift will add to the Arab Library a translated version of international rules, that can be used by all practitioners in the world. Arab, and laying the basis for communication and communication with the International Council of Professional Ethics and those interested in professional ethics around the world.
With regard to the timeframe for the implementation of the approved international rules, he indicated that the deadline for the application of these rules is the middle of the next year (2022 AD), and early implementation can be made from its date, indicating that the authority will present publications to clarify the mechanism of application of these rules, and introductory lectures on its components, and evidence will also be created. Work for quality control, as well as the amendments approved by the International Council of Ethics for the purpose of application in the Kingdom and the issuance of approved updates.
For his part, a member of the Professional Conduct and Ethics Committee and the head of the work team, Ahmed Al-Shanqeeti, indicated that, under the supervision of the Professional Conduct and Ethics Committee, many important steps were taken to reach the accreditation document, where a working group was formed from members of the Professional Conduct and Ethics Committee, and the use of expert advisors in the field of auditing And the legal and legal field, and studying the experiences of some countries, including the G20 countries, in terms of applying the rules of conduct and ethics for the international profession. In addition, contacts were made with the International Council of Professional Ethics (IESBA), who graciously interacted with the authority’s direction, and held introductory workshops on international rules, and its president participated in the Saudi Accountants Forum held at the beginning of the year 2020 AD in topics related to professional ethics, in addition to providing the work team with some resources And the clarifications related to the international framework and its details.
Al-Shanqeeti stated that the committee adopted the work on translating the latest version of the international rules (version 2018 AD), taking into account the similar terminology used in other relevant technical standards. The work team also analyzed and identified issues of professional ethics of importance to the local environment and discussed them with specialists, indicating that after they were formulated The draft accreditation document through the work results was presented with the translation of the international rules in general through the authority’s website, and the work team studied the public’s views and discussed them through holding discussion sessions and updating the accreditation document accordingly, after which the draft accreditation document was presented to the board of directors of the authority. And approved.
For his part, the President of the International Council of Ethics, Dr. Stafford Thomadxi, congratulated the Saudi Organization of Auditors and Accountants for this important achievement in approving the application of international rules of ethics for the profession of accounting and auditing (including standards of independence) in the Kingdom.
He pointed out that international rules are one of the most comprehensive frameworks for professional ethics that are widely used in the world, and that many G20 countries have adopted them, hoping that the application of international rules in the Kingdom will achieve the desired goals, and that cooperation between the International Council and the Authority will be strengthened. .
In turn, the team advisor, Dr. Yasser Fallata, explained that the international framework is based on a comprehensive conceptual framework to deal with all circumstances that may occur to a professional accountant and threaten the five basic principles of professional ethics, which include integrity, objectivity, confidentiality, professional behavior, professionalism and the necessary care.
He indicated that the new rules include a special section for workers in the private and public sectors and another section for independence standards in accordance with the framework of international concepts of professional ethics, and they also contain indicative details and determinants of cases likely to be encountered by a professional accountant, which create a threat to the principles of ethics, including cases that may The professional accountant is exposed to the responsibilities of disclosing cases of violation of laws and regulations under the principle of confidentiality, as well as the conditional fees and the mechanism for advertising the services of the professional accountant, and the rules clarify the basis for dealing with public interest establishments, including setting timeframes for the rotation associated with the audit partner and the work team.
Dr. Fallata pointed to the importance of the reference framework for the ethics of the profession in the Kingdom of Saudi Arabia, which is based on the tolerant Islamic Sharia, as well as the important amendments to what is contained in the international rules according to what the authority considered, and which are mainly related to the prevention of collection for the provision of non-assured services. For the audit client, and allowing the auditor to provide other assurance services to the audit client according to an approved list (white list) to be prepared and updated by the authority on a regular basis, in order to enhance the independence of the auditor and take into account the regulations in force in the Kingdom.
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Riyadh, Ramadan 06, 1442 AH, corresponding to April 18, 2021 AD, SPA