In line with the announced national capital market authority strategy, the affiliated Saudi body established on Sunday the Listed Companies and Capital Market Institutions Auditors Supervision Division.
The Saudi Capital Market Authority (CMA) also founded a committee that includes representatives from relevant government entities and independent experts.
CMA Board of Commissioners Acting Vice Chairman Dr. Abdulrahman Al Barrak pointed out that the importance of this Division and the committee comes in line with the need to improving market transparency and confidence in the financial statements/reports. He underlined its importance in creating a structure that is equivalent to other international capital markets oversight structures, which would support the attraction of foreign investment and cross listing.
This decision was based on the CMA analysis and benchmark of the international best practices relating to oversight of public entities auditors.
The CMA regulates and develops the Saudi Arabian Capital Market by issuing required rules and regulations for implementing the provisions of Capital Market Law. The basic objectives are to create an appropriate investment environment, boost confidence, reinforce transparency and disclosure standards in all listed companies and protect the investors and dealers from illegal acts in the market.
Al Barrak mentioned that the Division and the Committee will be focused on establishing standards and conditions required for the auditors who audit the books of joint stock companies listed on the Exchange and Capital Market Institutes; the registration of certified public accountants licensed by the Ministry of Commerce and Investment and registered in the Certified Public Accountants Register, who are providing audit services to listed companies and who are in compliance with the CMA standards and conditions; supervision and inspection of such auditors within the CMA scope of work; cooperating with the Saudi Organization of Certified Public Accountants to improving the financial reporting quality of listed companies.
It is worth mentioning that the Capital Market Law gave the CMA the right to establish standards and conditions required for auditors who audit the books of entities subject to the control and supervision of the Authority.
CMA will continue to announce other developments surrounding the auditors supervision during the coming period.