SOCPA warning: False statements and misleading information lead to 5-year jail and SR2 million fine

Saudi Organization for Certified Public Accountants (SOCPA) has taken action against seven individuals and entities suspected of committing various offenses related to falsified or misleading information, according to recent reports. The investigation revealed that these actions violated Article 10 of the Accounting and Auditing Profession Law, leading to a referral to the Public Prosecution.

SOCPA issued a stern warning about the severe consequences of providing false or misleading information, stating that such actions can result in a maximum sentence of five years in prison and a fine of up to SR2 million. The organization emphasized the critical role certified public accountants play in ensuring the accuracy of financial reports they certify. A certified public accountant's responsibility extends to the information they certify, even if it hasn't been audited by them or their subordinates.

The law criminalizes a range of offenses, including the provision of false information or forged certificates to obtain a license, misleading the public about the right to practice the profession, providing false information about the qualifications and experience of employees, and contributing to the dissemination of such information.

Dr. Ahmed Al-Mughamis, SOCPA's CEO, highlighted the importance of the reliability of financial reports, emphasizing that they are essential for maintaining financial health and protecting entities, beneficiaries, and users of financial statements.

Al-Mughamis stressed that the integration of SOCPA's roles with regulatory and judicial bodies is crucial in enhancing compliance and curbing irregular practices. This integration, he said, strengthens the integrity of financial information and the quality of professional services provided by certified public accountants.