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

According to the Saudi Gazette, the Saudi Organization for Certified Public Accountants (SOCPA) has intensified its oversight of the accounting profession, referring seven individuals and entities to the Public Prosecution since the beginning of the year. These referrals follow investigations into alleged violations of Article 10 of the Accounting and Auditing Profession Law, which governs the integrity of financial reporting within the Kingdom.

SOCPA has issued a formal warning to all certified public accountants, emphasizing that the submission of false or misleading information carries severe legal consequences. Under current regulations, offenders face penalties including a maximum prison sentence of five years and fines reaching up to SR2 million. The organization underscored that accountants bear full professional responsibility for the accuracy of the financial statements they certify.

Furthermore, the regulatory body clarified that it is a criminal offense for a certified public accountant to provide certification for financial reports that they, or their direct subordinates, have not personally audited. This measure is intended to ensure transparency and maintain public trust in the financial sector. SOCPA continues to monitor compliance across the industry to ensure that all practitioners adhere to the standards stipulated by the Accounting and Auditing Profession Law.