RIYADH — In line with the Saudi Capital Market (CMA) Authority Strategy, the Authority originated the Listed Companies and Capital Market Institutions Auditors Supervision Division. The Authority as well originated a committee that includes representatives from some relevant governmental entities and independent experts.

The CMA Board of Commissioners Acting Vice Chairman Dr. Abdulrahman AlBarrak indicated 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, and for the purpose of 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.

Dr. AlBarrak further said the Division and the Committee will be focused on establishing the 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; and contributing with the Saudi Organization of Certified Public Accountants to improving the financial reporting quality of listed companies.

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. — SG