SOCPA Announces the Start of the Implementation of the International Code of Ethics
SOCPA has announced the start of the optional implementation of the International Code of Ethics for early adapters, stressing that the implementation of the code will be mandatory by the middle of this year 2022. The implementation of the code will enhance the quality of accounting and auditing practices in the Kingdom and ensure their consistency with international practices.
SOCPA explained that the implementation of the code, which was adopted recently, is in line with the regulatory environment in the kingdom and will enhance the role of the profession in the national economy as well as attract foreign investments, increase transparency and reliability of financial statements, and related data.
The decision to adopt and implement the International Code of Ethics came after a very extensive process of preparations carried out by SOCPA. This Included the study and translation of the code, the clarification and explanation of its content, values, foundations, the issuance of the accreditation document, and the organization of several lectures and introductory seminars about the code. In addition to that, SOCPA worked on identifying ethics-related topics of importance to the local environment by members of the Professional Ethics Committee which they discussed with several specialists.
The code deals with professional accountants working in the private and public sectors as well as auditors. It also includes standards of independence in accordance with the international understanding of professional ethics, and it also contains indicative details and determinants of the cases likely to be faced by the professional accountant that creates a threat to the professional principles, including cases that professional accountant may face in the context to their responsibilities of disclosing cases violating law and regulation under the principle of confidentiality.
The CEO of the Saudi Organization for Charted and Professional Accountants (SOCPA), Dr. Ahmed bin Abdullah Al-Meghames, explained that the deadline for the implementation of the code is the middle of the current year 2022, as stated in the decision of SOCPA's Board of Directors in this regard, stressing that the scope of their implementation includes all practitioners of the profession of accounting and auditing, whether they are chartered accountants or working in the private and public sector.
He also added that the implementation of the International Code of Ethics for Professional Accountants complements the transformation efforts to international standards, which includes the standards of accounting and auditing, quality control, and ethics, pointing out that the transition to the International Code of Ethics lays the basis for communication with the International Board of Professional Ethics (IESBA), as well as those interested in professional ethics around the world.
It is worth mentioning that the implementation of the International Code of Ethics came after the formation of a workgroup consisting of members from SOCPA's Professional Ethics Committee and the assistance of several consultants specialized in legal and regulatory auditing. There were also various extensive studies of other countries' experiences in implementing the code, including some G20 countries. SOCPA also continues to update quality controls manuals and examines IESBA's amendments to implement them in the Kingdom.
To read the International Code of Ethics, click here.