SOCPA and CMA Sign an MoU for Field Inspections Cooperation

The Saudi Organization for Chartered and Professional Accountants (SOCPA) signed yesterday, Wednesday, November 30, 2022, a memorandum of understanding (MoU) with the Capital Market Authority (CMA). The MoU aims to establish a mechanism for cooperation between the two parties regarding the organization of field inspections over the performance quality controls and its implementation for Auditors in establishments under the supervision of CMA.
The agreement aims to identify and establish ways to coordinate tasks between the two bodies and how to implement them and strengthen supervision and control over auditors in establishments subject to the supervision of CMA, each according to their statutory competence. It also defines the parties' tasks and clarifies any joint roles or arrangements between them in a way that contributes to protecting the interests of investors.
On this occasion, His Excellency Dr. Ahmed bin Abdullah Al-Mughames, CEO of SOCPA, explained that the agreement supports SOCPA in its aim of developing the accounting and auditing profession by reviewing, developing, and approving accounting and auditing standards and exercising its functions in the field supervision and control.
For his part, Mr. Sami Mohammed Al Sharafa, Director General of Financial Statements and Auditors at CMA, expressed the importance of the agreement and its role in deepening the quality of controls over accounting firms registered with the CMA. He stressed that this Mou would contribute to helping preserve the rights of investors and support their investment decisions by obtaining financial statements containing the greatest possible level of disclosure and transparency.
It is worth mentioning that this MoU is an implementation of the sixth item of the Council of ministers Resolution No. 416 dated 25-07-1442 H, which stipulates that "the Saudi Organization for Chartered and Professional Accountants and the Capital Market Authority should establish a mechanism for cooperation between them in field supervision and control over the quality of the profession's performance and its implementation for Auditors in establishments under the supervision of the Capital Market Authority."