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

Saudi Arabia’s accounting regulator has referred seven individuals and entities to the Public Prosecution since the start of the year over suspected violations of the country’s Accounting and Auditing Profession Law.

The Saudi Organization for Certified Public Accountants said initial monitoring and investigation procedures uncovered offenses covered by Article 10 of the law. It did not identify the individuals or entities involved in the account provided.

SOCPA warned that falsifying or providing misleading information can result in a prison sentence of up to five years and a fine of as much as SR2 million. The warning highlights the potential legal consequences for those involved in preparing or certifying inaccurate financial information.

The organization also stressed the professional responsibility of certified public accountants for the financial reports and information they certify. It said an accountant commits an offense under Article 10 by certifying financial reports that the accountant, or staff working under the accountant’s supervision, did not audit.