The Saudi Organization for Chartered and Professional Accountants (SOCPA) has referred a commercial establishment to the Public Prosecution after detecting that it had advertised professional services subject to SOCPA oversight without obtaining the required license.
The referral followed initial inspection and investigation procedures, which found that the establishment had advertised on its website that it provided professional services falling under SOCPA’s supervision despite not holding the necessary authorization.
Strengthening Regulatory Oversight
The action is part of SOCPA’s ongoing efforts to strengthen its regulatory and supervisory role over the accounting and auditing profession and its related activities, while promoting compliance with professional regulations and protecting beneficiaries from unauthorized practices.
SOCPA oversees the accounting and auditing profession, including professional standards, licensing and compliance with the rules governing professional practice.
Unlicensed Practice Can Constitute an Offense
According to SOCPA, the practices identified in the case fall under offenses prohibited by Article 10 of the Accounting and Auditing Profession Law, which criminalizes misleading the public into believing that an individual or entity has the right to practice the profession without holding a valid license, or when a license has been revoked or suspended.
Under the law, certain offenses covered by Article 10 may carry a prison sentence of up to five years and a fine of up to SAR 2 million, or either penalty.
Checking Professional Licenses
SOCPA maintains official lists of licensed firms and professional service providers, allowing beneficiaries to verify whether providers are authorized to offer services under its supervision.
The lists cover licensed providers of accounting and auditing services, zakat and tax accounting, VAT services, accounting services, and financial consulting services for non-securities activities.
The organization also provides an online service for checking license validity, as well as a channel for reporting suspected professional violations.
Call for Greater Due Diligence
SOCPA urged beneficiaries to verify the licenses of professional service providers before engaging with them and to report any practices suspected of violating applicable laws and regulations.
The latest action highlights the importance of verifying the regulatory status of accounting and professional service providers before entering into agreements, helping protect beneficiaries and strengthen trust and compliance across the sector.
