The Capital Market Authority (CMA) has banned Moore Stephens, a leading international accounting and business advisory services firm, from providing audit services to companies regulated by the Authority for a period of one year, citing its failure to meet international accounting standards.
The unprecedented action came in an announcement posted on the Authority’s website yesterday. It held Moore Stephens in breach of Articles 112 and 113 of the Commercial Companies Law, Article 5 of the Capital Market Law and 282 of the Executive Regulations of the Capital Market Law.
“The decision was taken after detailed examination of the matter and giving the firm reasonable opportunity to be heard. The CMA concluded that the firm had accepted practices by few regulated entities that were inconsistent with international accounting practices causing adverse effect on certain market participants,” the regulator said.
While barring Moore Stephens from accepting any new auditing engagements with CMA regulated entities for one year, the Authority however permitted the firm to continue providing services to companies under existing contractual engagements until the next annual general meetings (AGM) are convened.
Moore Stephens has appealed the decision under Article 61 of the Capital Market Law.
“The CMA emphasises the importance of all audit firms complying with the laws, regulations and the professional /international leading practices,” the Authority added.
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