FSA suspends United Mawa Projects for 6 months

The Financial Services Authority (FSA), represented by its Professional Conduct Committee, has issued a decision to suspend United Mawa Projects firm from practising accounting and auditing for six months, following inspection and review findings that revealed violations of the Law Regulating the Accounting and Auditing Profession. 
These included offering the professional licence for rent through an electronic platform, the absence of the firm owner’s signature on the majority of audit reports, and failure to comply with professional standards.

The decision explained that offering the licence for rent could enable entities not licensed to practise the profession in the Sultanate of Oman to benefit from the licence issued to the firm owner and exploit his legal professional status. This could allow such entities to carry out professional activities under the licence granted to him without meeting the prescribed legal requirements and procedures. Such practices violate the provisions of the law, undermine the legal framework governing the accounting and auditing profession, and weaken the regulatory safeguards established to protect the public interest and maintain confidence in the profession.

The inspection also found that the firm owner’s signature was absent from the majority of audit reports issued by the firm, in addition to non-compliance with multiple auditing requirements. These included the lack of sufficient and appropriate audit evidence to support the professional opinion, as well as observations relating to planning, materiality and the accumulation of misstatements identified during the audit process. The findings also included failure to perform the necessary procedures to verify the physical existence and condition of inventory.

The FSA emphasised that a licence to practise the accounting and auditing profession is granted on the basis of legal and professional considerations relating to the licensee, including their competence, responsibility and compliance with the law. By its legal nature, the licence may therefore not be transferred or made available for use or exploitation by third parties in any manner beyond the limits prescribed by law. 
The FSA stressed that all entities under its supervision must comply with applicable laws, regulations and approved standards, contributing to greater confidence in the Sultanate of Oman’s non-banking financial sector.