CMA warns audit firm

Muscat: The Executive President of the Capital Market Authority (CMA) has issued a warning to the audit firm Crowe Mak Ghazali, Chartered Accountants (LLC) for violating the provisions of the Regulations for Public Joint Stock Companies while auditing a company listed on the Muscat Stock Exchange and for accepting accounting practices made by the company which is inconsistent with the International Accounting Standards and impacted the authenticity of the financial statements disclosed to the investors as well as violating the International Standards on Auditing when auditing another company listed on the stock exchange which led to material errors in their financial statements disclosed to the investors.

CMA has issued a set of rules regulating the business of audit firms to ensure robust adherence to the International Standards on Audit (ISA)and International Financial Reporting Standards (IFRS) beside continuous reviews of their performance through audit and inspection teams to ensure the accredited audit firms conduct the audit of the companies regulated by the CMA in accordance with the internationally recognized standards with high credibility including the companies listed on the stock exchange due to the role the audit firms play in auditing the financial statements disclosed via the stock exchange to be true and impartial and represents the real performance of the company for being the first line of defense in detecting the irregularities and fraud on the part of the companies to protect investment and provide adequate information for a sound investment decision.

CMA calls on all audit firms to comply with the regulatory directives and deal with high integrity when auditing the accounts of the regulated companies and carry out continuous internal reviews to ensure compliance with the regulatory and professional aspects to avoid legal action.