Muscat: The Financial Services Authority (FSA), represented by the Professional Conduct Committee, has issued an administrative decision to deregister Reliance Audit firm from the register of firms licensed to practise the accounting and auditing profession. The decision follows the firm's violation of several provisions of the Law Regulating the Accounting and Auditing Profession, promulgated by Royal Decree No. 77/86.
The FSA stated that the decision to deregister Reliance Audit firm was based on findings from inspection and investigation processes, which revealed the nature and impact of the violations. These included allowing unlicensed individuals to practise the profession, in breach of Article (1) of the Law Regulating the Accounting and Auditing Profession, which prohibits the practice of accounting and auditing without obtaining a licence from the FSA. The firm was also found to have violated Article (19) of the Law due to the absence of the firm's owner's signature on audit reports issued by the office.
In addition, inspections found that the firm failed to meet one of the key requirements for registration in the register of auditors, namely the required practical experience in external auditing, in violation of Article (5) of the Law. The firm also breached Article (29) by failing to submit its licence renewal application within the prescribed legal period.
The decision forms part of the FSA's supervisory role in strengthening compliance with the legislation governing the accounting and auditing profession and promoting adherence to recognised professional standards and best practices.
The FSA stressed the importance of all licensed practitioners complying with the applicable laws, regulations, and professional standards.
The Professional Conduct Committee is responsible for examining and adjudicating violations attributed to licensed accounting and auditing practitioners and issuing decisions in accordance with the provisions of the Law.
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