Saudi Authority Refers Unlicensed Audit Firms to Prosecution

The Saudi Organization for Chartered and Professional Accountants (Saudi Accounting and Auditing Authority) has recently referred at least one commercial establishment and several individuals and firms to the Public Prosecution for advertising or providing accounting and auditing services without holding a valid professional license in the Kingdom.

some parties advertised professional accounting or auditing services on websites, social media, or physical signage without a proper license. Others claimed or implied the right to practice as a certified public accountant when their license had been revoked, suspended, or never issued. Cases also included preparing an office, installing a professional signboard, or marketing "audit" and "financial statement certification" services without meeting licensing requirements.

These practices fall under offenses prohibited by Article 10 of the Accounting and Auditing Profession Law, which criminalizes misleading the public by any means into believing that a person or establishment has the right to practice the profession when it is not duly licensed, or when the license has been revoked or suspended.

Penalties

Statutory criminal penalties for such offenses include imprisonment for a term not exceeding five years, a fine not exceeding SAR 2,000,000, or both, as decided by the court. For licensed accountants, administrative penalties range from a warning or reprimand to fines between SAR 10,000 and SAR 500,000, suspension from practice for up to one year, or cancellation of membership. Repeat violations within three years may result in doubled fines and revocation of the license.

Recent enforcement actions during 2025–2026 have included referring a former certified public accountant whose license was cancelled yet who continued presenting himself as practicing, along with commercial establishments that promoted services without a license. Detection has relied on field inspections following formal complaints, as well as monitoring of social media and websites.

For residents and business owners, the message is clear: always verify that any accounting or auditing firm holds a valid professional license before engaging its services.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving