Deregistration of an audit firm and three other told to adjust their situation
The Capital Market Authority took harsh measures against a number of audit firms licensed by CMA to audit the entities regulated by CMA
UTC International was deregistered as an accredited audit firm by CMA and three others were told to adjust their situation in not more than two months.
The move comes as part of the measures taken by CMA to enhance the efficiency of audit firms accredited by CMA to audit the financial statements of the issuers in accordance with best international accounting standards to ensure the compliance of the entities regulated by CMA with the laws and regulations.
CMA’s audit and inspection revealed that UTC failed to meet a number of the requirements for accreditations of audit firms to audit the account of the entities regulated by CMA provided for in the Auditors’ Accreditation Directives.
CMA emphasized that auditors must abide by the professional terms and conditions to create highly efficient and professional audit environment.
CMA considers the auditors as the first line of defence to protect the participants of the stock market to review the soundness of the financial statements of the companies on which the investors rely in taking their investment decisions.