Muscat – The Capital Market Authority (CMA) has issued a warning to Crowe Mak Ghazali, Chartered Accountants LLC (Crowe Oman), one of the leading audit and advisory firms in the sultanate, for violating the regulatory provisions while auditing a listed company.
‘The executive president of the CMA has issued a warning to Crowe Mak Ghazali 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 are inconsistent with the International Accounting Standards,’ CMA said in a statement issued on Sunday.
It added that this violation by Crowe Mak Ghazali impacted the authenticity of the [listed company’s] financial statements disclosed to the investors.
According to the CMA, the audit firm also violated the International Standards on Auditing while auditing another listed company which led to material errors in their financial statements disclosed to the investors.
The CMA has issued a set of rules that regulates the business of audit firms to ensure their strict compliance to the International Standards on Auditing (ISA) and International Financial Reporting Standards (IFRS). Additionally, the CMA also reviews the audit firms’ performance through its audit and inspection teams to ensure that the accredited audit firms conduct the audit of regulated companies in accordance to the internationally recognised standards with high credibility.
The CMA has called upon 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.
Crowe Oman is one of the leading and largest accounting and advisory firms in Oman. It is a member firm of Crowe Global.