CMA seeks feedback on regulatory enhancements for supervised auditors

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) invited all interested parties, stakeholders, and participants in the financial market to submit their views on a proposed amendment to the rules for registering auditors of entities under the authority’s supervision. The consultation period will last for 30 calendar days, ending on May 8, 2026.

The proposed draft aims to provide a regulatory environment aligned with best practices for entities that independently oversee auditors, in a manner consistent with relevant regulations. The objective is to enhance the quality of audit processes for entities under the authority’s supervision and improve the quality of disclosures made by accounting firms registered with CMA, according to a statement.

Under the proposed amendments, the authority has introduced mandatory requirements for accounting firms through the “Rules for Auditors of Entities Subject to CMA Supervision,” aimed at raising the qualification level of audit managers and ensuring professional competencies.

Among the key requirements is the presence of a sufficient number of audit managers holding fellowships from the Saudi Organization for Chartered and Professional Accountants (SOCPA), or equivalent professional certifications accepted by the authority, in proportion to the nature, size, and complexity of the firm’s operations.

The proposed amendments also require the existence of an appropriate quality management system for auditing and reviewing financial statements.

Additionally, registered accounting firms must comply with professional standards when reviewing interim financial statements and auditing annual financial statements of entities under the authority’s supervision, to enhance users’ confidence in financial reports.