CMA Suspends KPMG from Auditing Regulated Entities
Capital Market Authority (CMA) on 13 November 2018, Tuesday suspended audit firm KPMG from auditing entities regulated by CMA for a period of one year. This decision does not affect the engagements where the firm has already been appointed. In such cases, the firm can continue in the capacity of auditor and discharge its contractual obligations. The legal and regulatory provisions in Oman grant KPMG a legal right to appeal against this decision before independent appellate authority.
This suspension is result of CMA’s inspection of some listedentities where major financial and accounting irregularities werediscovered by CMA team. This had prompted CMA to enforce immediate corrective measures in those listed entities to protect investors and other stakeholders.
CMA undertook a comprehensive review of the causes that included understanding the reason of the non-discovery and non-reporting of such irregularities by the auditors. This reviewestablished professional negligence on the part of some audit firms that warranted disciplinary measures against them in the interests of the investors and other stakeholders. CMA is also further strengthening its regulations in line with its learning gained from recent cases to avoid their recurrence.
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