The Financial Services Authority (FSA) issued a decision no (8/2024) suspending Abu Timam Grant Thornton Chartered Accountants for a period of one (1) year from providing external audit services to the entities regulated and supervised  by FSA. The decision also directed all entities regulated by FSA  to take all necessary actions to terminate their contracts with the  firm and appoint a new external auditor  from among the firms accredited by FSA as of the date of the decision on Sunday, August 25, 2024.

This decision was taken against the firm, due to the firm's violations of the applicable laws and regulations while providing auditing services to several companies listed on Muscat Stock Exchange and other regulated entities. The firm has accepted accounting practices that did not comply with International Financial Reporting Standards (IFRSs) and International Standards on Auditing (ISAs), which in turn affected the integrity of financial statements disclosed to investors. These practices include inadequate auditing procedures of the work of component auditors and lack of communication with them, issuing audit reports before completing detailed examination procedures of significant balances and transactions, conducting inappropriate tests to verify balances recognized in financial reports, and failing to address discrepancies between financial reports and non-financial reports included in the annual report. Additionally, the firm provided non-audit services to the audit clients in violation of legal requirements.

It is worth noting that (FSA) had previously issued a set of regulations governing the operations of auditing firms to ensure their compliance with International Standards on Auditing (ISAs) and the requirements of International Financial Reporting Standards (IFRSs). FSA emphasizes continuous evaluation of the audit firms’ performance through its regulatory examination teams, as it recognizes the importance of the role played by these firms, and believes that Audit firms are the main pillar for protecting investors and other stakeholders in providing accurate and reliable information to make the right decisions.

FSA urges all audit firms to follow high professionalism and integrity when reviewing and auditing the financial accounts of the companies. The Authority urges these firms to conduct continuous internal quality reviews in accordance with ISQM-1, ISQM-2, and ISA-220 standards to ensure compliance with regulatory and professional requirements and to avoid any legal repercussion.