The Capital Markets Authority (CMA) of the Sultanate of Oman has suspended KPMG from auditing listed entities it regulates after finding “major financial and accounting irregularities”.
The CMA launched an inspection of some listed entities and when it discovered the irregularities, it decided to take action to protect investors and stakeholders.
A review examining why the auditors had not discovered or reported these irregularities “established professional negligence on the part of some audit firms that warranted disciplinary measures against them in the interests of the investors and other stakeholders”, the CMA said.
KMPG will continue the audits and other engagements for existing clients, and is able to appeal the decision before an independent appellate authority.
A KPMG Lower Gulf spokesperson said the firm “notes the announcement made by the CMA and will work closely with [it] to better understand and resolve this matter”.
“For reasons of our client confidentiality obligations, we are unable to comment further at this time,” they added.
Despite the recent measures taken, the CMA noted that most of the accredited audit firms inspected adhered to international auditing standards and that financial reporting was “in compliance with the requirements of international financial reporting standards (IFRS) that are mandatory in the Sultanate”.
It said that it expects the firms against which measures have been taken to conduct internal reviews, and advised them to “implement robust internal quality control procedures to avoid such occurrences in future”.