Muscat—The Financial Services Authority (FSA) of Oman has suspended the audit firm Abu Timam Grant Thornton Chartered Accountants from offering external audit services for one year. This suspension, which took effect on Sunday, August 25, 2024, mandates that all regulated entities under the FSA’s oversight terminate their contracts with Abu Timam and engage a new external auditor from the FSA-accredited list.
The FSA’s decision stems from multiple violations of legal and regulatory standards by the firm while auditing companies listed on the Muscat Stock Exchange and other regulated entities. The FSA revealed that Abu Timam endorsed accounting practices that deviated from International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA), undermining the integrity of financial disclosures to investors.
Among the firm’s failures, the FSA highlighted inadequate auditing procedures, the premature issuance of audit reports, and improper verification of financial balances. Additionally, the firm neglected to resolve inconsistencies between financial and non-financial reports and breached legal requirements by offering non-audit services to its audit clients.
The FSA reiterated its commitment to enforcing strict compliance with ISA and IFRS standards, noting that it continuously monitors the performance of auditing firms to protect investors and stakeholders. The authority also stressed the necessity for audit firms to uphold high levels of professionalism, conduct regular internal quality reviews, and adhere to ISQM-1, ISQM-2, and ISA-220 standards to avoid legal consequences.
