What Are The Conditions and Procedures of Registration of External Forensic Audit Offices at The Money Markets Authority?

This question is answered by the security activities lawyers’ team at RHR for advocacy and legal advices, according to the executive regulation for Money markets authority and security activities regulation establishing law No. 7 for the year 2010.

What is meant by the external forensic audit office is an independent foundation (Single or joint license), competent of censorship on all commercial and financial transactions for the authorized person from the Money markets authority to practice an activity of the security activities or for collective investment system to verify its compliance with forensic standards and the relevant decisions of the authority, and reviewing the works of the internal forensic audit unit.

The external forensic audit office is constituted of jurisprudent auditors and being supported in their work by one or more accountant and a legal advisor, and it is required in all whom mentioned a practical experience by no less than five years.

The external forensic audit office is being appointed at the authorized person for one fiscal year subject to renewal for a time limit of maximum four fiscal consecutive years, and never been appointed after that unless after two fiscal years at least.

And according to the fifth book of the executive regulation for the law No. 7 for the year 2010 it is not permitted for the external forensic audit office if it wasn’t registered at the Money markets authority to present any of his services to any authorized person from the authority to practice an activity of the security activities or to any collective investment system like collective investment funds.

There existed in the authority a special record for its approved external forensic audit offices, and it is not permitted for any authorized person or any collective investment system to use asset in the external forensic audit fields by services of unregistered entity at the authority, so the external forensic audit offices should submit to the authority with registration request in its record as follows:

1. To present the registration request according to registration request form of external forensic audit office contained in the appendix No. (9) from this fifth book of the executive regulation of law No. 7 for the year 2010, and the authority decides the submitted request through thirty days after submitting the registration request fulfilling the required data and documents in the approved form.
2. It shall be the office licensed from the ministry of commerce and industry to practice the activity of forensic advices activity.
3. It is a requirement about the forensic audit to be qualified by an authorized bachelors degree in the field of Islamic legislation to be competent in practicing forensic audit profession, or professional qualification in the fields of the financial trading jurisprudence according to the Islamic legislation rules from a competent institutions recognized for its efficiency, and to be fully free to work in the office, and it shouldn’t be a final judgment issued against him by an offence involving dishonored or dishonesty or was convicted of a custodial sentence in a crime unless he is reclaimed.
4. It shall for the external forensic audit offices to separate the team work of the forensic auditors who take over the external forensic audit missions from the teamwork who present jurisprudence advices.

The time limit of the external forensic audit office registration at the Money markets authority is three years from the date of their acceptance and recording them in the private record for them at the authority, and it is permitted to renew the record or registration for a similar duration or durations according to a requirement submitted from the authorized person.

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