Oman FSA Reinforces Professional Compliance for Audit Firms
The Financial Services Authority (FSA) has published a professional compliance update for Oman's accounting and auditing profession. In an announcement dated 23 July 2026, the FSA outlined the importance of following the requirements of the Law Regulating the Accounting and Auditing Profession.
The announcement is relevant to audit practices, finance teams, boards, and businesses that rely on audited financial statements. It highlights the importance of clear engagement responsibility, complete audit documentation, and consistent application of International Standards on Auditing (ISAs).
What did the FSA reinforce?
The FSA highlighted requirements connected with Articles 19, 22, and 23 of the Law Regulating the Accounting and Auditing Profession. The areas highlighted include:
- The owner of an audit firm must personally sign the audit reports issued by the firm.
- Working papers and audit files must be retained for ten years.
- Audit practices must comply with applicable professional requirements, including the International Standards on Auditing.
Three-month review period
The announcement provides a three-month period for the relevant firms to complete the required corrective steps and follow supervisory directions.
This demonstrates that professional compliance is not limited to obtaining or renewing a licence. Firms must also maintain effective quality controls and be able to demonstrate that audit work was properly planned, performed, reviewed, documented, and reported.
What should audit and accounting practices review?
| Review area | Practical question |
|---|---|
| Report signing | Is each audit report signed by the responsible person in accordance with the applicable legal requirements? |
| Audit files | Are working papers complete, organized, protected, and retained for the required ten-year period? |
| ISA compliance | Do engagement teams follow the relevant ISAs and document the basis for significant audit judgments? |
| Quality control | Are engagement reviews, independence checks, consultation, and final file reviews performed consistently? |
| Client records | Can the firm clearly support the audit opinion with sufficient appropriate audit evidence? |
Why this matters for businesses
Businesses should consider the quality and regulatory standing of their appointed audit firm as part of their broader governance and financial reporting process. A strong audit file supports reliable financial statements, tax reporting, financing discussions, shareholder confidence, and responses to regulatory or stakeholder questions.
Management teams can also reduce delays by preparing schedules, reconciliations, contracts, supporting invoices, related-party information, and other requested evidence in an organized form before the audit begins.
Practical readiness checklist
- Confirm that the audit engagement letter identifies the responsible partner and scope of work clearly.
- Maintain a documented audit-file retention and secure-access process.
- Review the firm's quality-management procedures against current professional standards.
- Document significant judgments, materiality decisions, related-party procedures, and audit evidence.
- Ensure audit reports are reviewed and signed through the correct authorization process.
- Keep client accounting records and supporting documents ready for audit and regulatory review.
How Al Osool can help
Al Osool supports businesses in Oman with audit readiness, accounting records, financial reporting, internal control reviews, tax compliance, and practical finance-process improvements. Strong documentation and well-organized records help management respond efficiently to audit requirements and maintain confidence in reported financial information.
For support with audit readiness and financial reporting in Oman, visit our Audit & Assurance page or contact Al Osool.
Official reference
This article summarizes a public regulatory announcement and is intended for general information. Businesses and professional firms should review the applicable law, standards, and official FSA instructions for their specific circumstances.