Law No. 8 of 2020 on the Regulation of the Auditing Profession

Law No. 8 of 2020
On the Regulation of the Auditing Profession

We, Tamim bin Hamad Al Thani, Emir of the State of Qatar, Having reviewed the Constitution, Law No. 30 of 2004 on Regulating the Accountancy Profession, Law No. 11 of 2015 on Companies, The proposal of the Minister of Commerce and Industry, The draft law submitted by the Council of Ministers, And after consulting the Shura Council, Have enacted the following Law:

Chapter One
Definitions
Article (1)
In applying the provisions of this Law and its Executive Regulations, the following terms and words shall have the meanings indicated alongside each of them, unless the context dictates otherwise:

• The Ministry: The Ministry of Commerce and Industry.
• The Minister: The Minister of Commerce and Industry.
• The Competent Administration: The administrative unit competent within the Ministry.
• The Profession: The auditing and accountancy profession practiced by an auditor, in accordance with the provisions of this Law.
• Auditor: A natural or legal person registered in the auditors' registers, in accordance with this Law.
• The Committee: The Auditors Affairs Committee referred to in Article (14) of this Law.

Chapter Two
Auditors' Registers and Registration Conditions Article (2) The following registers shall be established in the Ministry:

1. Registers for practicing auditors, including:
   a. Register of natural person auditors. b. Register of accounting offices and companies.
   c. Register of trainee auditors.
2. Register for non-practicing auditors.

The Committee, upon the Minister's approval, may establish other registers as required by professional practice standards. Registration in these registers shall follow the conditions specified by the Committee and approved by the Minister. The Committee prepares the register forms stipulated in this Article, which are approved by the Minister.

Article (3)
No natural or legal person may practice the profession unless registered in the practicing auditors' registers, in accordance with this Law.

Article (4)
The following conditions apply to natural persons registered in the register of natural person auditors:

1. Qatari nationality.
2. Full legal capacity.
3. A university degree in accountancy from a recognized university or higher institute, or another qualification deemed equivalent by the competent authority.
4. Good conduct and reputation, with no final conviction for a felony or crime involving moral turpitude or honesty, unless reinstated.
5. No final disciplinary ruling of expulsion from the register, unless at least three years have passed since the ruling or decision.
6. Completion of the training period stipulated in Article (10), or continuous practical experience after obtaining the academic qualification for at least three years for bachelor's degree holders, two years for master's degree holders, and one year for doctoral degree holders (or equivalent), or obtaining a fellowship from an accounting institute or association specified by the Committee.
7. Passing the professional qualification examination, as determined by the Committee.
8. Full-time practice. The Committee may allow a Qatari auditor registered in the register to combine practice with other non-conflicting work for five years from registration, extendable as needed.

Article (5)
Acceptable accounting experience includes practicing in any of the following fields:

1. Auditing accounts in an accounting office or company.
2. Practicing accountancy, auditing, or financial inspection in a ministry, other government entity, public authority/enterprise, or private sector.
3. Teaching accountancy, auditing, or related training in colleges, institutes, or approved educational/training institutions, according to Committee conditions.

Article (6)
Exception to Article (4)/Clause 1, a non-Qatari natural person may be registered in the register of natural person auditors if meeting conditions (2), (3), (4), (5), and (7) of that Article, plus:

1. Legitimate and stable residence in the State throughout the registration period.
2. Partnering with or working for a Qatari auditor registered in the natural person register or accounting offices/companies register.
3. Holding a fellowship from a specified institute/association, or membership for at least five years, or completing the training period in Article (10).
4. Full-time practice.

Article (7)
Qatari auditors may establish general partnerships to practice jointly with Qatari or non-Qatari auditors, according to the designated form. The company is registered in the accounting offices/companies register. The managing director responsible for signing audit and review reports must be registered in the natural person auditors' register. If a partner is a foreign legal entity, it must hold a license to practice in its country of registration. A partner may not practice except as a partner in the company, in its name and for its account. A partner must not be a member of more than one company.

Article (8)
If a partner in such companies dies, heirs must regularize their status within one year of death. Their rights are liquidated in agreement with other partners.

Article (9)
Accounting offices and companies may not employ non-registered persons to perform their work.
In all cases, they cannot employ persons whose names have been struck off or suspended from practice under this Law.

Article (10)
Subject to Articles (4/Clauses 2,3,4,5) and (5), each person practicing auditing/review for the first time is registered in the trainee auditors' register. Training periods are:

1. One year for doctoral degree holders.
2. Two years for master's degree holders.
3. Three years for bachelor's degree holders.
   The Executive Regulations specify training methods and conditions.
   The Ministry pays a monthly allowance to each Qatari trainee auditor, according to Council of Ministers regulations.

Article (11)
Branches of non-Qatari accounting companies/offices may practice in the State under these conditions:

1. Valid license in their home country, practicing there for at least ten years.
2. Submission of a guarantee from their head office, certified by the relevant Qatari embassy, committing to all liabilities arising from branch practice, with official documents proving establishment, statutes (if any), financial viability, and accounting work.
3. The branch manager or authorized signatory must be registered in the natural person auditors' register, with at least ten years of practical experience (exempt for Qatari managers).
4. Training a number of Qatari auditors, as specified by the Competent Administration.
   The Executive Regulations specify registration/renewal procedures for non-Qatari branches.
   The Committee may, upon the Competent Administration's proposal, cancel a non-Qatari company/office registration for violating practice conditions, notifying the licensing authority to cancel the branch license.

Article (12)
A Qatari auditor who stops practicing for over a year may be transferred, upon request, to the non-practicing auditors' register.
A registered non-practicing auditor may request re-registration in their previous register if they wish to resume practice or the obstacle is removed.

Chapter Three
Registration Procedures
Article (13)
Registration applications are submitted to the Competent Administration using designated forms, accompanied by supporting documents.

Article (14)
A committee named "Auditors Affairs Committee" is established in the Ministry, formed and with membership duration determined by a Council of Ministers decision upon the Minister's proposal. The Committee exercises the authorities stipulated in this Law.

Article (15)
Registration applications are presented to the Committee in order of receipt within two weeks. The Committee decides on registration and notifies the applicant within thirty days. If additional data/documents are requested, the period starts from full receipt. Rejections must be reasoned. An applicant may appeal a rejection to the Minister within thirty days. The Minister decides within thirty days; failure to respond constitutes an implicit rejection. The Minister's decision is final.

Article (16)
The Competent Administration records accepted applications in the designated register. A registration certificate issued by the Administration serves as a license to practice, according to the designated form. Registration is valid for three years, renewable for similar periods.

Article (17)
Before practicing, a natural person auditor whose registration is accepted must sign a written undertaking in the following form:
"I undertake to perform my work with honor and honesty, respect State laws, preserve professional confidentiality, adhere to traditions and ethics, comply with approved accounting/auditing standards, and not disclose clients' secrets or entrusted information except as required by State legislation." A record of the undertaking is filed with the Competent Administration.

Article (18)
Registration in practicing auditors' registers is renewed upon application submitted three months before expiry, with proof of completing required accounting/auditing courses specified by the Committee. Renewal does not apply to non-practicing auditors. Renewal may occur within three months after expiry if a valid excuse is accepted, with fees paid from the expiry date. Renewal applications are presented to the Committee within two weeks. The Committee decides within thirty days; if additional data/documents are requested, the period starts from full receipt. The Committee notifies the applicant of acceptance or rejection within thirty days, with reasons for rejection if applicable. Rejected renewal applications may be appealed to the Minister under Article (15).

Article (19)
The Minister determines registration and renewal fees, and other services provided by the Ministry under this Law.

Chapter Four
Rights and Obligations of Auditors
Article (20)
Subject to Article (6), auditors registered in practicing registers may be licensed to open their own offices. Licenses are issued after consulting relevant authorities. The Competent Administration registers the licensed office in the accounting offices/companies register upon request.

Article (21)
An auditor has the right to perform:

1. Review and audit of financial statements, expressing opinions per approved standards.
2. Preparing reports on financial statements, balance sheets, and periodic/annual accounts for clients.
3. Providing expertise, advice, and studies in financial, economic, and tax fields.
4. Liquidation works.
5. Any other tasks assigned by applicable State laws.

Article (22)
In practicing, an auditor has the right to:

1. Access books, registers, documents, and request necessary data/explanations.
2. Obtain all evidence supporting their opinion per professional standards; no person may prevent or withhold necessary documents/data/information.
3. Conduct inventory at appropriate times in the audited entity's vaults/warehouses, verify assets/liabilities, visit factories/workshops/offices/sites/projects, and consult specialists.

Article (23)
No company or institution may dismiss an auditor during the financial year they are performing duties, unless a violation is proven and approved by the Competent Administration.

Article (24)
Auditors must adhere to professional conduct, ethics, traditions, and approved accounting/auditing standards. They must also comply with governance rules, institutional discipline standards, and other duties stipulated by laws/regulations.

Article (25)
Without prejudice to other conditions, auditors may not approve financial statements of public entities, joint-stock companies, investment funds, banks, insurance companies, or other financial institutions unless they have practiced in an accounting office/company for at least five consecutive years.

Article (26)
Auditors are prohibited from:

1. Engaging in trade/commerce.
2. Practicing or advertising in a manner conflicting with laws/regulations or professional ethics.
3. Performing works conflicting with their auditing/review duties.
4. Holding any direct or indirect interest in a client being audited or related parties.
5. Buying/selling the client's securities directly/indirectly, or providing related consultations.
6. Being a creditor or debtor to the audited client (except for service fees).
7. Being a partner or accountant in another accounting company/office.

Article (27)
Auditors may not audit a client in the following cases:

1. Participating in its establishment, management, or having worked there in any capacity (unless at least two years have passed since leaving).
2. Being a partner, agent to founders/partners, employee of any, or first-degree relative.
3. Providing consulting services to the audited entity.

Article (28)
Auditors must append their name and registration number to all correspondence, certificates, statements, and reports they sign. The registration certificate must be prominently displayed in their office.

Article (29)
Auditors must use their personal name as a fundamental element in their office title. If a company, the title must include one or more partners' names with an indication of being a company.

Article (30)
Auditors must annually notify the Competent Administration of:

1. Names and qualifications of persons they employ for auditing/review duties.
2. A list of clients whose accounts they audit/review.
   They must also notify any address change within thirty days; failure to do so means notifications to the registered address are deemed valid.

Article (31)
Auditors must personally sign audit/review reports if natural persons. If legal entities, a registered partner or director must sign; delegation is not permitted in any case.

Article (32)
If an auditor stops practicing temporarily or permanently, they must notify the Competent Administration within thirty days of cessation.

Article (33)
The Committee may, upon the Competent Administration's proposal, strike off an auditor from their register in:

1. Loss of any registration condition.
2. Failure to submit a renewal application within the prescribed period (without prejudice to Article 18, paragraph 2).
3. Failure to complete required training programs/courses for renewal.
4. Failure to notify cessation of practice within the period in Article (32).
   Struck-off auditors are notified with reasons. They may appeal to the Minister within thirty days; the Minister decides within thirty days (implicit rejection if time expires). The Minister's decision is final.

Article (34)
If an auditor stops practicing permanently or for a period harming clients/third parties, all related transactions and liabilities are liquidated according to Executive Regulations.

Article (35)
Auditors are responsible for audit/review work and the accuracy of data in their reports. They are liable to compensate clients/third parties for damages due to negligence, breach, or professional errors by themselves or supervised assistants. If multiple auditors are involved, they are jointly liable unless damage is attributed to one's negligence/error. If a company performs audit/review, all partners bear joint liability for professional errors/damages to third parties.

Article (36)
Auditors are liable for negligence/professional errors harming third parties who relied in good faith on signed financial statements when making financial decisions.

Article (37)
Auditors must retain client records, files, and data for at least five years (or longer if stipulated by laws/regulations), from the end of the last financial year audited. Retirement does not exempt them from this retention period.

Article (38)
Auditors must provide official entities with requested information/data about companies/entities they audit, according to applicable laws or authorized judicial authority.

Chapter Five
Disciplinary Liability of Auditors
Article (39)
The Competent Administration may, on its own or upon complaint, investigate matters attributed to auditors involving breaches of honor, professional ethics/dignity, negligence in duties, or violations of this Law/Executive Regulations/decisions. If a criminal offense is identified, it refers the matter to the Public Prosecution; if an administrative violation, to the Disciplinary Council. The Administration Director or Minister's appointee conducts investigations and prosecutes administrative cases.

Article (40)
Auditors are disciplined before a Disciplinary Council formed by the Minister, presided over by an Intermediate Court judge selected by the Supreme Judiciary Council, and comprising a Ministry employee and an Audit Bureau employee selected by their respective heads.

Article (41)
Auditors violating professional duties, ethics, standards, or laws/regulations/decisions are subject to disciplinary sanctions:

1. Reprimand.
2. Warning.
3. Suspension from practice for up to three years.
4. Striking off the register.

Article (42)
The Disciplinary Council decides on violations after notifying the auditor at least seven days before the session via any means confirming receipt, including a summary of charges, date, and venue. Sessions are private. The auditor may present oral/written defenses personally or through a colleague/lawyer. The Council may require the auditor's personal attendance; absence after notification allows decisions in absentia. Decisions must be public and reasoned. The auditor is notified of the Council's decision via any means confirming receipt.

Article (43)
An auditor against whom a disciplinary decision is issued may appeal to the competent Appellate Court Division within thirty days of notification.

Article (44)
Retirement or suspension from practice does not prevent disciplinary prosecution for violations committed during practice. The administrative action expires after three years from retirement or cessation of work.

Article (45)
Disciplinary decisions are recorded in a special register and endorsed in the auditor's main register.

Article (46)
An auditor whose name was finally struck off may request re-registration after at least three years. The Committee must decide within thirty days. If rejected, a new request may only be submitted after one year; Committee decisions are final. Procedures follow this Law.

Chapter Six
Penalties
Article (47)
Without prejudice to heavier penalties in other laws, imprisonment up to one year and/or a fine not exceeding QAR 2,000,000 applies to any person who:

1. Records false data in reports/accounts/documents while practicing, knowing it to be true.
2. Issues a report contrary to fact or certifies untrue facts in legally/professionally required documents.
3. Certifies fictitious or untrue profit distributions.
4. Discloses secrets of audited clients.
5. Issues financial reports not audited by them or their supervised staff.
   The court orders striking off the violating auditor's name and may order publication of the conviction in one or two daily newspapers at the violator's expense.

Article (48)
Without prejudice to heavier penalties, imprisonment up to one year and/or a fine not exceeding QAR 1,000,000 applies to any person who:

1. Practices without being registered in the designated register, or practices after striking off.
2. Obtains registration by providing false data/information or non-compliant certificates, knowing it to be true.
3. Uses bulletins, signs, or advertising means misleading the public about their right to practice.
   The court orders office closure, sign removal, bulletin destruction, striking off the name, and may order publication of conviction at the violator's expense.

Article (49)
Without prejudice to heavier penalties, imprisonment up to one year and/or a fine not exceeding QAR 1,000,000 applies to any person who:

1. Practices during suspension period.
2. Violates accounting, auditing, or other professional standards.
   The court may order office closure, striking off the name, and publication of conviction at the violator's expense.

Article (50)
Without prejudice to heavier penalties, a fine not exceeding QAR 50,000 applies to any person violating Articles (26), (27), (28), (29), (37), or (38).

Article (51)
The responsible manager of a violating legal entity is subject to the same penalties if knowledge or breach of duties contributed to the offense. The legal entity bears joint liability for awarded compensation if the offense was committed by an employee, in their name, or for their benefit.

Article (52)
The Minister or delegate may settle criminal offenses under this Law before prosecution, during proceedings, or before final judgment, in exchange for paying half the maximum fine and removing violation causes. Settlement prevents prosecution or extinguishes it, as applicable.

Chapter Seven
General Provisions
Article (53)
Ministry employees authorized by the Public Prosecutor's Office, in agreement with the Minister, as judicial police officers, shall record and prove offenses violating this Law.

Article (54)
The Committee issues a code of conduct and ethics for professional practice and specifies approved accounting standards.

Article (55)
The Minister issues the Executive Regulations and necessary decisions for implementation. Until these take effect, existing decisions/systems remain in force to the extent they do not conflict with this Law.

Article (56)
All persons subject to this Law must regularize their status within six months of its enactment, extendable by the Minister. Exceptions apply to the regularization stipulated in this Law.