Dr. Mohamed Salem Abou El Farag
Associate Professor of Commercial and Maritime Law
College of Law, University of Qatar
Doha, State of Qatar

Abstract:

The main task of an auditor is to ascertain whether the financial statements of the entity whose accounts, business results, and cash flows are correct, and that they were carried out in accordance with the approved accounting standards. These standards require him to state that these statements as a whole are free from material misstatement, whether due to fraud or error. After that, it is his turn to issue his annual report, which includes his opinion on the company’s financial position.
There is no argument about the importance of the auditor’s role, as the general assembly of the company does not meet – as a general rule – except once a year, and therefore it is in dire need of someone to follow up the financial performance of the company. In addition, the control of the general assembly may be -in practice- ineffective due to the large number of shareholders in some companies, such as public shareholdings, and to the lack of the majority of these shareholders of the experience and technical competence required by auditing and accounting. In order to ensure its complete independence, most comparative legislation provides for the competence of the general assembly – not the board of directors – to appoint an auditor, and therefore he is considered the visionary eye of the assembly with regard to the company’s accounts. Therefore, he issues his report for presentation to this assembly, and thus he is questioned before it.
Due to the fact that there is no detailed or comprehensive study about the legal regime of auditors in the State of Qatar, the current research paper shall explain the provisions contained in Law No. 8 of 2020 regulating the auditing profession. In view of the important role played by the auditor in joint stock companies, the study shall analyse the provisions related to him in accordance with the provisions of the Commercial Companies Law No. 11 of 2015. Given the importance of the provisions related to the liability of auditors, whether disciplinary, civil or penal, it shall examine the relevant provisions, whether this liability is stated in Law No. 8 of 2020 or Law No. 11 of 2015. The study shall include a number of recommendations that will enhance the important role played by the auditor.
Keywords: legal regime, auditors, rights and duties, liabilities, and penalties.

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