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Scenario 2 In September 2019 The Capital Market Authority (CMA) of Oman has suspended suspending number of auditing firms to audit the accounts of the

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Scenario 2 In September 2019 "The Capital Market Authority (CMA) of Oman has suspended suspending number of auditing firms to audit the accounts of the companies regulated by CMA for a period of three months. The firms were found to have violated the Second Paragraph of the First Article of Decision No 8/2018 on the Rules for Accreditation of Auditors, which stipulates that "Auditors accredited by CMA must renew their accreditation during a period not exceeding six (6) months from the date this regulation having effect". The suspended firms are. Ibn Hayyan Chartered Accountants, HC Shah Chartered Accountants, Maganlal Thacker & Co. Baker Tilly MKM Oman, Talal Abu Ghazaleh & Co. Mazaz Chartered Accountants & Co, Regional Audit Firm Chartered Accountants and Maqbool Hussain Mosa Accounts Auditors. The Statement reads as follows: "The CMA had issued the rules regulating the business of audit firm to ensure they strict comply with IAS and IFRC requirements. The Authority continuously assesses the performance of audit firm by its audit teams for their important role in auditing the financial reports and quarterly statements announced through MSM to ensure their accuracy and impartiality and that they truly represent the positions of the companies, and to detect any manipulation or fraud practices to protect the investors and to provide adequate information for sound investment decisions, the regulator said in a press statement."- Oman Observer 2019 [https://www.omanobserver om/cma- suspends-eight-audit-companies] Activity: Investigate into the above reports and identify what types of ethical violation happened Tasks: answer the following questions. 1. What is code of conduct for auditors are violated in the above case. 2. Why it is important for auditors to comply with law regulating auditing and accounting? 3. What will be the consequences, if auditors do not follow the ethical code of conducts

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