Abu Dhabi, UAE: In a move to strengthen the UAE’s financial integrity and encourage high quality audit, the Institute of Chartered Accountants in England and Wales (ICAEW) has partnered with ADGM Registration Authority (RA) to elevate audit standards across the country. Last week, they hosted a joint audit outreach session at ADGM in Abu Dhabi, providing auditors and finance professionals with the skills and tools necessary to meet the highest global benchmarks in auditing. This initiative underscores ADGM’s and the UAE’s commitment to transparency and excellence in financial reporting.

The session addressed the pressing need for improvement in audit quality, as highlighted in ADGM’s Registration Authority Audit Monitoring Report 2023. The report revealed that 67% of the inspected firms required significant improvements in their audit work, with common shortcomings including insufficient evidence to support audit conclusions - particularly in revenue recognition, and inadequate risk assessments and understanding of the companies being audited.

Additionally, the outreach covered ADGM RA’s approach to audit supervision and enforcement, including statistics on enforcement actions taken against auditors in 2023 and 2024.

To address these challenges, the workshop focused on four key areas:

  • Enhanced Risk Assessment: Implementing a comprehensive risk assessment process to identify and mitigate potential vulnerabilities in the audit process.
  • Robust Evidence Gathering: Ensuring audit evidence is sufficient, appropriate, and relevant to support audit conclusions.
  • Effective Communication: Building open and transparent communication between audit teams, management, and stakeholders to better understand the business and its risks.
  • Adhere to Ethical Standards: Upholding the highest ethical standards and professional conduct throughout the audit process.

Beyond theory and presentations, the workshop featured case studies and interactive sessions, allowing participants to apply their knowledge to real-world scenarios. Attendees explored the diverse risk landscape facing auditors, including operational, financial, and regulatory risks, highlighting the interconnectedness of effective auditing, financial stability and investor protection.

Hanadi Khalife, Head of Middle East, ICAEW, said, “As the UAE’s business environment becomes increasingly sophisticated and global, high-quality audits are essential for maintaining investor confidence and the integrity of financial markets. By empowering finance teams with the knowledge and tools to excel, we are contributing to a more resilient and sustainable financial ecosystem.”

Tim Land, Executive Director of Monitoring & Enforcement, ADGM, added, “We are witnessing a positive trend in the UAE, with audit firms becoming more selective in their engagements, driven by a lower risk appetite and a commitment to proper documentation. This dedication to high standards reflects the growing maturity of the audit profession and is crucial for ensuring the integrity of financial reporting.”

The collaboration between ICAEW and ADGM highlights the UAE’s proactive approach to elevating audit standards, ensuring that the financial sector remains robust, transparent, and aligned with international best practices.

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