The Registration Authority of Abu Dhabi Global Market (ADGM) has fined MCA Auditors and Advisors LLP and its audit principal a combined $88,000 (AED323,180) over failings in an audit of an ADGM-registered company, state news agency WAM reported on Friday.
The authority fined the firm $52,000 and the audit principal $36,000.
The action followed an on-site inspection by the authority to assess the firm’s compliance with ADGM’s auditors rules and the quality of its audit work.
The authority found deficiencies across several areas of the audit, including risk assessment procedures, consideration of fraud risk, group audit requirements, communication with those charged with governance, and insufficient evidence over material areas.
It also found limited evidence that the audit principal was involved throughout the engagement, Gulf News reported.
In setting the penalties, the authority took into account the firm’s cooperation, its acknowledgment of the inspection findings, its analysis of the root causes and its plan to remedy the deficiencies, among other factors.
“Registered Auditors and Audit Principals remain responsible for the quality of the audits for which they are appointed,” the authority said, adding that it would continue to monitor audit quality in ADGM and act where applicable standards are not met.
ADGM is Abu Dhabi’s international financial center, located on Al Maryah Island.
