ABU DHABI, 23rd October, 2026 (WAM) — The Registration Authority (RA) of ADGM has taken enforcement action against MCA Auditors and Advisors LLP (MCA Auditors) and its Audit Principal by imposing financial penalties totalling USD 88,000 for audit failures identified during an audit inspection by the RA.
The action followed an on-site inspection conducted by the RA to assess MCA Auditors’ compliance with ADGM’s Auditors Rules and the quality of its audit work. During the inspection, the RA identified deficiencies in an audit conducted for an ADGM-registered company by MCA Auditors.
Accordingly, the RA imposed financial penalties as follows:
· USD 52,000 on MCA Auditors; and
· USD 36,000 on the Audit Principal.
The RA’s findings included identified deficiencies in multiple areas of the audit, including risk assessment procedures, fraud risk considerations, group audit requirements, communications with those charged with governance, and insufficient evidence over material areas. The RA found limited evidence of the Audit Principal’s involvement throughout the engagement.
In determining the financial penalties, the RA took account of the cooperation provided, acknowledgement of the inspection findings, MCA’s root-cause analysis and remediation plan, amongst other factors.
The RA of ADGM stated: “Registered Auditors and Audit Principals perform an important role in supporting confidence in the accuracy and reliability of financial reporting in ADGM. The failings identified in this matter extended across multiple fundamental areas of the audit process.
Registered Auditors and Audit Principals remain responsible for the quality of the audits for which they are appointed. The RA will continue to monitor the quality of audit work undertaken in ADGM and take appropriate action where applicable standards are not met.”
Source: Emirates News Agency