Abu Dhabi Global Market has taken action against an auditing firm, imposing a fine of $88,000 for audit failures during an inspection.
Action was taken against MCA Auditors and Advisors LLP (MCA Auditors) and its Audit Principal after deficiencies were identified in an audit MCA Auditors conducted for an ADGM-registered company.
This follows an on-site inspection, conducted by the authority, to assess MCA Auditors’ compliance with ADGM’s Auditors Rules and the quality of its audit work.
These were 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.
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The Registration Authority of ADGM also found evidence of the Audit Principal’s involvement. The authority imposed a fine of $52,000 on MCA Auditors and $36,000 on the Audit Principal.
The RA said, “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 Abu Dhabi Global Market and take appropriate action where applicable standards are not met.”
Source: Khaleej Times