The DFSA, in line with its risk-based approach, performs periodic risk assessments of Registered Auditors based on a risk cycle. These risk cycles are determined based on the level of activities a Registered Auditor undertakes in the DIFC and their individual significance to the DFSA’s risk tolerance. The following are the standard risk cycles for Registered Auditors:
|Type of Registered Auditor
||Risk assessment cycle
|Auditor of Public Listed Company
||Once every year
|Big4 Registered Auditors
||Once every two years
||Once every four years
Audit Monitoring Reports
Annually, the DFSA issues a public report detailing our findings from audit inspections carried out in previous calendar year. These reports also present other relevant quantitative and qualitative data which could be used by the Registered Auditors for internal training purposes.
• Audit Monitoring Report 2015. Click here to view in English and here for Arabic.
• Audit Monitoring Report 2014. Click here to view in English and here for Arabic.
• Audit Monitoring Report 2013. Click here to view in English and here for Arabic.
• Audit Monitoring Report 2008-2012. Click here to view in English and here Arabic.
An Auditing Practice Note highlights new, emerging, or otherwise noteworthy circumstances that may affect how a Registered Auditor conducts an audit in the DIFC. A Registered Auditor should determine whether and how to respond to these circumstances based on the specific facts presented. A Practice Note is non-binding and does not have the status of a DFSA Rule or Guidance.
• Auditing Practice Note No 1 - Understanding the audited person’s Regulatory Environment (January 2017).
Annual Audit Outreach
Annually, the DFSA conducts a dedicated outreach for its Registered Auditors. The purpose of this session is to present the inspection findings of the previous inspection cycle while providing a platform for Registered Auditors to discuss topical matters of interest. The event is intended for:
• Managing Partners
• Audit Principals registered to conduct audits of Authorised Firms, Authorised Market Institutions, Domestic Funds and Public Listed Companies
• Money Laundering Reporting Officers of Registered Auditors
• Audit managers who have worked, or are expected to work on audits of Authorised Firms, Authorised Market Institutions, Domestic Funds and Public Listed Companies
Breakfast Briefings is a joint initiative between the DFSA and the Institute of Chartered Accountants in England and Wales (ICAEW) to discuss and raise awareness of key pertinent matters affecting the accounting and auditing profession. The target audience is DFSA Registered Auditors and ICAEW Members. To-date, the following Breakfast Briefings have been organised:
• The role of audit monitoring in improving the quality of, and confidence in the financial information in the Middle East (March 2010).
• The future of audit (September 2010)
• Importance of Professional Accounting Bodies (September 2011)
• Detection of Fraud: Whose role is it? (March 2012).
• The Challenges of Emiratisation: Attracting Talent into the Finance Industry (April 2013).
• Extended Audit Reports (May 2016).