The Dubai Financial Services Authority (DFSA) hosted its annual outreach event for Registered Auditors (RAs) this week, during which it shared the results of its annual audit inspections carried out in 2017.

Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening address where he commented on the significant progress being made in financial accounting standards, while noting that risks still remain in the audit process. He cited the International Forum of Independent Audit Regulators (IFIAR) fifth annual survey of findings issued last March for the year ended 31 December 2016, which noted a general decline in adverse inspection findings, yet a continued high level of material findings.

Mr Johnston said: “Major audit failures usually result in a regulatory response and as regulators, we seek to ensure that any regulatory response is conducted by persons independent of those involved in the regulatory failure. Once faults are identified, it is also incumbent upon the regulator to take the appropriate and proportionate course of action.

“The overarching objective of DFSA enforcement activities is to prevent, detect and restrain conduct that causes or may cause damage to the reputation of the Dubai International Financial Centre. We work proactively, where possible, to resolve regulatory concerns by taking remedial action to bring firms back into compliance with our legal and regulatory regime,” he said. 

The DFSA also briefed the participants about the DFSA’s preparedness for the upcoming Financial Action Task Force (FATF) mutual evaluation and provided an update on the Supervision Division restructuring plans. Presentations also covered the 2018 Audit Monitoring Focus as issued by the DFSA at the start of the year.

The event was targeted at managing partners, audit principals, money laundering reporting officers and senior audit staff of RAs. Over 90 stakeholders attended the event.