The Dubai Financial Services Authority (DFSA) hosted its annual outreach event for Registered Auditors (RAs) last week, during which it shared the results of its annual audit inspection.

Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening speech at the event. He highlighted the impact of technology on the audit industry, and encouraged greater use of data analytics to improve risk assessment.

Mr Johnston said: “Audit data analytic techniques can be used in audit planning and in procedures to identify and assess risk by analysing data. Although our assessment indicates that audit firms are still at an early stage with big data, we do note the use of technology on audit procedures such as bank confirmations, analytical procedures and journal-entry testing.”
 
Mr Johnston added that, internationally, audit regulators were watching technological developments in this area with great interest. He cited the work currently underway by the International Auditing and Assurance Standards Board (IAASB)’s Data Analytics Working Group. The group was established in 2015 to provide insights into the opportunities and challenges with the use of data analytics in the audit of financial statements.

“DFSA welcomes the work undertaken by the IAASB’s Data Analytics Working Group,” said Mr Johnston. 

The DFSA also discussed the impact of the changes resulting from Consultation Paper 106 on Regulation of Arranging, Representative Office Activities and Financial Promotions and global enforcement trends in audit.

The event was targeted at the Managing Partners, Audit Principals, Money Laundering Reporting Officers and senior audit staff of RAs. Over 65 stakeholders attended the event.