Auditor Supervision

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:

*These cycles may vary depending on individual circumstances or risks identified.

Audit Monitoring Reports

Periodically, the DFSA issues a public report detailing our findings from audit inspections carried out over a period of time. These reports also present other relevant quantitative and qualitative data which could be used by the Registered Auditors for internal training purposes.

Practice Notes

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 Monitoring Focus Letters

Annually, the DFSA issues a letter to provide a general overview of the DFSA’s current audit focus. In the event the DFSA determines changes are necessary, the DFSA will inform Registered Auditors accordingly.

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 year 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
• Employees who have worked, or are expected to work on audits of Authorised Firms, Authorised Market Institutions, Domestic Funds and Public Listed Companies

Breakfast Briefings

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:

• IFRS 9 & COVID-19: Reporting and Auditing for Expected Credit Losses (March 2021) To view click here.

• False Assurance (April 2019)
• Impact of Technology on Audit and Finance (December 2017). To view click here.
• Exploring the practical challenges of implementing IFRS 9 for financial institutions (February 2017). To view click here.
• Extended Audit Reports (May 2016). To view click here.
• The Challenges of Emiratisation: Attracting Talent into the Finance Industry (April 2013).
• Detection of Fraud: Whose role is it? (March 2012).
• Importance of Professional Accounting Bodies (September 2011)
• The future of audit (September 2010)
• The role of audit monitoring in improving the quality of, and confidence in the financial information in the Middle East (March 2010).