ABU DHABI: The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has sanctioned Baker Tilly Middle East Limited (Baker Tilly), an ADGM registered audit firm and, Neil Andrew Sturgeon (Sturgeon), Baker Tilly’s registered audit principal, according to an ADGM media release today.
The RA imposed the following financial penalties for serious failings and gaps in the financial audit work carried out for two ADGM companies which led to non-compliance with the relevant ADGM requirements:
-USD50,000 against Baker Tilly; and
-USD12,500 against Sturgeon.
ADGM’s audit regulatory framework requires ADGM auditors to conduct audits and prepare audit reports in accordance with relevant professional standards, applicable regulations and the International Standards on Auditing (ISA).
During an inspection, the RA found significant failures to adhere to the ISA in the two audits carried out by Baker Tilly and Sturgeon. The breaches of ISA were identified in multiple areas of the audit process, from planning and
execution to completion and reporting.
High-quality audit is vital for reinforcing trust in financial reporting which allows shareholders, investors, and other stakeholders to rely on financial statements to make informed decisions. The RA expects its registered auditors and audit principals to ensure that all audit work carried out by them is performed diligently, competently and in accordance with all relevant technical and professional standards.
The Registration Authority, notes, ‘One of the RA’s key regulatory objectives is to promote high-quality audit, which is an essential element of a strong financial and business ecosystem. High-quality audits directly contribute to the integrity of markets, provide investor protection and enable the promotion of businesses with confidence. A robust audit regime and monitoring program help ensure auditors do not fall short of the standards expected from them while also increasing the reliability of financial reporting. The RA will use all regulatory tools at its d
isposal from outreach to enforcement, as appropriate, to promote high standards of audit quality’.
Source: Emirates News Agency