The Dubai Financial Services Authority (DFSA) announced, today, that it had fined a Dubai-based auditor, Middle East Auditing Office, AED 55,000 (USD $15,000) for conducting audits of the financial statements of a Dubai International Financial Centre (DIFC) company without being registered as an auditor.
Auditors who audit DIFC-based companies are required to be registered by the DIFC Registrar of Companies (RoC). An auditor not registered by the RoC is prohibited from auditing companies based in the DIFC.
An investigation found that Middle East Auditing Office, a licensed accounting firm in Dubai, consented to conduct an audit of three sets of financial statements of a DIFC-based company, but was not registered to do so.
The AED 55,000 fine was imposed on Middle East Auditing Office by the DFSA, acting under a delegation from the RoC to conduct investigations on its behalf. The fine is the first such fine imposed by the DFSA acting under such a delegation.
Mr Ian Johnston, Chief Executive of the DFSA said: “Auditors play an integral role in complying with governance, compliance and financial standards. They are the first line of defence against impropriety and systems and controls failures. The Registrar of Companies and the DFSA registers auditors so that they comply with our high audit standards. In so doing clients of DIFC companies are better protected.”
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