The Dubai Financial Services Authority (DFSA) released, today, an Audit Monitoring Report (Report) detailing key findings of audit inspections conducted by the DFSA from January 2008 to December 2012. This is the first public report issued by the DFSA on its monitoring programme of Auditors registered in the Dubai International Financial Centre (DIFC) and able to conduct audits of financial firms and exchanges.

Mr Ian Johnston, Chief Executive of the DFSA said: “The DFSA’s audit monitoring programme aims to promote high-quality audits of the financial statements of financial institutions, domestic funds, DIFC exchanges and their publicly listed entities. Our regulation and supervision is risk-based and involves both desk-based surveillance and intensive on-site verification to assess whether Auditors meet our requirements and applicable international standards.”

During the period, covered by the Report the DFSA conducted thirty three (33) on-site assessments, assessed fifty six (56) Audit Principals and reviewed one hundred and six (106) audit engagement files.

Mr Johnson added: “Overall, we observed improvements in the conduct of audit work over the five (5) year period. Our on-site audit inspections commenced in 2008 with all registered and appointed Auditors being seen at least twice during that five year period. However, the Report identifies a number of areas where Auditors need to focus their attention and make further improvements to ensure audit quality.”

Issuing the DFSA’s Report is consistent with principles of transparency and accountability of regulation, observed by Audit regulators internationally.