DFSA has released the Audit Monitoring Report for improved audit oversight.

The Dubai Financial Services Authority (DFSA) has released its 8th Audit Monitoring Report, which presents key findings from inspections of Registered Auditors carried out in 2022 and 2023. Over the last two years, the DFSA has conducted a record number of inspections to uphold rigorous audit standards within the Dubai International Financial Centre (DIFC) that align with global best practices.

The report analyzed financial statement audits, regulatory engagements, and anti-money laundering activities, revealing a significant decrease in audit quality, mirroring global trends. The findings also highlight the steps taken by the DFSA to tackle some of the challenges faced by auditors, emphasizing its commitment to upholding the highest standards of audit quality and regulatory oversight.

Additionally, in line with global principles of transparency and accountability upheld by audit regulators, the report emphasizes the importance of integrity and reliability of financial regulations. Through adherence to these principles, the DFSA ensures that the financial practices within the DIFC are transparent, accountable, and globally trusted.

Ian Johnston, Chief Executive of the DFSA, stated, “Effective audit oversight is essential for maintaining trust in our financial systems. This report outlines the challenges we are encountering and the proactive measures we are implementing to ensure that audit quality aligns with global standards. It is crucial for the audit profession to promptly and meaningfully respond to improve audit quality.”