Baker Tilly Middle East has been fined 50,000 dollars by Authority of Abu Dhabi Global Market for ‘Critical Flaws‘ in Dual Audits
The auditing company of Dubai, Baker Tilly has been fined $50,000 by the Regulatory authority of ADGM. The penalty was levied because of “critical flaws and inconsistencies” in their performance for the two ADGM firms. Moreover, Neil Sturgeon, the licensed audit partner, also received sanctions and will have to make a payment of $12,000.
The Regulatory authority of ADGM has identified that the tasks carried out by Baker Tilly Middle East have resulted in the non-adherence to the prescribed pertinent requirements. These requirements require the auditors licensed under the ADGM to carry out audits as well as plan audit documentation in compliance with the regulatory requirements, the Global Audit Standards and relevant professional standards.
During an inspection conducted by the Regulatory authority, several serious non-compliances with the ISA standards were noted in the two audits performed by Baker Tilly Middle East Limited and Sturgeon. In addition, a number of violations were found in the planning and the execution phase of the audit process, as well as in the concluding stage when the results are reported.
Zero tolerance for non-compliance
“Ensuring a sound audit practice is necessary for increasing the credibility of financial statements which provides investors, shareholders, and other stakeholders with the reliable information required for making sound decisions on the basis of financial statements,” according to the statement. “The RA expects that the companies’ registered auditors and audit principals will complete every audit task with professionalism, efficiency, and according to technical and professional requirements.”
The major goal of the Registration Authority is to promote high-quality audits because they play an important role in the stability of the financial and business environment. High-quality audits are essential for protecting market integrity, securing investors’ interests, and providing assurance to businesses.
“It is crucial to enforce a comprehensive audit strategy and monitoring activity to improve audit quality and improve the reliability of financial reports. To maintain higher standards of audit quality, the Regulatory Authority (RA) will utilize a number of regulatory tools ranging from outreach to enforcement as required.”
