Comply with new rules or face legal action, auditors told

DEADLINE SET: Auditors have been warned to comply with the new regulations by July 31 next year or face legal action. (Getty Images)

Auditors in the UAE face legal action against if they do not comply with new regulations aimed at boosting transparency and corporate governance by July 31 next year.

The Emirates Securities and Commodities Authority (SCA) and the UAE Ministry of Economy on Saturday warned individual and corporate auditors against “failure to demonstrably and unequivocally comply with the regulations”, state news agency WAM reported.

According to WAM, the new regulations are based on the provisions of Federal Law No. 8/1984 and Federal Law No. 22/1995 on ‘Commercial Companies’, which were enacted to regulate the activities of accountants and auditors in the country as well as to set controls on governance and institutional discipline.

WAM did not give any further information about the new regulations.

The SCA urged auditors and accountants to be independent from the relevant companies and keep away from any direct or indirect relations with client companies, as well as from having memberships on their boards.

It also urged them not to do any work for client companies other than auditing, as under law they are not allowed to offer any technical and administrative services or consultancy.

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