The Institute of Chartered Accountants in England and Wales (ICAEW) announced partnering with ADGM Registration Authority (RA) to elevate audit standards across the UAE.
The move is aimed at strengthening the UAE’s financial integrity and encouraging high-quality audits, ICAEW said.
“As the UAE’s business environment becomes increasingly sophisticated and global, high-quality audits are essential for maintaining investor confidence and the integrity of financial markets,” said Hanadi Khalife, Head of Middle East, ICAEW.
“By empowering finance teams with the knowledge and tools to excel, we are contributing to a more resilient and sustainable financial ecosystem,” Khalife said.
Tim Land, Executive Director of Monitoring & Enforcement, ADGM, said the regulatory authority is witnessing a positive trend in the UAE, with audit firms becoming more selective in their engagements, driven by a lower risk appetite and a commitment to proper documentation.
“This dedication to high standards reflects the growing maturity of the audit profession and is crucial for ensuring the integrity of financial reporting,” Land said.
As a precursor to the partnership initiative, the UK CA firm hosted a joint audit outreach session at ADGM last week in Abu Dhabi, providing auditors and finance professionals with the skills and tools necessary to meet the highest global benchmarks in auditing.
The session addressed the pressing need for improvement in audit quality, as highlighted in ADGM’s Registration Authority Audit Monitoring Report 2023.
The report revealed that 67 per cent of the inspected firms required significant improvements in their audit work, with common shortcomings including insufficient evidence to support audit conclusions – particularly in revenue recognition, and inadequate risk assessments and understanding of the companies being audited.
Additionally, the outreach covered ADGM RA’s approach to audit supervision and enforcement, including statistics on enforcement actions taken against auditors in 2023 and 2024.
The collaboration between ICAEW and ADGM highlights the UAE’s proactive approach to elevating audit standards, ensuring that the financial sector remains robust, transparent, and aligned with international best practices.
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