Abu Dhabi Global Market's Registration Authority imposed penalties of $100,000 on PKF Accountants and Business Advisers LLP and its registered audit principal, Khaleej Times reported. The firm was fined $65,000 and the principal, Saranga Omprakash Lalwani, $35,000.
The fines followed an on-site inspection of the firm's compliance with ADGM's Auditors Rules. Inspectors found that an audit of an ADGM-registered entity was not prepared in accordance with International Standards on Auditing. According to the report, the regulator identified an inadequate assessment of fraud risks, a failure to obtain sufficient audit evidence, weak documentation and insufficient evidence of the principal's involvement.
The regulator said due skill, care and diligence is a fundamental requirement for registered auditors. The article does not name the audited entity or describe its business.
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Khaleej Times — Business ↗This is an original summary of the linked report, selected by Axxion’s GCC market monitor. Facts are attributed to the publication.