Abu Dhabi Global Market’s Registration Authority (RA) has imposed sanctions on Baker Tilly Middle East Limited (Baker Tilly), an ADGM registered audit firm, and Neil Andrew Sturgeon, Baker Tilly’s registered audit principal, of severe failings in financial audit work conducted for two ADGM companies, resulting in non-compliance with ADGM requirements.
The RA has levied a $50,000 penalty against Baker Tilly and a $12,500 penalty against Sturgeon. These penalties stem from significant failures to adhere to International Standards on Auditing (ISA) during audits conducted by Baker Tilly and Sturgeon, ADGM said in a statement on Thursday. The breaches were identified across various stages of the audit process, from planning and execution to completion and reporting.
ADGM’s audit regulatory framework mandates auditors to conduct audits and prepare reports by relevant professional standards, applicable regulations, and ISA. The RA underscores the importance of high-quality audits in fostering trust in financial reporting, enabling shareholders, investors, and stakeholders to make informed decisions.
“One of the RA’s key regulatory objectives is to promote high-quality audit, which is an essential element of a strong financial and business ecosystem,” the Registration Authority noted. “High-quality audits directly contribute to the integrity of markets, provide investor protection and enable the promotion of businesses with confidence.”
“A robust audit regime and monitoring program help ensure auditors do not fall short of the standards expected from them while also increasing the reliability of financial reporting.”
