ADGM fines PKF Accountants and audit principal USD 100,000 for audit failings

ADGM's Registration Authority has penalised an audit firm and its named registered audit principal after an on-site inspection found an audit that fell short of International Standards on Auditing. The action, with penalties totalling against both firm and individual, signals how the RA intends to police audit quality in the centre. A short item, but a pointed one for anyone holding an ADGM audit registration.

• The RA imposed USD 65,000 on PKF Accountants and Business Advisers LLP and USD 35,000 on its registered audit principal, Ms Saranga Omprakash Lalwani.
• The action followed an on-site inspection assessing PKF's compliance with ADGM Auditors Rules and the quality of its audit work.
• Deficiencies included failures to conduct the audit in accordance with International Standards on Auditing as required by the Companies Regulations (Auditors) Rules 2023, and failure to exercise due skill, care and diligence.
• Specific findings covered fraud-risk assessment, insufficient audit evidence, inadequate documentation, and insufficient evidence of the audit principal's involvement.
• Decision Notices for both PKF and Ms Lalwani have been published by the RA.

Executive summary

The Registration Authority of ADGM has taken enforcement action against PKF Accountants and Business Advisers LLP, an ADGM-registered audit firm, and its registered audit principal, Ms Saranga Omprakash Lalwani, imposing financial penalties amounting to USD 100,000 for audit failings identified…

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