Dubai, UAE – The Dubai Financial Services Authority (DFSA) announced on September 26 that it has accepted an Enforceable Undertaking (EU) from Baker Tilly MKM Chartered Accountants following a series of audit documentation failures.
Baker Tilly did not provide complete and final sets of audit documentation for several audit files in a timely manner, violating the International Standard on Auditing 230 and the International Standard of Quality Management 1. These standards emphasize the importance of proper audit documentation as a means to uphold the integrity of the audit process and support the auditor’s opinion.
This violation persisted over a three-year period, prompting the DFSA to take action. The authority noted Baker Tilly’s cooperation in addressing the issue.
Ian Johnston, Chief Executive of the DFSA, stated, “When auditors fail to meet their responsibilities, it casts doubt on the integrity of financial reporting. Our action today reminds Registered Auditors that as gatekeepers for DIFC financial markets and financial services businesses, it is critical that they comply with the auditing standards.”
The DFSA’s decision underscores the importance of maintaining rigorous auditing practices to ensure the reliability of financial statements within the Dubai International Financial Centre (DIFC).