Abu Dhabi: The Registration Authority (RA) under the Abu Dhabi Global Market (ADGM) has fined MCA Auditors and Advisors LLP and its Audit Principal a combined $88,000 (Dh323,180) for audit failures. The RA announced the penalties on October 23.

The regulator split the fines unevenly with MCA Auditors having to pay $52,000 (Dh190,970), while the Audit Principal pays $36,000 (Dh132,210).

The action followed an on-site inspection where RA officials went in to test MCA Auditors’ compliance with ADGM’s Auditors Rules. The inspection was an exercise to review the quality of its work. They found deficiencies in an audit the firm carried out for an ADGM-registered company.

Weak fraud assessment risks

The problems spread across the engagement. The RA flagged weak risk assessment procedures and poor handling of fraud risk. It also found gaps in group audit requirements and in communications with those charged with governance.…