The Dubai Financial Services Authority (DFSA) said on 26 September that it has accepted an Enforceable Undertaking (EU) from Baker Tilly MKM Chartered Accountants (Baker Tilly).
Baker Tilly failed to assemble complete and final sets of audit documentations for several audit files in a timely manner. This is in violation of the International Standard on Auditing 230, Audit Documentation, and the International Standard of Quality Management 1. Audit documentation demonstrates the integrity of the audit process and acts as a written record that provides support for the auditor’s opinion.
The violation continued over a three-year period.
The DFSA said it acknowledged Baker Tilly’s cooperation in dealing with this matter.
Ian Johnston, chief executive of the DFSA, said: “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.”
More details of the case can be found here.
