UAE tightens supervision of auditors
The goal is to align auditing practices with global standards
Dubai: The Ministry of Economy has signed a memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) and the Economic Security Center of Dubai. The purpose of this agreement is to improve the supervision of auditors working for public joint-stock companies listed in the UAE’s financial markets and local investment funds. The goal is to align auditing practices with global standards.
Under the terms of the MoU, a joint work team will be established to assess auditors’ work for public joint-stock companies and local investment funds. This assessment will be done in accordance with international auditing standards, professional conduct, and ethics. The team will evaluate their compliance with global financial reporting and other relevant international accounting standards.
“Through the signing of this MoU, we seek to enhance cooperation to elevate the competencies of auditors in the country in accordance with international best practices,” said Dr. Maryam Butti Al Suwaidi, CEO of the Securities and Commodities Authority.
It is imperative to ensure the stability of local financial markets amid the rapid changes and technological advancements we are witnessing in the UAE’s economic environment.
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“This requires us to join hands to keep pace with global shifts and enhance the integrity and reliability of the financial reports issued by our companies.”
The UAE aims to strengthen its role in regulating the national business environment and developing corporate governance. This initiative will establish a secure business environment with high professional standards. It also intends to bolster investor confidence in the UAE’s financial and business markets, solidifying its position as a prominent global trade and investment hub.
The MoU helps to develop the auditing profession and enhances the competencies of auditing professionals in the country while also encouraging UAE citizens to pursue this profession and attracting global talent in this field.
The agreement also includes the organization of training programs related to auditing and regulatory perspectives in the financial services industry. These programs aim to enhance professional and technical standards in this field. Additionally, the parties will share information regarding complaints against auditors and financial violations. They will also exchange experiences, studies, and research, while organizing conferences, seminars, and workshops for auditors.
“The MoU sets a framework for cooperation, and foundations and rules for coordination between the parties to verify the quality of auditors’ work in accordance with international auditing standards and professional ethics,” said Faisal Yousef bin Sulaitin, Executive Director of the Economic Security of Dubai.
Through this MoU, the Ministry seeks to improve governance and oversight of auditors working for companies listed in the UAE’s financial markets. It will establish a clear framework for this oversight and promote the harmonization of supervision and inspection procedures.