ADGM fines PKF and audit principal a combined one hundred thousand dollars

Abu Dhabi Global Market's Registration Authority imposed a combined $100,000 in penalties on PKF Accountants and Business Advisers LLP and its registered audit principal for audit failings.

The firm was fined $65,000 and the audit principal $35,000. The regulator said an on-site inspection identified significant deficiencies in an audit of an ADGM-registered entity.

The authority found that the audit and its report did not comply with International Standards on Auditing. It also identified failures to exercise appropriate skill, care and diligence, in breach of the Companies (Auditors) Rules 2023.

The inspection highlighted shortcomings in fraud risk assessment and audit documentation. The authority said sufficient appropriate audit evidence had not been obtained and that evidence of the principal's involvement in the engagement was inadequate. The enforcement decision concerns the firm's audit work for a client registered in ADGM.