WAM
The Abu Dhabi Global Market (ADGM) has taken enforcement motion in opposition to the native operations of the auditing agency KPMG Lower Gulf Limited (KPMG).
A tremendous of $30,000 (over AED 110,000) has been imposed on KPMG for ineffective programs and controls resulting in non-compliance with audit necessities.
The Registration Authority (RA) of ADGM discovered that the corporate demonstrated a systemic failure to make sure that solely its ADGM Registered Audit Principals signal audit experiences for entities registered with ADGM.
Prior to imposing the penalty, the RA had engaged in ongoing communication with KPMG over a interval of a number of months concerning considerations over non-ADGM Registered Audit Principals signing audit experiences.
The agency was additionally requested to stop additional occurrences by enhancing its programs and controls.
However, the breaches re-occurred regardless of KPMG confirming to the RA that programs and controls had been strengthened.
“Promoting high standards of audit quality is a key regulatory objective of the RA. The RA expects its Registered Auditors to have governance structures as well as systems and controls in place which promote compliance with the RA rules and regulations, and which promptly identify instances of non-compliance,” ADGM stated in a press release on Thursday.
