The Abu Dhabi Global Market (ADGM) has taken enforcement action against the local operations of the auditing firm KPMG Lower Gulf Limited (KPMG).
A fine of $30,000 (over AED 110,000) has been imposed on KPMG for ineffective systems and controls leading to non-compliance with audit requirements.
The Registration Authority (RA) of ADGM found that the company demonstrated a systemic failure to ensure that only its ADGM Registered Audit Principals sign audit reports for entities registered with ADGM.
Prior to imposing the penalty, the RA had engaged in ongoing communication with KPMG over a period of several months regarding concerns over non-ADGM Registered Audit Principals signing audit reports.
The firm was also asked to prevent further occurrences by enhancing its systems and controls.
However, the breaches re-occurred despite KPMG confirming to the RA that systems 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 said in a statement on Thursday.
More from Business
Meta floats $14 a month ad-free plan for Instagram, Facebook in EU
Meta Platforms is exploring a plan that could make users in the European Union shell out as much as $14 to access ad-free versions of Instagram or Facebook or agree to personalised ads for the free versions, the Wall Street Journal reported on Monday.
H.H. Sheikh Mansour opens ADIPEC 2023
His Highness Sheikh Mansour bin Zayed Al Nahyan, the UAE's Vice President, Deputy Prime Minister and Chairman of the Presidential Court, today opened the 39th edition of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
Abu Dhabi's non-oil economy hits highest level since 2014
Abu Dhabi's non-oil economy expanded by 12.3 per cent in the second quarter of 2023 compared to the same period in 2022, while the total GDP grew by 3.5 per cent.
Apple identifies issues causing overheating in iPhone 15
Apple on Saturday said it has identified a few issues which can cause new iPhones to run warmer than expected, including a bug in the iOS 17 software which will be fixed in an upcoming update.
'Taylor Swift effect' brings spending boost to the NFL
The "Swift Effect" will be in full force when the Super Bowl champion Kansas City Chiefs travel to New York on Sunday, as a connection between pop music phenomenon Taylor Swift and NFL tight end Travis Kelce has sent fans into a frenzy.