1. The DFSA Audit Oversight Matt Gamble / Naweed Lalani 12 September 2012

2. Session Overview DFSA Audit Oversight
Audit oversight of Public Listed Companies – What is different?
Why we did this?
Key requirements
DFSA Supervisory Tools
Starting position

3. DFSA Audit Oversight
Auditors of Authorised Firms
Auditors of Authorised Market Institutions
Auditors of Public Listed Company
Public Listed Companies
A person incorporated or formed in the DIFC and is admitted to an official list of securities in the DIFC or is admitted to an equivalent list of securities in another jurisdiction

4. Audit oversight of Public Listed Companies (PLCs)
– What is different?
Nothing
The Markets Rule for auditors of PLCs are mirror image of the Gen Rule for auditors of AFs and AMIs
It is an extension of the existing audit regime to the auditors of Public Listed Companies

5. Why we did this?
Currently, in the EU auditors for a listed company in an EU member state may be from another member state or be from a jurisdiction outside the EU
If the auditors are from a jurisdiction outside the EU they must be overseen by a regulator of equivalent quality and status
In the DIFC, the DFSA has a comprehensive regime in place for the supervision of Auditors. Accordingly, to ensure that the DIFC is considered by the EU as equivalent, the DFSA undertook regulatory oversight of auditors of PLCs

6. Why we did this? (cont)
Secondly, these changes now allow the DFSA to meet Principle 8 of the Core Principles of Independent Audit Regulators by the International Forum for Independent Audit Regulators ("IFIAR") of which the DFSA is a member

7. Key requirements
Auditors of PLCs need to be registered with the DFSA before providing any assurance services to the PLCs
PLCs should ensure that their current auditors have completed the registration with the DFSA and any new auditors which they appoint are registered with the DFSA
The registration is evident from the DFSA Public Register (

8. Key requirements (cont)
Auditors of PLCs must comply with:
International Standards on Auditing
International Standards on Quality Control
IFAC Code of Ethics for Professional Accountants
Comply with the UAE Federal Law no 4 of 2002 regarding Criminilisation of Money Laundering
Ensure that all employees engaged in audit work undertake continuing professional development
Hold adequate professional indemnity insurance covering all types of civil liability

9. Key requirements (cont)
Appoint Audit Principals to manage the conduct of audit work
Audit Principal:
Is fit and proper
Holds a recognised Professional Qualification
Has at least 5 years of prior relevant audit experience in the past 7 years
Is a member in good standing of a recognised Professional Body

10. DFSA Supervisory Tools
Post registration meeting
Desk-based review
Annual Information Document
Annual AMLO Report
Onsite assessment
Event driven reviews
Thematic reviews

11. IF IT IS NOT DOCUMENTED IT IS NOT DONE!
Starting position
IF IT IS
NOT DOCUMENTED
IT IS NOT DONE!