DFSA Announces New Rules For Auditors

by Lorys Charalambous, Tax-News.com, Cyprus

01 December 2006

The Dubai Financial Services Authority has announced rule changes in relation to auditors who audit Authorised Firms, Authorised Market Institutions and Collective Investment Funds domiciled in the Dubai International Financial Centre.

The new rules prescribe the standards that apply to auditors, and have come about after extensive consultation with industry stakeholders.

Key features of the changes include review by the DFSA at the time of application and on an ongoing basis, of an auditor’s systems, policies, procedures and controls to ensure compliance with:

• International Standards on Auditing and Quality Control issued by the International Auditing and Assurance Standards Board (IAASB) of IFAC;
• The Code of Ethics for Professional Accountants issued by the International Ethics Standard Board for Accountants (IESBA) of IFAC; and where applicable, Islamic Accounting and Auditing Standards issued by the Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI);
• The Code of Ethics for Accountants and Audit Firms of Islamic Financial Institutions issued by the Accounting and Auditing Organisation of Islamic Financial Institutions from time to time (AAOIFI).

The DFSA considered that the previous requirements applicable to auditors needed enhancement to reflect both the DFSA’s risk based approach to regulation and international standards applicable to the registration and supervision of auditors.

“These new rules are an important component in enhancing the standard of audit and auditor supervision in the DIFC and prescribe a regime that is the equivalent of that found in the world’s major capital markets," noted David Knott, DFSA CEO.

"The changes have been welcomed enthusiastically by all major auditing firms. It is evidence of the DFSA’s willingness to embrace and promote international best practice where it will improve transparency and investor confidence," he added.

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