Abu Dhabi Global Market (ADGM), the esteemed financial hub in Abu Dhabi, has taken decisive action against audit deficiencies by imposing substantial fines on Baker Tilly Middle East Limited and its audit principal, Neil Andrew Sturgeon.
The updated version of the Beneficial Ownership and Control Regulations 2022 (BOC Regulations) provided the framework for ADGM’s enforcement measures, emphasizing accountability and integrity in financial practices.
Baker Tilly Middle East Limited, a prominent consulting and public accounting firm under ADGM’s jurisdiction, incurred a hefty fine of $50,000 from the registration authority (RA) due to significant audit failures. Additionally, Neil Andrew Sturgeon, the registered audit principal at Baker Tilly, faced a fine of $12,500 for non-compliance, a reduction from the initially proposed $25,000 penalty.
The fines, initially set at $75,000, were levied on Baker Tilly for breaches uncovered during audits of two ADGM registered companies, TNH Limited and HC. These penalties were imposed in response to “serious failings and gaps” identified in the financial audit processes of the aforementioned companies.
During inspections, the RA discovered substantial shortcomings in Baker Tilly’s adherence to International Standards on Auditing (ISA), which ADGM strictly follows. These deficiencies spanned various stages of the audit process, including planning, execution, completion, and reporting.
ADGM’s proactive approach underscores its commitment to upholding the highest standards of financial transparency and accountability within its jurisdiction. By holding firms and their principals accountable for lapses in audit quality, ADGM aims to bolster investor confidence and maintain the integrity of its financial ecosystem.
