The Abu Dhabi Global Market (ADGM) has issued fines totaling $88,000 against MCA Auditors and Advisors LLP and its lead audit principal following a comprehensive review of their professional conduct. The regulatory action was triggered by a routine on-site inspection, which uncovered significant shortcomings in the firm’s auditing processes. Specifically, the inspection highlighted that the firm failed to adhere to required standards regarding risk assessment, fraud detection protocols, and the necessary documentation for material audit areas.

The oversight extended to internal management as well, with the ADGM Registration Authority noting a lack of proper communication with governance bodies and failures in group audit requirements. As a result, the firm was ordered to pay $52,000, while the Audit Principal faces a penalty of $36,000 for their direct involvement in these lapses. The ADGM emphasized that maintaining high audit quality is a non-negotiable obligation for all registered entities, promising to maintain rigorous oversight to ensure that financial standards in the jurisdiction are consistently upheld.