ADGM and Ministry of Economy sign MOU for cooperation on oversight of the audit profession in the UAE
The Registration Authority of Abu Dhabi Global Market (ADGM), the leading international financial centre of Abu Dhabi has signed a Memorandum of Understanding (MoU) with the UAE Ministry of Economy. The MoU seeks to facilitate cooperation and coordination between the parties with respect to the registration and supervision of auditors with the aim of promoting high standards of financial audits in the UAE.
The agreement was signed on 16th December 2018 by Dhaher Bin Dhaher Al Mheiri, Chief Executive Officer of the Registration Authority of ADGM and H.E Humaid Bin Butti Al Muhairi, Assistant Undersecretary for Commercial Affairs, Ministry of Economy.
H.E Humaid Bin Butti Al Muhairi, Assistant Undersecretary for Commercial Affairs, Ministry of Economy, said: “This strategic MOU between Abu Dhabi Global Market and the Ministry of Economy facilitates the exchange of information and expertise between both parties, and strengthens the importance of collaboration among relevant authorities. It represents an important step in reinforcing the country’s, especially Abu Dhabi’s, reputation as a global business hub and attracting leading businesses and investors. The MoU also seeks to align the country’s auditing standards with global best practices and ensure that auditing companies comply with internationally accepted legal and organizational requirements.”
Dhaher Bin Dhaher Al Mheiri, CEO of the ADGM Registration Authority, said: “As a leading international financial centre, ADGM is committed to building confidence and trust for investors and contributing to the sustainable economic growth for Abu Dhabi and the UAE. Our goal is to ensure that the highest standards of quality is maintained when it comes to auditing, by pursuing best practises and increasing transparency. We strive to maintain a sound and reliable capital market for the benefit of local and international investors through this agreement, ADGM and the Ministry of Economy will work hand in hand to coordinate on the oversight and development of the audit profession.”
Auditors provide assurance about the quality of financial information of companies. High quality audit is an important factor in contributing to market and financial system integrity.
The Ministry of Economy is the regulator of auditors in the UAE, while the ADGM Registration Authority regulates auditors registered to perform financial audits in the ADGM jurisdiction. The agreement aims to enhance cooperation in the interest of fulfilling each party’s respective regulatory mandates as well as facilitating mutual assistance and the exchange of information relating to the oversight of audit firms and principals.
The parties have also agreed to coordinate the transfer of knowledge concerning technical, organizational and institutional experiences to advance the oversight of auditors as well as to support the development of the audit profession in the UAE.
In line with the Abu Dhabi Economic Vision 2030 and the UAE Vision 2021, the MoU emphasizes the mutual commitment to strengthen cooperation between local government entities to further Abu Dhabi as an advanced economic and industrial hub with the goal of greater economic diversification for the UAE.