ADGM’s Registration Authority has imposed financial penalties of USD 100,000 against PKF Accountants and Business Advisers LLP and its registered audit principal, Ms Saranga Omprakash Lalwani, for significant deficiencies in audit work. The enforcement action, announced on 9 October 2026, followed an on-site inspection that identified failures to comply with International Standards on Auditing (ISA) and a breach of the Companies Regulations (Auditors) Rules 2023.
- Penalty Amount: USD 100,000
- Entities Penalised: PKF Accountants and Business Advisers LLP and Ms Saranga Omprakash Lalwani
- Key Violations: Deficiencies in fraud risk assessment, insufficient audit evidence, inadequate documentation, and lack of principal involvement
- Regulatory Framework: International Standards on Auditing and ADGM Auditors Rules
The inspection identified substantial breaches in an audit conducted for an ADGM-registered entity. The RA found deficiencies in PKF’s assessment of fraud risks, failures to obtain sufficient and appropriate audit evidence, inadequate audit documentation, and insufficient evidence demonstrating the audit principal’s involvement in the audit process. The firm failed to exercise the due skill, care, and diligence required under ADGM regulations.
The Registration Authority confirms its commitment to maintaining high standards of audit quality and corporate reporting within ADGM. Registered Auditors and Registered Audit Principals are expected to conduct audits in accordance with applicable professional standards and exercise appropriate skill, care and diligence. This action reinforces the importance of robust audit practices and demonstrates that failures to meet regulatory requirements will result in appropriate enforcement action.
– Registration Authority of ADGM
The RA emphasised that due skill, care, and diligence represent key principles expected from all registered auditors and audit principals operating within the international finance centre. The enforcement action signals the regulator’s commitment to maintaining audit quality standards and corporate reporting integrity across ADGM-registered firms.
