MCA Auditors and Advisors LLP and its registered audit principal have been penalized a combined USD 88,000 by the Abu Dhabi Global Market Financial Services Regulatory Authority (ADGM RA) for audit failures uncovered during a compliance inspection. The enforcement action, announced on October 23, 2026, marks a regulatory crackdown on audit quality standards within the emirate’s international financial centre.
- Total penalties: USD 88,000
- Regulated entity: MCA Auditors and Advisors LLP
- Regulator: ADGM Registration Authority
- Date: October 23, 2026
The RA identified deficiencies spanning multiple critical audit functions during its on-site inspection of MCA Auditors‘ work on an ADGM-registered company. Lapses included inadequate risk assessment procedures, insufficient fraud risk considerations, incomplete group audit requirements, and poor communication with those responsible for governance. The regulator also found material audit evidence gaps and limited evidence demonstrating the audit principal’s involvement throughout the engagement.
In setting penalty amounts, the RA considered factors including the firm’s cooperation during the inspection, its acknowledgement of findings, a root-cause analysis, and a remediation plan submitted by the auditor. The regulator stated that auditors and audit principals hold responsibility for the quality of their audit work and remain subject to ongoing monitoring of compliance with applicable standards.
Registered Auditors and Audit Principals perform an important role in supporting confidence in the accuracy and reliability of financial reporting in ADGM. The failings identified in this matter extended across multiple fundamental areas of the audit process. Registered Auditors and Audit Principals remain responsible for the quality of the audits for which they are appointed. The RA will continue to monitor the quality of audit work undertaken in ADGM and take appropriate action where applicable standards are not met.
– ADGM RA
