Sabrina Sohail, Senior Compliance Executive and Secretary of the Apex Directors Club, hosted an event on Wednesday, May 27, with Tim Land, Executive Director of Monitoring and Enforcement, and Talal Samad, Head of Audit, from the ADGM Regulatory Authority (“RA”), in ADGM, Abu Dhabi.
The event focused on audit quality in the 2025 regulatory environment and shared practical insights for directors, industry stakeholders, and auditors.
The RA is committed to fostering a robust regulatory environment where high audit standards are not just expected, but actively upheld. The event served as a timely reminder that quality audits remain fundamental to corporate governance, stakeholder confidence, foreign direct investment, and a well-functioning ecosystem.
Key takeaways from the event
1. Why audit still matters in 2025
Audits are not box-ticking exercises; they are a critical line of defence for protecting stakeholders and improving the quality of information companies publish.
Directors were reminded that audit compliance is not optional, and audit quality is directly linked to corporate accountability.
2. The role of ADGM RA and its audit framework
The RA has laid out a clear roadmap. It expects firms to carry out audits in accordance with global standards and maintain a consistently high bar.
As the audit regulator in ADGM, the RA registers and supervises audit firms and principals and can take action against those who fall short of expected standards.
The RA is committed to being an improvement regulator and providing a level playing field.
3. Observation in the audit market
The RA has seen an increase in filing extension requests that cite audit delays.
Directors are encouraged to see audits as opportunities to improve information quality, not as administrative burdens.
Where concerns around audit quality remain unresolved, audit committees and directors should raise them with the board or directly with the RA.
4. Raising the bar: insights from supervision and enforcement
Through the RA’s 2023 audit inspections, at least one finding was raised at each inspection. Six audit firms were inspected in 2023, and findings from four were disappointing.
The findings included:
- Limited or no use of an appropriate audit methodology and/or financial statement disclosure checklist
- Gaps in the planning procedures, understanding the entity and its environment, and risk assessment
- Insufficient audit evidence (particularly around revenue)
- Poorly executed group audit approach
- Reliance on management inputs and assumptions without professional challenge
- Limited involvement of the audit partner in the audit process from planning to completion
The ADGM RA Audit Monitoring Report 2023 can be accessed via this link.
In 2024, the RA entered the second year of its risk-based audit onsite inspections and inspected seven firms. The findings from 2024 show some improvement compared to 2023.
The RA expects to publish its Audit Monitoring Report for 2024 next month (early July).
5. The boardroom view: what directors should expect from their auditor
Boards and audit committees should play an active part in the audit process.
They are encouraged to support the audit, ensure management and staff maintain a culture focused on financial reporting quality, and provide all information and explanations that may be relevant to financial reporting.
Directors should apply professional scepticism to challenge the scope, depth, and value of every audit.
Closing note
This event reaffirmed that audit quality is not a tick-box exercise - it is a critical element of strong governance, investor confidence, and sustainable growth.
The RA’s ongoing initiatives are clearly aimed at raising standards, encouraging transparency, and supporting the ADGM community with guidance to play an active role in improving corporate reporting.
If you are a board member or part of the finance function, audit matters more than ever. Get involved in the audit process early, facilitate the process, and ensure auditors have the access and understanding they need.
