The Ministry of Economy (MoEc) has signed a memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) and the Economic Security Center of Dubai to enhance oversight and supervision of auditors working for public joint-stock companies listed in the UAE’s financial markets and local investment funds.
It aims to support the development of auditing profession in the country in accordance with global best practices.
The MoU was signed by H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy; H.E. Dr. Maryam Butti Al Suwaidi, CEO of the Securities and Commodities Authority; and H.E. Faisal Yousef bin Sulaitin, Executive Director of the Economic Security Center of Dubai.
H.E. Al Saleh explained that the UAE seeks to enhance auditing practices, given its key role in regulating the national business environment and developing the corporate governance system, thus contributing to establishing a safe business environment with professional controls of the highest standards.
It aims to boost investor confidence in the UAE’s financial and business markets and solidify its status as a leading global trade and investment hub.
The Undersecretary said: “The MoU is an important milestone in strengthening the national efforts to support oversight of auditors in the UAE. It helps to develop the auditing profession and enhances the competencies of auditing professionals in the country while also encouraging UAE citizens to pursue this profession and attracting global talent in this field.”
H.E. Dr. Maryam Butti Al Suwaidi, CEO of the Securities and Commodities Authority, said: “Through the signing of this MoU, we seek to enhance cooperation to elevate the competencies of auditors in the country in accordance with international best practices. We are aware of the significant impact this profession has on the sustainability of the public joint-stock companies, protecting their assets, and ensuring the accuracy and reliability of their financial statements. It is imperative to ensure the stability of local financial markets amid the rapid changes and technological advancements we are witnessing in the UAE’s economic environment. This requires us, as supervisory and regulatory bodies, to join hands to keep pace with global shifts and enhance the integrity and reliability of the financial reports issued by our companies.”
H.E. Faisal Yousef bin Sulaitin, Executive Director of the Economic Security of Dubai, commented: “The signing of the MoU falls in line with our shared commitment to ensuring compliance with the highest standards of quality and transparency in the financial markets, and providing a safe and stable investment environment that encourages growth and economic development. The MoU sets a framework for cooperation, and foundations and rules for coordination between the parties to verify the quality of auditors’ work in accordance with international auditing standards and professional ethics.”
“Through this agreement, we seek to achieve significant improvement in the commitment levels of public joint-stock companies and local investment funds to disclosure and transparency standards to offer greater protection for investors and all concerned parties. The agreement is a decisive step in enhancing integrity and stability in the financial markets. We also reiterate our commitment to providing all support to ensure the achievement of the MoU’s objectives and the UAE’s strategic economic directions,” H.E. added.
Under the terms of the MoU, a joint work team will be set up to verify the quality of work of auditors working for public joint-stock companies listed in the UAE’s financial markets and the local investment funds, in accordance with international auditing standards, professional conduct and ethics.
The team will measure the extent of their compliance with global financial reporting and other relevant international accounting standards.
The agreement also provides for organising training programs in the financial services industry related to auditing and reviewing accounts from a supervisory and regulatory perspective to develop professional and technical standards in this field.
Besides this, it will facilitate the exchange of information between the parties regarding complaints received on the performance of auditors and the financial violations committed by them.
It will promote the exchange of experiences, studies and research by the parties in line with existing policies, in addition to organising conferences, seminars and awareness-raising workshops for auditors.
Through this MoU, the Ministry aims to strengthen governance and oversight of the auditors of companies listed in the country’s financial markets, and to set a specific framework regarding this oversight. The supervision and inspection procedures will also be shared and harmonised, which will enhance the reputation of the UAE’s financial markets and raise the quality of services provided by auditing professionals.