The DFSA Audit Oversight Matt Gamble / Naweed Lalani 12 September 2012

1. The DFSA Audit OversightMatt Gamble / Naweed Lalani12 September 2012

2. Session Overview • DFSA Audit Oversight • Audit oversight of Public Listed Companies – What is different? • Why we did this? • Key requirements • DFSA Supervisory Tools • Starting position

3. DFSA Audit Oversight Public Listed Companies A person incorporated or formed in the DIFC and is admitted to an official list of securities in the DIFC or is admitted to an equivalent list of securities in another jurisdiction

4. Audit oversight of Public Listed Companies (PLCs) – What is different? Nothing • The Markets Rule for auditors of PLCs are mirror image of the Gen Rule for auditors of AFs and AMIs • It is an extension of the existing audit regime to the auditors of Public Listed Companies

5. Why we did this? • Currently, in the EU auditors for a listed company in an EU member state may be from another member state or be from a jurisdiction outside the EU • If the auditors are from a jurisdiction outside the EU they must be overseen by a regulator of equivalent quality and status • In the DIFC, the DFSA has a comprehensive regime in place for the supervision of Auditors. Accordingly, to ensure that the DIFC is considered by the EU as equivalent, the DFSA undertook regulatory oversight of auditors of PLCs

6. Why we did this? (cont) • Secondly, these changes now allow the DFSA to meet Principle 8 of the Core Principles of Independent Audit Regulators by the International Forum for Independent Audit Regulators ("IFIAR") of which the DFSA is a member

7. Key requirements • Auditors of PLCs need to be registered with the DFSA before providing any assurance services to the PLCs • PLCs should ensure that their current auditors have completed the registration with the DFSA and any new auditors which they appoint are registered with the DFSA • The registration is evident from the DFSA Public Register (http://www.dfsa.ae/PublicReqister/Default.aspx)

8. Key requirements (cont) • Auditors of PLCs must comply with: • International Standards on Auditing • International Standards on Quality Control • IFAC Code of Ethics for Professional Accountants • Comply with the UAE Federal Law no 4 of 2002 regarding Criminilisation of Money Laundering • Ensure that all employees engaged in audit work undertake continuing professional development • Hold adequate professional indemnity insurance covering all types of civil liability

9. Key requirements (cont) • Appoint Audit Principals to manage the conduct of audit work • Audit Principal: • Is fit and proper • Holds a recognised Professional Qualification • Has at least 5 years of prior relevant audit experience in the past 7 years • Is a member in good standing of a recognised Professional Body

10. DFSA Supervisory Tools • Post registration meeting • Desk-based review • Annual Information Document • Annual AMLO Report • Onsite assessment • Event driven reviews • Thematic reviews

11. Starting position IF IT IS NOT DOCUMENTED IT IS NOT DONE!