ADGM regulator fines MCA Auditors and its audit principal USD 88,000

The Registration Authority of Abu Dhabi Global Market (ADGM) has imposed financial penalties totalling USD 88,000 on MCA Auditors and Advisors LLP and its Audit Principal for audit failures found in an inspection, it said in an announcement on 23 October.

The Authority fined the firm USD 52,000 and the Audit Principal USD 36,000. The announcement does not name the principal. It says an on-site inspection identified deficiencies in an audit of an ADGM-registered company.

The firm's decision notice, dated 4 August 2026, gives the detail. The Authority inspected the firm from 17 to 20 March 2025 and reviewed two client audit files using a risk-based approach. The findings concern one of them, and the client is not named.

The Authority said its findings "included identified deficiencies in multiple areas of the audit, including risk assessment procedures, fraud risk considerations, group audit requirements, communications with those charged with governance, and insufficient evidence over material areas". It added that it "found limited evidence of the Audit Principal's involvement throughout the engagement". In response, the notice records, the firm confirmed that the principal had spent 10 of the 360 engagement hours, said a technical oversight in its audit tool had affected sign-offs, and asserted that its documentation showed the principal's active involvement in all key meetings and discussions. The notice cites breaches of International Standards on Auditing 315 on risk assessment and 500 on audit evidence, among others.

The firm's USD 52,000 is made up of USD 32,500 for contravening Rule 31(1)(a) of the Companies Regulations (Auditors) Rules 2023, on conducting an audit in accordance with the relevant standards, and USD 19,500 for contravening Rule 17(1)(b), on due skill, care and diligence.

In setting the penalties the Authority said it took account of "the cooperation provided, acknowledgement of the inspection findings, MCA's root-cause analysis and remediation plan, amongst other factors". The notice adds that the contraventions "do not appear to be deliberate or reckless". A warning notice of 12 February 2026 had proposed USD 80,000 for the firm, and the Registrar cut that by 35 per cent to USD 52,000.

The notice records those representations. The firm accepted shortcomings in documentation standards, particularly for group audit and fraud risk documentation, but rejected the proposition that deficiencies in the file meant the underlying work had not been performed. The Registrar said the additional evidence did not alter the original findings. The announcement carries no separate statement from the firm.

The notice said payment was due within 30 days of its date and that the firm could, within 30 days, refer the decision to the ADGM Courts for review. Neither the announcement nor the Authority's regulatory actions page, which lists the decision notices for the firm and the principal under the same 4 August date, says whether a referral was made.

The Authority said in the announcement that "Registered Auditors and Audit Principals remain responsible for the quality of the audits for which they are appointed" and that it "will continue to monitor the quality of audit work undertaken in ADGM and take appropriate action where applicable standards are not met". The decision was also reported by Khaleej Times.

Other enforcement decisions from the past month are set out in our September enforcement catch-up, and the professional licensing side of assurance work in our explainer on KGK's sustainability reporting licence exam.