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MENAFN- Mid-East Info) Highlights of the DFSA Audit Monitoring Report 2024-25:
First transparency reports published by auditors of Public Listed Companies under DFSA Rules – the DFSA is the first UAE audit regulator to mandate such disclosures.
A higher proportion of audit engagements rated satisfactory, and fewer unsatisfactory ratings, than in previous cycles.
74% increase in total audit fees, reaching US$ 33.5 million – providing the profession with resources to invest in quality.
Continuing professional development (CPD) hours grew to 10,802 (+17.7% vs previous cycle), in line with the expanding population within DIFC.
1,267 financial statement auditor's reports and 1,968 regulatory reports signed, reflecting continued growth in the DIFC audit market.
Dubai, United Arab Emirates,July 2026: The Dubai Financial Services Authority DFSA, the independent banking, financial services, and markets regulator of Dubai International Financial Centre DIFC, published today its 9th Audit Monitoring Report: Setting the Standard in Audit Quality within Dubai International Financial Centre. The report summarises the insights gathered from the DFSA's audit monitoring visits to Registered Auditors in DIFC between 1 January 2024 and 31 December 2025.
The report provides comprehensive insights into audit inspection outcomes, identifies areas of leading practice, and reinforces the importance of robust audit methodologies, professional scepticism, and effective quality management systems. It serves as a benchmark for audit firms operating within DIFC and demonstrates the Centre's ongoing commitment to maintaining leading governance and financial reporting standards.
Mark Steward, Chief Executive of the DFSA, said:“High-quality audits are fundamental to resilient financial markets. The Dubai Financial Services Authority's (DFSA) 9th Audit Monitoring Report: Setting the Standard in Audit Quality within Dubai International Financial Centre, demonstrates our commitment to raising standards, encouraging continuous improvement, and reinforcing confidence in DIFC's financial ecosystem.
The DFSA is dedicated to a supervisory approach that is firm but fair, collaborative but uncompromising on high quality. As DIFC continues to grow in depth and breadth, we will continue to work with the audit profession to ensure high standards.”
The inspection cycle covered 26 inspections across 93 engagement files. The report found a higher proportion of engagements rated satisfactory, and fewer unsatisfactory ratings, than in previous cycles – alongside continued investment in technical competence, with Registered Auditors logging 10,802 CPD hours during the period.
The 2024-25 cycle marked several firsts. Auditors of Public Listed Companies published their first transparency reports under the DFSA Rulebook requirements, disclosing their governance, quality management systems, and internal culture – marking a major shift in regional oversight and establishing a new benchmark for disclosure that is expected to deepen over time. The DFSA also published its first thematic review on Audit Working Papers Archiving and Retention, and signed Memoranda of Understanding with the UAE Ministry of Economy and Tourism and the UAE Capital Market Authority to strengthen national supervisory coordination.
Total audit fees charged by Registered Auditors reached US$ 33.5 million during the period, a 74% increase on the prior cycle, reflecting the continued growth and increasing complexity of the DIFC audit market. To ensure this progress continues, the DFSA is closely monitoring a shift in how engagements are being staffed: a decrease in Audit Principal involvement on engagement hours, with increased reliance on audit managers. The DFSA highlighted this as an area of focus to safeguard tone at the top and the quality of oversight on engagements as the market continues to grow.
The report also highlights five priority thematic findings that require continued attention across the profession:
Supporting the audit opinion: The rationale must be clearly articulated for key audit judgements, effectively linking identified challenges to the final audit opinion.
Investment valuation: Expert assumptions must be rigorously challenged and underlying data be independently verified rather than relying on passive oversight.
Related parties: Related-party transactions must be assessed for alignment with the audited firm's business model and internal controls, not only for accounting accuracy.
Revenue recognition: Procedures must be tailored to specific revenue streams.
Understanding the audited entity: Audit procedures must be continuously updated as new risks emerge during planning, rather than on an emphasis of matter in place of substantive testing.
Collaboration continues to elevate standards – through partnerships with UAE regulators, engagement with international standard-setters, and participation in global regulatory forums – reinforcing that sustainable audit quality is achieved not in isolation but through shared learning, coordinated oversight, and alignment with global best practices.
Looking ahead, the DFSA's 2026 inspection focus will cover Systems of Quality Management, the use of artificial intelligence in audit, and revenue recognition, with a thematic review on governance and culture planned for 2026-27.
The full DFSA Audit Monitoring Report 2024-25: Setting the Standard in Audit Quality within Dubai International Financial Centre is available on the DFSA website.
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