Regulator’s latest Audit Monitoring Report highlights stronger inspection outcomes, enhanced transparency and new priorities for 2026
Dubai: The Dubai Financial Services Authority (DFSA), the independent regulator of financial services conducted in or from the Dubai International Financial Centre (DIFC), has published its ninth Audit Monitoring Report, highlighting improvements in audit quality standards and a significant increase in audit activity across the Centre.
The report, titled “Audit Monitoring Report: Setting the Standard in Audit Quality within Dubai International Financial Centre”, summarises findings from audit monitoring visits conducted between 1st January 2024 and 31st December 2025.
According to the report, the inspection cycle covered 26 inspections across 93 audit engagement files, with a higher proportion of engagements receiving satisfactory ratings and fewer unsatisfactory outcomes compared with previous inspection cycles.
Mark Steward, Chief Executive of the DFSA, said high-quality audits remain fundamental to resilient financial markets.
“The DFSA’s 9th Audit Monitoring Report demonstrates our commitment to raising standards, encouraging continuous improvement, and reinforcing confidence in DIFC’s financial ecosystem,” he said.
“As DIFC continues to grow in depth and breadth, we will continue to work with the audit profession to ensure high standards.”
The report noted continued investment in technical capabilities, with Registered Auditors recording 10,802 Continuing Professional Development (CPD) hours during the review period.
Firsts for the audit profession
The 2024-25 cycle marked several milestones for the DIFC audit sector.
Auditors of public listed companies published their first transparency reports under DFSA Rulebook requirements, disclosing governance structures, quality management systems and organisational culture.
The DFSA also issued 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 aimed at strengthening supervisory coordination.
Audit market continues to grow
Total audit fees charged by Registered Auditors reached US$33.5 million during the period, representing a 74% increase compared with the previous inspection cycle.
The DFSA said the increase reflects the continued growth and greater complexity of the DIFC audit market.
At the same time, the regulator said it is closely monitoring staffing trends within audit engagements, noting a reduction in Audit Principal involvement and increased reliance on audit managers.
The DFSA identified this as an area requiring attention to ensure effective oversight and maintain high-quality standards as the market expands.
Five priority areas identified
The report highlighted five thematic areas requiring continued focus across the profession:
Strengthening the rationale supporting key audit opinions and judgement decisions.Improving scrutiny of investment valuations and expert assumptions.Enhancing assessment of related-party transactions beyond accounting compliance.Tailoring revenue recognition procedures to specific revenue streams.Continuously updating audit procedures when new risks emerge during engagements.Focus areas for 2026
Looking ahead, the DFSA said its 2026 inspection programme will focus on:
Systems of Quality ManagementThe use of artificial intelligence in auditingRevenue recognition practices
A thematic review on governance and organisational culture is also planned for the 2026-27 period.
The regulator said collaboration with UAE authorities, international standard-setters and global regulatory forums will remain central to efforts aimed at maintaining audit quality and supporting confidence in DIFC’s financial ecosystem.
