The Registration Authority of the Abu Dhabi Global Market imposed a $65,000 fine on PKF Accountants and Business Advisers and a $35,000 penalty on its registered audit principal Saranga Lalwani for multiple audit failings, the authority said in a statement on October 9, 2026. An on-site inspection revealed significant deficiencies in an audit the firm and Lalwani performed for an ADGM-registered entity, according to the regulator. The combined $100,000 penalty reflects breaches of the Companies Regulations (Auditors) Rules 2023, which require compliance with International Standards on Auditing and the exercise of due skill, care and diligence.
The authority’s inspection found that PKF improperly rebutted the risk of fraud in management override of controls, a mandatory risk that cannot be dismissed under the standards. It also identified failures to adequately assess fraud risks, obtain sufficient appropriate audit evidence, maintain proper documentation and demonstrate the principal’s sufficient involvement in the engagement. These shortcomings collectively amounted to non-compliance with required professional standards, the authority reported.
Saranga Lalwani served as the registered audit principal overseeing the work that prompted the enforcement action. The Registration Authority has emphasised that such inspections form a core part of its oversight of auditors registered in the jurisdiction. Similar regulatory actions in prior years have addressed comparable deficiencies in audit execution and reporting.
In a February 2024 case, the authority levied a combined $62,500 penalty on Baker Tilly Middle East and its principal for ISA breaches across two audits, according to announcements from that period. A June 2025 enforcement action resulted in $120,000 in penalties against MBK Auditing and its principal for a series of audit failings and related gaps, the regulator’s records show. These precedents underscore the authority’s focus on maintaining audit quality across ADGM-registered firms.
High-quality audits play a central role in supporting trust in financial reporting for shareholders, investors and other stakeholders, a point the authority has repeatedly highlighted in enforcement statements. The Abu Dhabi Global Market, established under Abu Dhabi Law No. 4 of 2013, maintains its own commercial regulations designed to align with international benchmarks. Registered auditors must meet these expectations to sustain the free zone’s position as a reliable financial centre.
The authority did not disclose the identity of the audited entity in its statement. No immediate public comment from PKF or Lalwani was included in the announcement. The Registration Authority continues to conduct such inspections to assess ongoing adherence to its auditor rules and standards.
