Dubai Financial Services Authority Hosts Annual Audit Outreach

The Dubai Financial Services Authority (DFSA) hosted its annual outreach event for Registered Auditors (RAs) last week, during which it shared the results of its annual audit inspection.

Mr Ian Johnston, Chief Executive of the DFSA, delivered the opening speech at the event. He highlighted the impact of technology on the audit industry, and encouraged greater use of data analytics to improve risk assessment.

Mr Johnston said: “Audit data analytic techniques can be used in audit planning and in procedures to identify and assess risk by analysing data. Although our assessment indicates that audit firms are still at an early stage with big data, we do note the use of technology on audit procedures such as bank confirmations, analytical procedures and journal-entry testing.”
 
Mr Johnston added that, internationally, audit regulators were watching technological developments in this area with great interest. He cited the work currently underway by the International Auditing and Assurance Standards Board (IAASB)’s Data Analytics Working Group. The group was established in 2015 to provide insights into the opportunities and challenges with the use of data analytics in the audit of financial statements.

“DFSA welcomes the work undertaken by the IAASB’s Data Analytics Working Group,” said Mr Johnston.