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Dubai Financial Services Authority (DFSA): Contents

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GEN 8.6.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

Past version: effective from Mar 1 2010 - Aug 20 2014.
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To view past versions of this module in PDF format, please visit the Archive.

An Authorised FirmG or Authorised Market InstitutionG , as applicable, must in writing require its auditor to:

(a) conduct an audit of the Authorised Person'sG accounts in accordance with the requirements of the relevant standards published by the International Auditing and Assurance Standards Board (IAASB) in respect of its financial business;
(b) produce a report on the audited accounts which states:
(i) whether, in the auditor's opinion, the accounts have been properly prepared in accordance with the requirements imposed by this chapter;
(ii) in particular, whether the accounts give a true and fair view of the financial position of the Authorised PersonG for the financial year and of the state of the Authorised Person'sG affairs at the end of the financial year end; and
(iii) any other matter or opinion relating to the requirements of this chapter;
(c) produce an Auditor's Annual Report which states whether:
(i) the auditor has audited the Authorised Person'sG annual financial statements in accordance with the IAASB;
(ii) the auditor has carried out any other procedures considered necessary, having regard to the IAASB;
(iii) the auditor has received all necessary information and explanations for the purposes of preparing this report to the DFSAG ;
(iv) (in the case of an Authorised FirmG ) in the auditor's opinion, the regulatory returns specified by the applicable RulesG in PING or PIBG have been properly prepared by the Authorised FirmG and provide a true and fair representation of the financial position of the Authorised FirmG , as at the date of the Authorised Firm'sG financial year end;
(v) in the auditor's opinion, the Authorised Person'sG regulatory returns to the DFSAG have been properly reconciled with the appropriate audited accounts;
(vi) in the case of an Authorised FirmG , in the auditor's opinion, that an Authorised FirmG which is subject to an expenditure based requirement has calculated the expenditure based requirement in accordance with the RulesG ;
(vii) in the auditor's opinion, the Authorised Person'sG financial resources as at its financial year end have been properly calculated in accordance with the RulesG and are sufficient to meet the relevant prudential requirements or minimum financial resources requirement; and
(viii) in the case of an Authorised FirmG , in the auditor's opinion, the Authorised FirmG has kept proper accounting records, in compliance with the applicable RulesG in PING or PIBG ;
(d) produce, if the Authorised FirmG controls or holds Client MoneyG , a Client Money Auditor's ReportG which states whether, in the opinion of the auditor:
(i) the Authorised FirmG has maintained throughout the year systems and controls to enable it to comply with the relevant provisions of COB chapter 6 and, if applicable, COB App5;
(ii) the Authorised Firm'sG controls are such as to ensure that Client MoneyG is identifiable and secure at all times;
(iii) any of the requirements in COB chapter 6 and the Client Money ProvisionsG have not been met;
(iv) if applicable, Client MoneyG belonging to Segregated ClientsG has been segregated in accordance with the Client Money ProvisionsG ;
(v) if applicable, the Authorised FirmG was holding and controlling an appropriate amount of Client MoneyG in accordance with COB chapter 6 and with the Client Money ProvisionsG as at the date on which the Authorised Firm'sG audited balance sheet was prepared; and
(vi) if applicable, there have been any material discrepancies in the reconciliation of Client MoneyG ;
(e) produce, if the Authorised FirmG controls or holds Insurance MoniesG , an Insurance MoniesG Auditor's Report which states whether, in the opinion of the auditor:
(i) the Authorised FirmG has maintained throughout the year systems and controls to enable it to comply with the relevant provisions of COB section 7.12;
(ii) the Authorised Firm'sG controls are such as to ensure that Insurance MoniesG are identifiable and secure at all times;
(iii) any of the requirements in COB section 7.12 have not been met;
(iv) if applicable, the Authorised FirmG was holding and controlling an appropriate amount of Insurance MoniesG in accordance with COB section 7.12 as at the date on which the Authorised Firm'sG audited balance sheet was prepared; and
(v) if applicable, there have been any material discrepancies in the reconciliation of Insurance MoniesG ;
(f) produce, if the Authorised FirmG holds or controls Client InvestmentsG , Arranges CustodyG or Provides CustodyG in or from the DIFCG , a Safe Custody Auditor's ReportG in respect of such business as applicable, which states whether, in the opinion of the auditor:
(i) the Authorised FirmG has, throughout the year, maintained systems and controls to enable it to comply with the Safe Custody ProvisionsG in COB App6;
(ii) the Safe Custody InvestmentsG are registered, recorded or held in accordance with the Safe Custody ProvisionsG ;
(iii) there have been any material discrepancies in the reconciliation of Safe Custody InvestmentsG ; and
(iv) any of the requirements of the Safe Custody ProvisionsG have not been met;
(g) submit the reports produced pursuant to Rules 8.6.1(b)–8.6.1(f) above to the Authorised PersonG ; and
(h) notify the DFSAG in writing if he resigns due to significant concerns which have previously been raised with senior management of the Authorised PersonG and which have not been addressed.
Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] DFSA RM66/2009 (Made 1st August 2009). [VER23/08-09]
[Amended] DFSA RM69/2010 (Made 1st March 2010). [VER25/03-10]