DFSA Publishes 9th Audit Monitoring Report: DIFC Audit Fees Rise 74% to US$33.5 Million
Key Facts
- US$33.5 million in audit fees, up 74% from the previous cycle.
- 26 inspections covered 93 audit engagement files.
- First UAE regulator to require PLC auditor transparency reports.
- 2026 focus: SoQM, AI in audit and revenue recognition.
On 9 July 2026, the Dubai Financial Services Authority published its 9th Audit Monitoring Report for the DIFC, showing total audit fees of US$33.5 million, up 74% from the previous cycle.
The DFSA Audit Monitoring Report covers the period from 1 January 2024 to 31 December 2025. During this cycle, the DFSA recorded more satisfactory engagement ratings and fewer unsatisfactory results. This is a clear shift from the concerns raised in the 2022–23 Audit Monitoring Report.
There is another reason this report matters.
For the first time in the UAE, auditors of Public Listed Companies have been required to publish transparency reports. The DFSA has also listed five key findings and confirmed the main areas it will inspect in 2026.
For DIFC boards, this gives a useful early signal. It shows where auditors are likely to ask more questions, where regulators will look more closely, and what areas may receive greater attention in the next inspection cycle.
26 Inspections, 93 Files: The 2024–25 Cycle Delivers Strongest Ratings in Years
The 2024–25 monitoring cycle covered a large part of the DIFC audit market. According to the DFSA, the regulator completed 26 inspections and reviewed 93 engagement files.
The level of audit activity was also high during the same period. Registered Auditors signed 1,267 financial statement auditors’ reports and 1,968 regulatory reports.
Professional development also increased. The report records 10,802 hours of continuing professional development, which was 17.7% higher than the previous cycle.
Taken together, these figures show a wider audit market, more regulatory work and stronger investment in professional training across the DIFC.
2024–25 at a Glance
| Metric (2024–25 cycle) | Figure |
| Inspections completed | 26 inspections across 93 engagement files |
| Total audit fees | US$33.5 million (+74% vs prior cycle) |
| CPD hours logged | 10,802 hours (+17.7% vs prior cycle) |
| Auditor’s reports signed | 1,267 financial statement reports |
| Regulatory reports signed | 1,968 reports |
| Engagement ratings | More satisfactory, fewer unsatisfactory vs previous cycles |
The comparison with the earlier cycle matters.
The 2022–23 Audit Monitoring Report had raised concerns about falling audit quality; however, the latest report shows a different picture.
There were more satisfactory ratings, fewer unsatisfactory results and a clearer sign that standards are moving in the right direction.
The latest results point to a clear turnaround and not just a small change in numbers. They also suggests that the DFSA’s inspection work and follow-up with audit firms are starting to have an impact.
DFSA Chief Executive Mark Steward described the regulator’s approach as “firm but fair, collaborative but uncompromising on high quality.”
That line sums up the position well.
Audit quality has improved, but the DFSA is not lowering its expectations. As the DIFC market grows, Registered Auditors will still be expected to show strong judgement, proper oversight and consistent audit work.
DFSA Becomes First UAE Regulator to Mandate Auditor Transparency Reports
The latest report includes an important new requirement.
During the 2024–25 cycle, auditors of Public Listed Companies published their first transparency reports under the DFSA Rulebook.
According to the DFSA, this makes it the first audit regulator in the UAE to require such reports.
These reports give more information about how an audit firm works. They normally cover:
- The firm’s governance structure
- Systems of Quality Management
- Leadership roles
- Internal quality checks
- Audit culture
- Actions taken to improve quality
This means boards and investors can now look beyond the final audit opinion. They can also see how the audit firm manages quality and how senior leaders oversee the work.
The cycle also included other firsts:
- The first Thematic Review on Audit Working Papers Archiving and Retention
- An MoU with the UAE Ministry of Economy and Tourism
- An MoU with the UAE Capital Market Authority
These steps improve coordination between regulators. They also give boards and investors more information about audit quality, leadership involvement and internal monitoring.
Five Thematic Findings Put DIFC Auditors on Notice
The DFSA report lists five areas that still need attention.
These findings show where audit firms are expected to improve their work.
| Thematic Finding | What the DFSA Expects |
| 1. Supporting the audit opinion | Key audit decisions should be clearly explained and linked to the final audit opinion. |
| 2. Investment valuation | Auditors should challenge assumptions and check the source data independently. |
| 3. Related parties | Transactions should be reviewed against the business model and internal controls, not only the accounting records. |
| 4. Revenue recognition | Audit work should be designed separately for each revenue stream. |
| 5. Understanding the entity | Risk work should be updated when new issues appear during the audit. An emphasis-of-matter paragraph should not replace proper testing. |
The message from the report is clear.
The DFSA expects more evidence in areas involving judgement and risk. This includes:
- Related-party transactions
- Investment valuations
- Revenue recognition
- Changes in business risks
- Support for key audit decisions
For audited companies, this may lead to more questions from auditors. It may also lead to more requests for contracts, valuations, transaction support and detailed revenue records.
The findings suggest that the DFSA is not only checking whether the accounting is correct. It is also checking whether the audit work properly reflects the business, the risks and the substance of the transactions.
Behind the 74% Fee Surge, DFSA Flags a Shift in Audit Staffing
Audit fees increased sharply during the latest cycle.
According to the DFSA:
- Total audit fees reached US$33.5 million
- This was 74% higher than the previous cycle
- The increase reflects the growth and complexity of the DIFC audit market
The wider market has also grown. The DIFC had 8,844 active firms in 2025.
But the report also highlights a staffing issue.
The DFSA found:
- Lower involvement from Audit Principals
- More engagement hours handled by audit managers
- A need to keep senior oversight strong
The regulator said it will continue to monitor this trend. Its concern is that growth should not reduce leadership involvement in audit work.
Audit Principals are expected to set the right “tone at the top.” They also play an important role in:
- Reviewing major audit judgements
- Supervising engagement teams
- Challenging difficult audit areas
- Taking responsibility for audit quality
The earlier monitoring report also tracked Audit Principal involvement. This shows that the issue is part of the DFSA’s wider focus on leadership and supervision.
The fee increase shows that the market is growing. The staffing trend shows that the DFSA also wants to make sure that senior oversight grows with it.
2026 Inspections to Target Quality Management, AI in Audit, and Revenue Recognition
The DFSA has already said what it will look at next.
For 2026, the main inspection areas are Systems of Quality Management (SoQM), the use of Artificial Intelligence in audit, and revenue recognition, according to the latest DFSA Audit Monitoring Report.
There is another review planned as well. During 2026–27, the regulator will look at governance and culture inside audit firms.
AI is now part of the inspection programme for a simple reason. More firms are using it.
The DFSA AI Survey 2025 found that 52% of DIFC firms were using AI, compared with 33% in 2024. That rise helps explain why AI tools have moved onto the audit inspection agenda. The wider shift was also covered in our article on the DIFC becoming the world’s first AI-native financial centre.
The next inspections are likely to look more closely at how these areas work in practice.
Inspectors may check whether SoQM policies are actually being followed, not just written down. They may also ask how AI tools are selected, reviewed and supervised during an audit. Revenue recognition will face similar attention, especially where a business has several income streams or different contract terms.
Auditors will likely need to show the work behind their conclusions. That means records of planning, review, supervision, and the evidence used during the engagement.
What the Report Signals for DIFC Businesses
The report is not only a review of the last two years. It also shows what comes next.
The first point is clear. Audit expectations are going up. Better inspection results and new transparency reports do not mean the DFSA is taking a softer approach. The report suggests the opposite. As the DIFC market grows, the regulator is asking for more.
Audited businesses are also affected.
The findings on related-party transactions, investment valuations and revenue recognition are likely to lead to more questions from auditors. Companies may need to provide contracts, valuation workings, transaction support and clearer revenue records.
The 2026 inspection agenda is already public. SoQM, AI governance and revenue recognition will remain under review.
That gives businesses some warning. Companies with organised records and clear supporting documents are likely to face fewer delays and fewer repeated questions during the audit.
The direction is therefore easy to see.
Audit work in the DIFC is becoming more detailed, and the standard of evidence is rising with it.
How ADEPTS Can Help
ADEPTS is a DIFC-Approved Auditor and works with DIFC entities on statutory audits, audit readiness and related reporting matters.
The areas raised in the DFSA report are common in many audits. Revenue recognition may not be clear. Related-party files may be incomplete. Valuation support may also be spread across different records.
Through its Audit & Assurance services, ADEPTS reviews these areas before and during the audit process. This can include SoQM gap reviews, IFRS 15 support for different revenue streams, related-party documentation, benchmarking support, valuation files and regulatory reporting for DIFC entities.
In our work with DIFC clients, many audit delays are caused by missing or unclear supporting files rather than the accounting entries themselves. When the records, contracts and key workings are ready from the start, the audit usually moves with fewer questions and less back-and-forth.
Conclusion
The 9th DFSA Audit Monitoring Report shows a DIFC audit market that is larger, stronger and more open than before.
Audit results have improved. Fees have increased. New transparency requirements have also been introduced.
But the DFSA is not lowering the bar.
The regulator has already identified the areas it will inspect next, including quality management, AI in audit and revenue recognition. It has also made audit firms more open about how they manage quality and leadership oversight.
For DIFC businesses, the message is simple. The next areas of focus are already known. Companies that keep clear records, support key judgements and deal with documentation gaps early are likely to be better placed when the next audit starts.
References
- Auditor Supervision. https://www.dfsa.ae/what-we-do/supervision/audit-supervision/auditor-supervision.
- AUDIT MONITORING REPORT 2022-23.
https://365343652932-web-server-storage.s3.eu-west-2.amazonaws.com/files/5417/1989/9988/DFSA_Audit_Monitoring_Report_2022-2023.pdf. - DFSA. https://www.dfsa.ae/.
- DFSA and Ministry of Economy and Tourism Sign MoU to Enhance Financial Services Growth and Strengthen Audit and Regulatory Oversight.
https://www.dfsa.ae/news/dfsa-and-ministry-economy-and-tourism-sign-mou-enhance-financial-services-growth-and-strengthen-audit-and-regulatory-oversight. - DFSA Auditor Registration.
https://www.dfsa.ae/what-we-do/supervision/audit-supervision/auditor-registration. - DFSA Rulebook. https://dfsaen.thomsonreuters.com/rulebook/rulebook.
- DFSA Thematic Review: Audit Working Papers Archiving and Retention.
https://365343652932-web-server-storage.s3.eu-west-2.amazonaws.com/files/7817/4849/8043/DFSA_Thematic_Review_-_Audit_Working_Papers_Archiving_and_Retention.pdf. - DIFC Audit Monitoring Reports. https://www.dfsa.ae/your-resources/publications-reports/audit-reports.
- New DFSA AI Survey: Generative AI Adoption Has Nearly Tripled within the DIFC in Last 12 Months as Governance Continues to Develop.
https://www.dfsa.ae/news/new-dfsa-ai-survey-generative-ai-adoption-has-nearly-tripled-within-difc-last-12-months-governance-continues-develop. - The DFSA Publishes 9th Audit Monitoring Report, Underscoring Strengthened Audit Quality and Transparency across DIFC.
https://www.dfsa.ae/news/dfsa-publishes-9th-audit-monitoring-report-underscoring-strengthened-audit-quality-and-transparency-across-difc. - The SCA and DFSA Strengthen Regulatory Cooperation with Memorandum of Understanding on the Oversight of Auditors. https://www.dfsa.ae/news/sca-and-dfsa-strengthen-regulatory-cooperation-memorandum-understanding-oversight-auditors.
