A Collective Conversation on the Future of the Audit Profession

The future of the audit profession is a topic of increasing significance, especially as the landscape evolves in the United Arab Emirates (UAE). To address this, Baker Tilly UAE recently hosted a Roundtable focused on "Building Capacity and Strengthening Audit Quality." This event brought together key stakeholders, including partners from the leading second-tier international network firms, regulators, and representatives from professional bodies. The discussions centered on the essential role these firms play in upholding confidence in the UAE’s dynamic market, alongside the challenges and opportunities facing the audit profession.

The Foundation of Audit Quality

Audit quality is widely regarded as the bedrock of trust within financial markets. While much attention is often given to the larger global audit networks, the discussion highlighted that second-tier firms are equally vital in supporting the integrity and growth of the UAE’s economy. For these firms to meet rising expectations, they must not only increase in scale but also continually invest in capacity building and quality enhancements to earn the market’s trust.

The Audit Leaders’ Roundtable - A Collaborative Approach

The Roundtable, served as a platform for partners from the top ten, second-tier international network firms to share insights and best practices. The event included active participation from the Dubai Financial Services Authority (DFSA), and professional bodies, including the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA). This collaborative environment ensured that discussions were both technically robust and practical, with a focus on bridging the expectation gap and anticipating future trends in the audit profession.

Core Themes of the Roundtable

The day’s dialogue revolved around three central themes:

• Upskilling and Continuous Learning in Building Capacity and Technical Competencies
• The Role of Technology and Innovation in Improving Audit Quality
• Challenges and Best Practices in Dealing with the Regulatory Landscape in the UAE

A Regulatory Perspective on Audit Quality

The event began with a keynote address by Naweed Lalani, Director of Infrastructure and Audit Oversight at the DFSA. As the independent regulator of the Dubai International Financial Centre (DIFC), Lalani outlined the Authority’s expectations and challenges, emphasizing that high-quality audits are fundamentally linked to high-quality personnel. He noted that insufficient investment in skilled staff and fee undercutting have a detrimental impact on audit quality, urging firms to price audits fairly and reinvest in their teams.

Lalani also addressed questions regarding varying regulatory expectations across different authorities. His guidance was to anchor audit practices in international standards on auditing, as this approach stands up to scrutiny regardless of regulatory differences. He also highlighted the importance of ongoing coordination among regulatory bodies in the UAE.

The Role of Technology and Innovation

Participants discussed the transformative impact of technology on the audit process. While innovation offers considerable potential, it must be coupled with sound governance. Key insights included:

• Automation and artificial intelligence should support, not replace, professional judgement.
• Technology can relieve auditors of routine tasks, allowing more focus on high-risk areas that require insight and scepticism.
• Modern, data-driven approaches may help to attract younger talent to the profession.
• Data analytics enable faster identification of anomalies and risk areas, focusing auditors’ efforts where they are most valuable.

The consensus was that technology is a powerful enabler of audit quality, but only when paired with ongoing investment in people and robust governance. The group agreed that network-wide investment in technology, rather than isolated efforts by individual firms, would help bridge the expectation gap and ensure the profession remains relevant and trusted.

Upskilling and Continuous Learning

The group highlighted the critical importance of attracting and retaining talent through ongoing professional development. A key challenge is the perception among younger generations, who may be discouraged by negative industry news and regulatory actions, leading to hesitancy in joining the profession or taking on greater responsibilities.

There is concern that, within a decade, a talent gap may emerge as current audit partners retire without sufficient new candidates to succeed them. Continuous learning and adaptability are essential, given the rapidly changing standards, technologies, and regulatory requirements. The discussion underscored the following points:

• Formal mentoring pathways may support and enhance retention.
• Positive storytelling and showcasing role models can help attract new talent.
• Embedding learning within firm culture ensures that staff keep pace with both technical and business developments.
• Peer-to-peer programmes can bridge skills gaps across firms and specializations.
• Digital platforms and AI tools can personalise and improve the training experience.

The overall consensus was that building firm capacity is inseparable from building people. Those firms that invest in upskilling and talent attraction will be best positioned to deliver high-quality audits consistently.

Navigating the Regulatory Landscape in the UAE

Operating in the UAE presents the challenge of navigating multiple regulators, each with varying reporting calendars, requirements, and expectations. Key challenges include:

• Multiple regulatory calendars increase compliance risks and demand significant senior management time and attention.
• Inconsistent requirements across DFSA, ADGM, CBUAE, and others make it difficult to implement a unified policy across the firm.
• Varying regulations create uncertainty for firms with clients in multiple jurisdictions.

Best practices discussed included using International standards on auditing as a foundation, strengthening internal controls for consistency, leveraging AI for regulatory reporting, and maintaining regular engagement with regulators. The conclusion reinforced Lalani’s message, firms that focus on quality at the engagement level are better able to navigate regulatory complexity.

The Role of Professional Bodies

The involvement of ICAEW and ACCA highlighted the essential role of professional bodies as partners. These organizations help shape global standards, support continuing professional development, strengthen qualification rigor, and provide training pathways. Their support is vital as firms work to meet the evolving demands of the profession.

Next Steps: Collaboration and Ongoing Improvement

Saad Maniar, CEO of Baker Tilly UAE, concluded the roundtable by emphasizing the importance of moving from discussion to action. Three key initiatives were identified:

• Introducing bi-annual forums for peer-to-peer partner-level dialogue, complemented by broader sessions for smaller firms to share best practices and build capacity across the UAE market.
• Pooling resources and exploring joint initiatives in training and technology to create a stronger, collective impact.
• Sharing positive stories and projecting role models from the audit profession may help attract young talent. 

The roundtable was positioned not as the conclusion, but as the beginning of a shared journey to elevate audit standards in the UAE.

Conclusion: A Shared Responsibility

Michael Armstrong of ICAEW summarized the roundtable by underscoring that audit quality is a shared responsibility across the profession, and both regulators and professional bodies must play their part in sustaining and developing the audit profession. By combining regulatory clarity, responsible technology adoption, investment in people, and collective action, leading networks can help strengthen trust and resilience in the market.

“Quality is not optional, it is the foundation of our profession.”

Participants

A big thank you to all the participants for their contribution, Naweed Lalani, Afzal Koya, Baasab Deyb, Khurram Bhatti, Naveed Akhter, James Mathew, Kush Ahuja, John Donnelly, Prabhakar Kamath, Stany Pereira, Hanadi Khalife, Muhammad Husnain, Helen Bimbassis, Shaji Joseph, Tom Crous, Erica Rose Francisco, Michael Armstrong, Shezad Lakdawala, Hizbullah Khan, Armen Biberian, and Saad Maniar.