8.1.1. Requirement to maintain professional indemnity insurance

An Auditor must at all times hold adequate and appropriate professional indemnity insurance which covers all types of civil liability arising in connection with the conduct of the Auditor’s business by its Personnel.

8.1.2. Requirement to maintain run off cover

An Auditor must arrange to hold appropriate run off cover that covers a period of 2 years after the withdrawal of its Licence as an Ancillary Service Provider under the Framework Regulations or its registration as an auditor under the Companies Regulations, whichever last occurs.

8.1.3. Annual reporting

An Auditor must provide to the AFSA, on an annual basis, information relating to the Auditor’s professional indemnity insurance policy including the terms and duration of, and any claims made under that policy.

8.1.4. Obligation to maintain records

An Auditor must maintain proper records and all relevant information relating to:

• (a) its professional indemnity insurance, including the terms of cover and its duration;
• (b) how it determined the adequacy and appropriateness of the cover for the purposes of AUD 8.1.1;
• (c) any insurance claims made by it under its professional indemnity insurance policy; and
• (d) its financial standing including financial statements.

8.1.5. Provision of information

An Auditor must, on request, promptly provide to the AFSA the information referred to in AUD 8.1.4 and any other information reasonably required by the AFSA.

8.2.1. Fit and proper requirements of Audit Personnel

An Auditor must ensure that all Audit Personnel:

(a) remain fit and proper to carry out their role; and

(b) if applicable, undertake continuing professional development in accordance with:

(i) the requirements of the International Federation of Accountants of which the Audit Personnel is a member;

• (ii) any applicable internal standards of the Auditor; and
• (iii) any direction given by the AFSA

8.2.2. Records of continuing professional development

An Auditor must maintain records of continuing professional development undertaken by Audit Personnel.

8.3.1. Obligation to maintain working papers and records

An Auditor must maintain sufficient working papers and records to:

• (a) facilitate proper performance of its functions and duties under AIFC legislation; and
• (b) be able to demonstrate to the AFSA that it has properly performed its functions and duties, for a period of at least 7 years from the date of completion of each audit carried out by it.

8.3.2. Obligation to disclose working papers and records

The working papers and records, however stored, must be capable of production in English on paper and within a reasonable period not exceeding 3 business days if requested by the AFSA.

8.5.1. Notification of changes in core information

An Auditor must provide the AFSA and the Registrar of Companies with reasonable advance notice of any change in:

• (a) its name or any business or trading name under which it carries on its business;
• (b) its legal nature;
• (c) its Audit Principals;
• (d) the address of its principal place of business in the AIFC, where applicable; and
• (e) in the case of a Branch, its registered office or head office address.

8.5.2. Notification of key events

An Auditor must notify the AFSA and the Registrar of Companies immediately if it becomes aware, or has reasonable grounds to believe, that any of the following matters may have occurred or may be about to occur:

• (a) the Auditor fails to satisfy the fit and proper requirements in AUD 2.1.3(a) or the continuing obligations in AUD 3;
• (b) any one of its Audit Principals no longer meets the registration criteria in AUD 2.2;
• (c) the Auditor or any of its Audit Principals fails to comply with their obligations under AIFC legislation;
• (d) any claim is made against the Auditor relating to the provision of Audit Services, including but not limited to, a claim lodged against the Auditor’s professional indemnity insurance policy;
• (e) the Auditor or any of its Employees including the Audit Principals breaches any requirement imposed by any applicable law relating to the provision of Audit Services; or
• (f) a significant failure in the Auditor’s systems or controls.

8.5.3. Notification of actions by other regulators

An Auditor must notify the AFSA and the Registrar of Companies immediately of:

(a) the grant or refusal of any application for, or revocation of, authorisation of the Auditor to carry on audit services in any jurisdiction outside the AIFC;

(b) the Auditor becoming aware that a government or other regulatory authority exercising powers and performing functions related to the regulation of auditors has started an investigation into the conduct of the Auditor or of any of its Audit Principals;

(c) the appointment of inspectors, howsoever named, by a governmental or other regulatory body, including a self-regulatory body or organisation exercising powers and performing functions related to the regulation of auditors, to investigate the affairs of the Auditor or any of its Audit Principals; or

(d) the imposition of disciplinary measures or disciplinary sanctions on the Auditor or any of its Audit Principals in relation to its conduct of audit work by a government or other regulatory authority exercising powers and performing functions related to the regulations of auditors.