The UAE Central Bank has asked banks in the country to provide data on potential risks in its financial reports in order to enable it to make provisions accordingly.
The data will also help banks reduce risks, according to Trevor Skinner, head of the Department of Inspection and Control of Banks, UAE Central Bank.
He also emphasised the importance of strengthening the relationship between the legislative bodies and auditing firms to raise assessment standards.
Speaking at a seminar in Dubai on the future of auditing, he said that there had been remarkable developments in terms of the legislative structure for audit regulators.
This was reflected in the understanding of current and future risks and the establishment of regulatory authorities requiring entities subject to audit to share more data in their financial reports.
He added that despite the global financial crisis, which highlighted the challenges faced by legislative bodies and auditing firms, the auditing environment in the UAE remained encouraging.
Paul Koster, chief executive officer, Dubai Financial Services Authority, also called for simplification of auditing standards to the extent that all investors could understand them.