Page 99 - Annual Report 2019

96 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

Independent Auditors’ Report to the Board of Directors
of Qatar Financial Centre Regulatory Authority
Report on the Audit of the Financial Statements

Opinion (“Parent entity”) amounting to US$ 54,870 thousand as at 31 Responsibilities of Management
December 2019. During the year, QFC Regulatory Authority and the Audit Committee for the
We have audited the financial statements of Qatar Financial imposed a financial penalty amounting to QR 200 million
Centre Regulatory Authority (“the QFC Regulatory Authority”), (USD 54.8 million) on the Parent entity. The Parent entity Financial Statements
which comprise the statement of financial position as at 31 has not paid the penalty amount on its due date of 4 Management is responsible for the preparation
December 2019, and the statement of comprehensive income, September 2019 or appealed against the penalty imposed and fair presentation of the financial statements in
statement of cash flows and statement of changes in equity by the QFC Regulatory Authority. Consequently, the QFC accordance with IFRSs, and for such internal control as
for the year then ended, and notes to the financial statements, Regulatory Authority filed a debt application with QFC management determines is necessary to enable the
including a summary of significant accounting policies. Civil and Commercial Court (“Court”). The court issued its preparation of financial statements that are free from
judgement in February 2020 declaring the financial penalty material misstatement, whether due to fraud or error.
In our opinion, the accompanying financial statements present with interest as a debt payable to and recoverable by the
fairly, in all material respects, the financial position of the QFC QFC Regulatory Authority. The QFC Regulatory Authority In preparing the financial statements, management is
Regulatory Authority as at 31 December 2019 and its financial is taking necessary steps to enforce the judgement and responsible for assessing the QFC Regulatory Authority’s
performance and its cash flows for the year then ended in recover the financial penalty receivable from the Parent ability to continue as a going concern, disclosing, as
accordance with International Financial Reporting Standards (IFRSs). entity. Our opinion is not modified in respect of this matter. applicable, matters related to going concern and using the
Basis for Opinion Other Information going concern basis of accounting unless management
either intends to liquidate the QFC Regulatory Authority or
We conducted our audit in accordance with International Standards Other information consists of the information included to cease operations, or has no realistic alternative but to do
on Auditing (ISAs). Our responsibilities under those standards in the annual report, other than the financial statements so. The Audit Committee is responsible for overseeing the
are further described in the Auditor’s responsibilities for the and our auditor’s report thereon. Management is QFC Regulatory Authority’s financial reporting process.
audit of the financial statements section of our report. We are responsible for the other information. The QFC Regulatory
independent of the QFC Regulatory Authority in accordance with the Authority’s 2019 Annual Report is expected to be made
International Code of Ethics for Professional Accountants (including available to us after the date of this auditors’ report.
International Independence Standards) (IESBA Code) together
with the ethical requirements that are relevant to our audit of the Our opinion on the financial statements does not
financial statements in Qatar, and we have fulfilled our other ethical cover the other information and we do not express
responsibilities in accordance with these requirements and the any form of assurance conclusion thereon.
IESBA Code. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion. In connection with our audit of the financial statements,
our responsibility is to read the other information identified
Emphasis of Matter above when it becomes available and, in doing so, consider
We draw attention to Note 12 to the financial statements, which whether the other information is materially inconsistent
describes the action taken by management to recover the financial with the financial statements or our knowledge obtained in
penalty receivable from the Parent entity of a registered branch the audit or otherwise appears to be materially misstated.