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  • Other Relationships

    • AU-1.5.3

      Islamic bank licensees and their auditor must comply with the restrictions contained in Article 217 (c) of the Commercial Companies Law (Legislative Decree No. (21) of 2001), as well as in Article 61(d) of the CBB Law.

      Amended: January 2011
      October 07

    • AU-1.5.4

      Article 217(c) of the Commercial Companies Law prohibits an auditor from (i) being the chairman or a member of the Board of Directors of the company he/she audits; (ii) holding any managerial position in the company he/she audits; and (iii) acquiring any shares in the company he/she audits, or selling any such shares he/she may already own, during the period of his audit. Article 61 (d) of the CBB Law prohibits an auditor from (i) being the chairman or a director of the company he/she audits (ii) acting as a managing director, agent or representative of the company concerned; and (iii) taking up any administrative work in the company, or supervising its accounts, or having a next of kin in such a position. Furthermore, the auditor must not be a relative (up to the second degree) of a person assuming management or accounting duties in the company.

      Amended: October 2014
      October 07

    • AU-1.5.5

      The restrictions in Paragraph AU-1.5.3 apply to branches of foreign bank licensees as well as Bahraini Islamic bank licensees.

      Amended: April 2020
      Amended: October 2011
      Added: October 07

    • AU-1.5.6

      A partner, Director or manager on the engagement team of auditing an Islamic bank licensee may not serve on the Board or in a controlled function of the licensee, for two years following the end of their involvement in the audit, without prior authorisation of the CBB.

      October 07

    • AU-1.5.7

      [This Guidance was deleted in January 2011].

      Deleted: January 2011