AU-3.1.1

Islamic bank licensees that are required to publish financial disclosures in accordance with Chapters PD-2 and PD-3 must arrange for their external auditor to review these prior to their publication.

AU-3.1.2

Chapter PD-2 requires branches of foreign bank licensees operating as retail banks to publish on semi-annual basis summary information on their balance sheet and profit and loss account, in the same format as their annual audited accounts. Chapter PD-3 requires all locally incorporated Islamic bank licensees to publish quarterly financial statements, in accordance with Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). For products and activities not covered by AAOIFI, International Accounting Standards (IAS) should be followed.

AU-3.1.3

Locally incorporated banks must arrange for their external auditor to review the annual disclosures required in Module PD, Section PD-1.3 and Chapter PD-6, prior to their submission to the CBB or their publication. This review must be in the form of an agreed- upon procedures report (see also PD-A.2.4). The report must be submitted to the CBB within 4 months of the year end of the concerned bank (see also Paragraph BR-1.1.4(c)).

AU-3.1.4

Locally incorporated banks must arrange for their external auditor to review the disclosures in the half-yearly financial statements required by Module PD, Paragraph PD-3.1.6 prior to their submission to the CBB or their publication. This review must be in the form of an agreed upon procedure report. This report must be submitted to the CBB within 2 months of the end of the half-year reporting period of the concerned bank (see also Section BR-2.2).

AU-3.2.1

Islamic bank licensees must arrange for their external auditor or a consultancy firm approved by the CBB as per Paragraphs FC-4.3.2 and FC-4.3.2A, to report on the licensee's compliance with the requirements contained in Module FC (Financial Crime), at least once a year.

AU-3.2.2

The report specified in Rule AU-3.2.1 must be in the form agreed by CBB, and must be submitted to the Compliance Directorate at the CBB by the 30th of June of the following year (See Paragraph FC-4.3.5).

AU-3.2.3

The context to the above requirement can be found in Section FC-4.3.

AU-3.3.1

[This paragraph was deleted in January 2011].

AU-3.3.2

[This paragraph was deleted in January 2011]

AU-3.4.1

Islamic bank licensees must arrange for their external auditor to provide to the CBB explanations for any material differences in data reported in the bank's audited or reviewed accounts and in the Prudential Information Returns for Islamic Banks (PIRI).

AU-3.5.1

Islamic bank licensees that have been given CBB approval to apply behavioural adjustments to the liquidity data provided in Section E of the PIRI Form, must arrange for their external auditor to verify the supporting data used to support the behavioural adjustments made.

AU-3.5.2

Please refer to Module LM and to Section BR-5.2. Banks that have at least 2 years' worth of supporting data may seek CBB approval to apply behavioural adjustments to certain of their reported liquidity data, instead of reporting contractual maturities.

AU-3.6.1

Islamic bank licensees must arrange for their auditor to review the licensee's quarterly Prudential Information Returns to the CBB, prior to their submission, unless otherwise exempted in writing by the CBB. The review must be made in the form of an Agreed Upon procedures Report (as outlined in BR-3).

AU-3.6.2

Islamic bank licensees are required to submit a quarterly Prudential Information Return (PIR). Islamic bank licensees may apply in writing to CBB for an exemption from the requirement that the PIR be reviewed by the licensee's external auditor: this exemption would normally only be given where the licensee had established a track record of accurate and timely reporting, and there were no other supervisory issues of concern. Further details on the CBB's reporting and related requirements, including the precise scope of the auditor's review and attestation, are contained in Module BR (CBB Reporting).

AU-3.6.3

For Bahraini Islamic bank licensees, all existing exemptions in respect of PIRI review as at 31^st December 2014 will cease.

AU-3.7.1

Unless specifically excluded in accordance with Paragraph AU-3.7.3, Islamic bank licensees must arrange for their external auditor or a consultancy firm approved by the CBB as per Paragraph BR-4A.3.2, to report on the bank's compliance with the requirements contained in Chapter HC-5, at least once a year.

AU-3.7.2

The report specified in Rule AU-3.7.1 must be in the form agreed by the CBB, and must be submitted by the bank to the supervision point of contact at the CBB when the audited financial statements are submitted, i.e. within 3 months of the bank's year end (See Section BR-4A.3).

AU-3.7.3

Where an Islamic bank licensee has no:

whose total annual remuneration (including all benefits) is in excess of BD100,000, Paragraph AU-3.7.1 does not apply. In this instance, an annual notification must be sent to the CBB once it is determined that this situation applies.

AU-3.8.1

Islamic bank licensees must arrange for their external auditor to confirm the accuracy of the data reported on the Eligible accounts report for the deposits/unrestricted investment account protection funds (Appendix BR-16) as required under Paragraph BR-1.4.2.

AU-3.8.2

The report from the external auditor required under Paragraph AU-3.8.1 must be submitted to the CBB at the same time as the due date for Appendix BR-16, that is, two months after the financial year end.