Auditor Independence
C4-2.2.6
Before a
category 4 investment firm appoints an auditor, it must take reasonable steps to ensure that the auditor has the required skill, resources and experience to carry out the audit properly, and is independent of thelicensee . For an auditor to be considered independent, it must, among things, comply with the restrictions in this Section.Added: January 2022C4-2.2.7
If a
category 4 investment firms becomes aware at any time that its auditor is not independent, it must take reasonable steps to remedy the matter and notify the CBB of the fact. The CBB may require the appointment of a new auditor if the issue is not resolved within a reasonable timeframe.Added: January 2022C4-2.2.8
Category 4 investment firms must not provideregulated services to their auditors or outsource their internal audit function to the same firm that acts as their external auditors.Added: January 2022C4-2.2.9
A partner, director or manager on the engagement team of auditing a
category 4 investment firms may not serve on the Board or in acontrolled function of thelicensee , for two years following the end of their involvement in the audit, without prior authorisation of the CBB.Added: January 2022C4-2.2.10
The Bahrain Commercial Company’s Law and the CBB Law provide further requirements with regards to the
licensee ’s relationship with auditors.Added: January 2022
