AA-1.1 AA-1.1 Appointment of Auditors
AA-1.1.1
Investment firm licensees must obtain prior written approval from the CBB before appointing or re-appointing their auditors.Amended: January 2007AA-1.1.1A
Where an
investment firm licensee fails to appoint an external auditor within four months from the beginning of the financial year, Article 61 (b) of the CBB Law provides the CBB with the power to appoint the external auditor.Adopted: January 2011AA-1.1.2
As the appointment of auditors normally takes place during the course of the firm's annual general meeting,
investment firm licensees should notify the CBB of the proposed agenda for the annual general meeting in advance of it being circulated toshareholders . The CBB's approval of the proposed auditors does not limit in any wayshareholders' rights to subsequently reject the Board's choice.Amended: January 2007AA-1.1.3
The CBB, in considering the proposed (re-) appointment of an auditor, takes into account the expertise, resources and reputation of the audit firm, relative to the size and complexity of the
licensee . The CBB will also take into account the track record of the audit firm in auditinginvestment firm licensees within Bahrain; the degree to which it has generally demonstrated independence from management in its audits; and the extent to which it has identified and alerted relevant persons of significant matters.Amended: January 2007AA-1.1.4
In the case of
overseas investment firm licensees , the CBB will also take into account who act as the auditors of the parent firm. As a general rule, the CBB does not favour different parts of an investment group having different auditors.Amended: January 2007
