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  • AA-5.2 AA-5.2 The Required Report

    [The Rules and guidance in this Section were moved to Section BR-3.5 in October 2011]

    • AA-5.2.1

      Commissioned reporting accountants would normally be required to report on one or more of the following aspects of a licensee's business:

      (a) Accounting and other records;
      (b) Internal control systems;
      (c) Returns of information provided to the CBB;
      (d) Operations of certain departments; and/or
      (e) Other matters specified by the CBB.
      Adopted: July 2010

    • AA-5.2.2

      Reporting accountants will be required to form an opinion on whether, during the period examined, the licensee is in compliance with the relevant provisions of the CBB Law and the CBB's relevant requirements, as well as other requirements of Bahrain Law and, where relevant, industry best practice locally and/or internationally.

      Adopted: July 2010

    • AA-5.2.3

      The reporting accountants' report should follow the format set out in Appendix EN 1.

      Adopted: July 2010

    • AA-5.2.4

      Unless otherwise directed by the CBB or unless the circumstances described in section AA-5.3 apply, the report should be discussed with the board of directors and/or senior management in advance of it being sent to the CBB.

      Adopted: July 2010

    • AA-5.2.5

      Where the report is qualified by exception, the report should clearly set out the risks which the licensee runs by not correcting the weakness, with an indication of the severity of the weakness should it not be corrected. Reporting accountants will be expected to report on the type, nature and extent of any weaknesses found during their work, as well as the implications of a failure to address and resolve such weaknesses.

      Adopted: July 2010

    • AA-5.2.6

      If the reporting accountants conclude, after discussing the matter with the licensee, that they will give a negative opinion (as opposed to one qualified by exception) or that the issue of the report will be delayed, they must immediately inform the CBB in writing giving an explanation in this regard.

      Adopted: July 2010

    • AA-5.2.7

      The report should be completed, dated and submitted, together with any comments by directors or management (including any proposed timeframe within which the licensee has committed to resolving any issues highlighted by the report), to the CBB within the timeframe applicable.

      Adopted: July 2010