AA-1.1 AA-1.1 Appointment of Auditors
AA-1.1.1
Specialised licensees must obtain prior written approval from the CBB before appointing or re-appointing their auditor.October 2010AA-1.1.2
As the appointment of auditors normally takes place during the course of the firm's annual general meeting,
specialised 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.October 2010AA-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 auditingspecialised 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. Finally, the CBB will also consider the audit firm's compliance with applicable laws and regulations (including legislative Decree No. 26 of 1996; the Ministry of Industry and Commerce's Ministerial Resolution No. 6 of 1998; and relevant Bahrain Stock Exchange regulations).October 2010AA-1.1.4
In the case of
overseas specialised 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 a specialised licensee group having different auditors.October 2010
