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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > High Level Standards > AA Auditors and Accounting Standards > AA-1 Auditor Requirements > AA-1.5 Licensee/Auditor Restrictions > Other Relationships > AA-1.5.6
  • Other Relationships

    • AA-1.5.4

      Investment firm licenseesG and their auditors must comply with the restrictions contained in Article 217(c) of the Commercial Companies Law (Legislative Decree No. (21) of 2001), as well as in Article 61(d) of the CBB Law.

      Amended: January 2007

    • AA-1.5.5

      Article 217(c) prohibits an auditor from (i) being the chairman or a member of the Board of DirectorsG of the company he/she audits; (ii) holding any managerial position in the company he/she audits; and (iii) acquiring any shares in the company he/she audits, or selling any such shares he/she may already own, during the period of his audit. Furthermore, the auditor must not be a relative (up to the second degree) of a person assuming management or accounting duties in the company.

      Amended: January 2007

    • AA-1.5.6

      Article 61(d) prohibits an auditor from (i) being the chairman or a member of the Board of DirectorsG of the company he/she audits; (ii) acting as a managing director, agent or representative of the company concerned; and (iii) taking up any administrative work in the company, or supervising its accounts, or having a next of kin in such a position.

      Added: January 2007

    • AA-1.5.7

      The restriction in Paragraph AA-1.5.4 applies to overseas investment firm licenseesG as well as Bahraini investment firm licenseesG .

    • AA-1.5.8

      A partner, DirectorG or manager on the engagement team of auditing an investment firm licenseeG may not serve on the Board or in a controlled functionG of the licenseeG , for two years following the end of their involvement in the audit, without prior authorisation of the CBBG .

      Amended: January 2007

    • AA-1.5.9

      Chapter AU-1.2 sets out the CBB's "controlled functionsG " requirements.

      Amended: January 2007

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