BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



Location: Central Bank of Bahrain Volume 1—Conventional Banks > Part A > High Level Standards > AU Auditors and Accounting Standards > AU-1 Auditor Requirements > AU-1.5 Licensee/Auditor Restrictions > Other Relationships > AU-1.5.3
  • Other Relationships

    • AU-1.5.3

      Conventional bank licenseesG and their auditor 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 2011
      October 2007

    • AU-1.5.4

      Article 217(c) of the Commercial Companies Law 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. Article 61(d) of the CBB Law prohibits an auditorG 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 auditorG must not be a relative (up to the second degree) of a person assuming management or accounting duties in the company.

      Amended: October 2014
      October 07

    • AU-1.5.5

      The restrictions in Paragraph AU-1.5.3 apply to overseas conventional bank licenseesG as well as Bahraini conventional bank licenseesG .

      Amended: October 2011
      October 2007

    • AU-1.5.6

      A partner, DirectorG or manager on the engagement team of auditing a conventional bank 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 CBB.

      October 07

    • AU-1.5.7 [deleted]

      [This Guidance was deleted in January 2011].

Back to top