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  • AU-1.1 Appointment of Auditor

    • AU-1.1.1

      Islamic bank licensees must obtain prior written approval from the CBB before appointing or re-appointing their auditor.

      Amended: January 2011
      October 07

    • AU-1.1.1A

      When seeking the CBB's approval for the appointment or re-appointment of the external auditor, the request for approval should specify the name of the audit firm, the name of the responsible partner, as well as the year which the responsible partner was initially appointed by the Islamic bank licensee.

      Added: July 2014

    • AU-1.1.2

      As the appointment of auditors normally takes place during the course of the firm's annual general meeting, Islamic bank licensees should notify the CBB of the proposed agenda for the annual general meeting in advance of it being circulated to shareholders. The CBB's approval of the proposed auditor does not limit in any way shareholders' rights to subsequently reject the Board's choice.

      Amended: January 2011
      October 07

    • AU-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 auditing Islamic bank 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 07

    • AU-1.1.4

      In the case of overseas Islamic bank licensees, the CBB will also take into account who acts as the auditor of the parent firm. As a general rule, the CBB does not favour different parts of a banking firm or group having a different auditor.

      Amended: January 2011
      October 07

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