Manama: His Majesty Hamad bin Isa Al Khalifa has ratified and issued Law (7) of 2026, which amends specific provisions of Decree-Law (15) of 2021 concerning external auditors, following approval from the Shura Council and the Council of Representatives.
According to Bahrain News Agency, the newly ratified law introduces amendments to the existing regulations governing external auditors in Bahrain. It outlines updated requirements for the registration and practice of auditing, establishing eligibility criteria for auditors, regulating the licensing of audit offices and companies, and setting procedures for the appointment and rotation of auditors. This legislation mandates compliance with international auditing standards and anti-money laundering and counter-terrorism financing regulations, aligning with the Central Bank of Bahrain's rules.
Additionally, the law enhances oversight and accountability by creating an Auditors Accountability Board to review violations and impose disciplinary actions. It also establishes mechanisms for quality review and performance evaluation of auditors, demands transparency reporting for auditors of listed companies and financial institutions, and empowers the ministry to issue regulations on professional standards, training, and regulatory procedures within the auditing profession.
The Prime Minister and relevant ministers are tasked with implementing the law's provisions, which will take effect the day after its publication in the Official Gazette.