Manama:The Auditors Disciplinary Board at the Ministry of Industry and Commerce has enforced penalties against three auditors due to professional violations. The actions include a one-year suspension for one auditor, a BHD 10,000 fine for a second auditor, and a warning issued to a third auditor. These measures were taken in response to breaches of Legislative Decree No. (15) of 2021 concerning External Auditors, as amended by Law No. (7) of 2026.
According to Ministry of Industry and Commerce - Bahrain, the decisions were based on reports from the Ministry's Companies Control Directorate. These reports identified deficiencies in the audit procedures and financial statements of several companies. Violations noted included non-compliance with International Standards on Auditing and International Financial Reporting Standards, lack of sufficient supporting documentation in audit files, and the inclusion of inaccurate information in audit reports, which compromised the reliability of financial statements and the confidence in audit outcomes.
The Board's actions were taken following a directive from HE the Minister of Industry and Commerce, after reviewing the findings of these reports, which also highlighted other practices that compromised the integrity of the auditing profession.
The Ministry reaffirmed its dedication to enforcing legal and administrative measures against auditors who violate applicable laws and regulations. It emphasized its commitment to protecting citizens and stakeholders who rely on audited financial statements, thereby enhancing confidence and transparency in Bahrain's business environment.