Parliament passes urgent government-drafted bill tightening rules for external auditors

TDT | Manama

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An urgent government-drafted bill tightening Bahrain’s external audit rules was passed by Parliament yesterday, bringing tougher entry terms for auditors and a wider set of penalties for breaches.

The law amends Decree-Law No. 15 of 2021 and was pushed through on the fast track alongside Royal Decree No. 76 of 2025.

It also swaps the old disciplinary council for a new ‘Account Auditors Accountability Council’, expands quality checks on audit work and adds fresh duties on transparency for auditors who sign off accounts for listed firms and key public bodies.

Oversight

Minister of Industry and Commerce, His Excellency Abdulla bin Adel Fakhro, told MPs the law sits at the heart of the ministry’s corporate oversight, saying, “This law is one of the most important laws the ministry relies on for financial oversight of companies.”

He said the changes were meant to lift governance, open up clearer disclosure, and raise the standard of audit work in Bahrain.

Fakhro said the draft put before the chamber was not rushed together overnight.

“It came after many rounds that took more than three years of negotiation and consultation with all relevant bodies,” he said, adding that the talks covered the Central Bank of Bahrain, professional groups and both public and private bodies.

He said the government had put Bahrainisation front and centre, arguing that the profession should be led locally.

“This law gives the highest priority to Bahrainisation and protecting the auditing profession,” he told MPs.

During the debate, MP Dr Ali Al Nuaimi backed the bill in principle but questioned the route used to send it to the chamber under the Constitution’s urgency article, saying, “Article 87 is meant to avoid harm that can follow when deciding some laws is delayed.”

He also urged a clearer, more consistent yardstick across laws on when a profession is reserved for Bahrainis, and warned against giving too much of the detail over to later ministerial decisions.

Certificate

At the entry gate, the new text makes a valid professional accounting certificate a condition for registration as a practising external auditor, alongside conduct and experience tests.

It also adds extra terms for non-Bahrainis, including proof they remain fit to practise in the country where they last worked, and gives the minister wider scope to set rules on what counts as accepted experience, including work gained abroad.