Regulatory Alerts2013-08-14
Internal Audit Requirements for Certain Lebanese Joint-Stock Companies
The Capital Markets Authority of Lebanon mandates that selected joint-stock companies establish an independent internal audit department to ensure objective risk management and operational oversight. The regulation applies to listed or OTC companies with over twenty shareholders and revenues exceeding thirty billion Lebanese pounds, requiring them to appoint a qualified department head, conduct audits within a two-year cycle, and submit semi-annual reports to the board of directors. Companies may outsource audit functions or maintain shared departments with parent entities, must designate external auditors based on their revenue category, and face administrative penalties if they fail to comply within the stipulated one-year deadline.
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