Regulatory Alerts2010-03-16
Instructions Concerning External Auditors for Islamic Banks
The Central Bank of Kuwait issued these instructions to establish mandatory guideline criteria for approving the appointment of external auditors by Islamic banks. The regulations require nominated firms to demonstrate international affiliation, banking audit experience, qualified personnel, and adequate training, while mandating advance Central Bank approval before the general assembly finalizes appointments. Furthermore, the guidelines enforce auditor independence by prohibiting the evaluation of internal control systems and restricting conflicting technical or accounting advisory services to economically interrelated entities.
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