Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
Fama Accounting Services, Office 2294, Building 574 Road 31 Block 611 Al Hamriya, Bahrain
In Bahrain’s dynamic business landscape, staying compliant with financial reporting standards isn’t just a best practice—it’s a legal necessity. Whether you’re a startup, SME, or a growing corporate entity, audited financial statements are essential for:
Regulatory compliance with authorities like MOICT and NBR
Building trust with banks, investors, and stakeholders
Ensuring your financial records reflect accuracy and transparency
A Financial Statement Audit serves as an independent verification of your company’s financial health. It examines whether your books, ledgers, and financial reports are:
Accurate and free from material misstatements
Prepared according to International Financial Reporting Standards (IFRS)
Compliant with Bahrain’s Commercial Companies Law
In this guide, we’ll break down why financial audits are crucial, which regulatory bodies require them, what’s covered in an audit, and how they protect your business from compliance risks and reputational damage.
A financial statement audit is an independent, objective examination of a company’s financial reports and supporting documentation by a licensed external auditor. The primary goal is to:
Verify the accuracy and fairness of the financial statements
Ensure compliance with applicable accounting standards (IFRS in Bahrain)
Detect and prevent errors, misstatements, or fraudulent activities
Provide assurance to external stakeholders regarding the company’s financial health
Unlike internal reviews or bookkeeping, a financial audit is conducted by a third-party audit firm, ensuring impartiality and credibility.
While both internal and external audits are crucial, they serve different purposes:
Internal Audits focus on evaluating internal controls, operational efficiency, and risk management processes. These are typically conducted by in-house teams or outsourced consultants to support management decision-making.
External (Statutory) Audits, on the other hand, are legally mandated for most businesses. They focus on providing assurance to external parties like regulators, banks, investors, and shareholders that the financial statements are accurate and reliable.
In Bahrain, statutory audits are a regulatory requirement, whereas internal audits are a business improvement tool. Both are important, but a statutory audit is essential for regulatory compliance.
According to Bahrain’s Commercial Companies Law, businesses registered under:
With Limited Liability (W.L.L.)
Bahraini Shareholding Companies (B.S.C.)
Partnerships (depending on structure)
are required to submit audited financial statements annually. These audits are crucial for:
Renewing Commercial Registrations (CR)
Maintaining good standing with regulatory authorities like MOICT and NBR
Facilitating access to business loans, credit facilities, and investor funding
Failure to conduct and submit audited financials can lead to:
Delays or suspensions in CR renewals
Penalties or fines from regulatory bodies
Reputational damage with banks and financial partners
Several key authorities in Bahrain mandate or require audited financial statements for compliance, approvals, and business transactions.
MOICT oversees corporate governance and compliance with the Commercial Companies Law. They require businesses to:
Maintain proper accounting records
Submit audited financial statements annually
Present these reports during CR renewals or structural amendments (such as capital increases, shareholder changes)
For larger companies and those involved in regulated industries, MOICT compliance is non-negotiable. Delayed or inaccurate submissions can result in fines or license revocations.
While NBR doesn’t mandate audits for VAT purposes, audited financial statements play a critical role in:
VAT audits conducted by NBR to verify VAT filings
Ensuring VAT records align with financial reports
Providing reconciliation data for input-output VAT claims
Businesses flagged for discrepancies in VAT returns often face deeper scrutiny, and having audited financials can significantly reduce the risk of penalties during NBR audits.
Whether you’re applying for a business loan, a line of credit, or even corporate banking services, financial institutions require:
Audited financial statements for at least the past two years
Detailed reports showing revenue, profitability, cash flow, and liabilities
Banks rely on audited reports to assess your creditworthiness and repayment capacity. Without them, securing financing becomes a challenge.
Investors, both local and international, demand transparency before committing capital. Audited financials provide:
An unbiased view of your company’s financial health
Assurance of accurate revenue reporting and expense management
Insights into financial stability and future scalability
For startups seeking Series A or B funding rounds, presenting audited reports is often a prerequisite for serious investor consideration.
An effective financial audit covers multiple components to ensure a 360-degree review of your company’s financial position.
The audit examines:
Physical verification of assets (inventory, equipment, cash balances)
Review of liabilities, including loans, payables, and provisions
Equity structure validation (shareholder capital, retained earnings)
Auditors cross-check these items against supporting documents, contracts, and reconciliations to ensure that the balance sheet presents a true and fair view.
The income statement is scrutinized to verify:
Correct revenue recognition practices (in line with IFRS)
Accuracy of expense classification (COGS, operational, administrative)
Treatment of non-recurring or extraordinary income and expenses
This ensures that your net profit or loss is accurately stated, free from material misstatements or manipulation.
Auditors review:
Cash inflows and outflows across operating, investing, and financing activities
Bank reconciliations to verify reported cash balances
Cash flow statements to assess liquidity and operational efficiency
Cash flow misstatements can mislead stakeholders about your business’s liquidity position, which is why auditors conduct thorough reconciliations.
Proper disclosures in notes to accounts are a critical aspect of financial statement preparation. Auditors ensure:
Significant accounting policies are disclosed
Contingent liabilities and commitments are reported
Related-party transactions are transparently declared
Compliance with IFRS (International Financial Reporting Standards) is a must in Bahrain, and auditors help ensure your financial reports meet these standards comprehensively.
Audits don’t just verify numbers—they often uncover hidden compliance gaps that could spell trouble if left unchecked.
Mistakes in:
Recognizing revenue before it’s actually earned (inflated earnings)
Misclassifying expenses (e.g., capitalizing operational costs)
Ignoring adjustments for discounts, returns, or provisions
These inaccuracies can lead to overstated profits or understated liabilities, resulting in regulatory penalties or investor mistrust.
Common VAT-related audit findings include:
Mismatches between financial statements and VAT returns
Missing input VAT invoices or incorrect VAT coding
Non-compliance with NBR’s invoicing standards
Such errors expose businesses to NBR audits, fines, and reputational damage.
Auditors often find:
Lack of segregation of duties in financial operations
Missing approval workflows for expense authorizations
Poor documentation for high-value transactions
Weak controls increase the risk of fraud, errors, and regulatory non-compliance.
Auditors require:
Invoices for all reported expenses
Contracts or agreements for significant revenue streams
Proof of asset ownership and valuation reports
Failure to provide these can result in audit qualifications, which hurt your credibility with banks, investors, and regulators.
In Bahrain, submitting audited financial statements is not optional—it’s a legal mandate for many business types. Non-compliance can result in:
Delays or denials in Commercial Registration (CR) renewals
Monetary penalties from MOICT or NBR
Business activity suspensions for repeat violations
A proper financial audit ensures your reports are compliant with regulatory formats, giving you peace of mind during filings, renewals, or random audits.
For businesses seeking financing or investment, audited financial statements act as a trust seal. They:
Assure banks of your creditworthiness
Provide investors with transparent insights into your profitability and cash flow
Enhance your chances of securing loans, credit facilities, or venture capital funding
An audit by a reputable firm like Famabh demonstrates that your business operates with integrity, accountability, and financial discipline.
Beyond external compliance, audits reveal:
Operational inefficiencies in financial processes
Areas where internal controls need tightening
Potential cost-saving opportunities through better expense management
This leads to improved internal governance, reduces risks of fraud, and prepares your business for scalable growth.
At Fama, we don’t follow a checklist approach. We assess:
Your industry-specific risks
Company size and transaction volumes
Regulatory exposure (LMRA, NBR, MOICT)
Our audit plans are tailored to focus on high-risk areas, ensuring efficiency and thoroughness.
Each sector has its unique challenges:
Retail: POS system reconciliations, inventory controls
Construction: Work-in-progress (WIP) accounting, project costing validations
Services: Revenue recognition, contract-based billing reviews
Our audit team understands these nuances and applies sector-specific testing procedures to ensure accuracy and compliance.
We provide audit reports in both:
Arabic, for submissions to MOICT, banks, and regulatory bodies
English, for internal management, investors, or international stakeholders
This dual-language approach ensures smooth communication and avoids misinterpretation of financial data.
Fama acts as your liaison with:
MOICT during CR renewals, shareholding changes, or capital amendments
NBR for VAT reconciliations and audit queries
We ensure that your audited reports meet the exact documentation formats required by these authorities, preventing submission rejections or compliance flags.
Initial discussion to understand your business structure and operations
Pre-audit checklist of documents needed (financials, invoices, contracts, bank statements)
Setting an audit timeline and deliverables schedule
Sample testing of transactions (sales, expenses, asset purchases)
Review of internal control processes and segregation of duties
VAT compliance checks and reconciliations
Bank and cash verification
Preparation of draft audit report highlighting key findings
Discussion with management on audit adjustments, if any
Recommendations for control improvements or process enhancements
Delivery of signed audit report compliant with MOICT standards
Bilingual reports (Arabic-English) for all stakeholders
Support for submissions to banks, investors, and regulatory authorities
Document gathering and planning: 1–2 weeks
Fieldwork and testing: 2–3 weeks (depending on business complexity)
Draft report and feedback session: 1 week
Final audit report issuance: Within 30–45 days from start
Urgent audits can be expedited based on client readiness and documentation availability.
Signed Audited Financial Statements (MOICT-approved format)
Audit Report with Auditor’s Opinion (Unqualified, Qualified, or Disclaimer)
Management Letter outlining findings and recommendations
Supporting schedules (trial balance, ledgers, VAT reconciliations)
Fama assists in:
Filing audited reports with MOICT during CR renewals or amendments
Submitting audit reports to banks or investors as part of financing requirements
Preparing documentation packages for NBR or LMRA audits (if applicable)
| Business Size | Price Range (BHD) | Inclusions |
|---|---|---|
| Micro Businesses (1–50 transactions) | 300–500 | Full statutory audit, MOICT-compliant reports |
| SMEs (51–300 transactions) | 600–900 | Audit + VAT compliance review + management letter |
| Large Enterprises / Multi-Branch | Custom Quote | Consolidated audits, sector-specific testing, bilingual reports |
We also offer:
Accounting + Audit bundled packages for ongoing clients
Discounted rates for startups and first-time audits
Clear, upfront pricing with no hidden charges
Not sure if your books are audit-ready? Don’t wait for CR renewal deadlines or investor requests to catch you off-guard. Schedule a free 30-minute consultation with Fama’s audit experts.
We’ll:
Review your current documentation status
Identify compliance gaps and potential risks
Provide a custom audit proposal with transparent timelines and costs
Ensure your business is audit-ready, compliant, and trustworthy in Bahrain’s competitive market.
Audits are mandatory for W.L.L, B.S.C companies, and partnerships depending on their structure. SMEs and startups may also require audits for CR renewals or when seeking financing.
Most audits take 30–45 days. Timely document availability can expedite the process.
Yes. Fama offers pre-audit readiness checks and document preparation support to ensure a smooth audit process.
While NBR doesn’t mandate audited reports for VAT, they are critical for reconciliations, audit defenses, and ensuring VAT return accuracy.
Absolutely. We prepare audit reports in both Arabic and English, tailored to MOICT and bank requirements.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
Below is an overview of our general pricing packages for our suite of services in Bahrain. Costs vary depending on factors such as the services we offer.
Read some reviews and success stories from our loyal customers who achieved their goals and how our expert solutions have made a lasting impact on their growth, compliance, and financial clarity. Your success is our greatest achievement!
Client
I am so happy to have chosen this company! Right from the start it was a very easy decision, I knew I am in the right hands. They contacted me with every update they had and always kept me up to date with all the information and steps that we will proceed next.
Client
Highly recommend for anyone looking to establish a company in Bahrain! Waqas Akram and his team made the entire process smooth and stress-free. They were incredibly knowledgeable, responsive, and handled every detail with professionalism.
Client
The team was highly professional, efficient, and knowledgeable. They ensured that all paperwork and procedures were handled smoothly, saving us both time and effort. I highly recommend their services to anyone looking out there.
Client
Abdullah and the team have been great in assisting me with related tasks. In challenging timeframes they've supported me to ensure our company operations can start in Bahrain without any issues. Thank you. I will recommed their services.
Client
I was extremely impressed with their services. Their expertise made everything smooth and hassle-free. I highly recommend Setup in Bahrain for anyone looking for their business here. Their professionalism and commitment to customer satisfaction are top-notch.
With years of experience and a highly qualified team, we bring unmatched expertise and in-depth knowledge of Bahrain’s financial landscape to every service we provide.
Choosing the right audit partner is not just a compliance decision — it’s a strategic one. Our firm is trusted by businesses across Bahrain because we deliver more than just reports; we deliver value. We combine deep local knowledge, international audit practices, and a commitment to personalized service. With each engagement, we focus on clarity, accuracy, and strategic insight, helping you turn regulatory obligations into business advantages.
We’re based in Bahrain, with a team that understands the intricacies of the local regulatory landscape, including NBR, MOIC, and CBB requirements. At the same time, we follow international standards such as IFRS and ISA, making our reports credible not only in Bahrain but across international markets. Whether you’re a startup, family business, or a multinational branch, we speak your language — both culturally and financially.
One of the main reasons businesses engage in external audits in Bahrain is for Commercial Registration (CR) renewal and loan or investment applications. Our reports are formatted and signed according to MOIC standards and accepted by banks and government entities. We ensure your financials are presentable, defendable, and submission-ready — saving you time, money, and back-and-forth headaches.
Your audit is conducted by highly qualified, licensed professionals with certifications such as CPA, ACCA, CIA, CMA, and relevant MOIC registration. This isn’t just about ticking boxes — it ensures your audit is legally valid, technically sound, and professionally defensible. Every report is reviewed through a quality assurance process before delivery.
We understand that time is often of the essence, especially when audits are required for CR renewal or funding rounds. Our audit teams are efficiently structured, with clear timelines, digital collaboration tools, and a client dashboard for real-time progress updates. Fast delivery does not mean shortcuts — we maintain audit integrity at every stage while honoring your deadlines.
Our audit services span across dozens of industries in Bahrain — from logistics and healthcare to fintech, hospitality, education, and real estate. We bring industry-specific knowledge to every engagement, understanding the nuances of each sector’s operational and regulatory challenges. This ensures our audit approach is relevant, tailored, and impactful for your business.
We don’t just audit and walk away. Post-audit, we provide hands-on support for any rectifications needed, help you submit to relevant authorities, and guide you on how to improve controls, accounting systems, and VAT compliance. Our end-to-end audit service ensures that you’re not left in the dark once the report is delivered.
Auditing involves handling sensitive financial and operational data. We are committed to total confidentiality, and our systems are secured through encrypted document storage, limited-access file sharing, and strict non-disclosure protocols. You can be confident that your information is safe with us.
We believe in clear, upfront pricing without hidden charges. Whether you’re a startup needing your first audit or a complex group with multiple subsidiaries, we offer fair rates and customized packages that align with your needs and budget. Value-driven service is part of our audit philosophy.
Many of our audit clients stay with us for years — not just for audits, but for ongoing accounting, VAT, advisory, and compliance services. We build long-term relationships based on trust, responsiveness, and results. As your business grows, we scale with you — helping you stay compliant, confident, and ready for every financial milestone.
Our external audit process is designed to be seamless, structured, and stress-free for your business. From the first consultation to the final signed report, we follow a transparent and proven methodology that ensures accuracy, accountability, and complete compliance.
We begin with a discovery session, where we understand your business structure, financial year, operational complexity, and industry-specific audit requirements. Based on this, we build a customized audit plan outlining timelines, required documents, and reporting goals.
Our audit team then conducts fieldwork and testing — either remotely or on-site — by analyzing your financial records, general ledger, VAT returns, and compliance documentation. We use advanced tools to cross-verify transactions, evaluate internal controls, and flag inconsistencies.
Before finalization, we present a draft report to your management team for discussion and clarification. Once all revisions are incorporated, we issue your official signed audit report, ready for submission to banks, investors, the MOIC, or CBB.
Throughout the process, you’ll have access to a dedicated audit coordinator and real-time status updates. We ensure you feel informed, prepared, and supported — every step of the way.
Over the years, we’ve earned the trust of businesses in Bahrain by consistently delivering audits that are precise, punctual, and practical.
✅ Reputation for integrity: Our firm operates with full independence, which means our reports carry weight with banks, investors, and regulators.
✅ Client-first approach: We’re known for being approachable, responsive, and easy to work with. Our clients value our professional communication and fast turnaround.
✅ Bahrain regulatory expertise: From MOIC filing formats to NBR expectations, our auditors are fully versed in local frameworks.
✅ Proven track record: We’ve successfully completed audits for hundreds of companies — including startups, family-owned enterprises, and international branches.
✅ Comprehensive support: From audit readiness checks to post-report implementation, we stand by our clients beyond just report delivery.
Our focus is not just on issuing a report — it’s on protecting your business, strengthening your credibility, and ensuring you’re always a step ahead.
Compliance is not optional — it’s foundational. In Bahrain’s evolving regulatory environment, staying compliant with financial laws is essential for license renewals, bank relationships, investor confidence, and public trust.
We ensure that your business meets all key regulatory obligations, including:
Commercial Registration (CR) renewal audits mandated by the Ministry of Industry and Commerce
Bahrain VAT compliance audits and alignment with NBR documentation requirements
Central Bank of Bahrain (CBB) audit guidelines for financial institutions and licensed entities
Adherence to IFRS and IAS audit standards, accepted locally and internationally
Proper documentation for intercompany transactions, foreign investments, and capital structures
Audit trail support for anti-money laundering (AML) and due diligence
With us as your audit partner, you don’t just meet the minimum — you gain peace of mind that your business is operating within the full scope of Bahrain’s legal and financial framework.
Minimize risks and maximize growth with our comprehensive accounting solutions in Bahrain.
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With a reputation for precision, and excellence, we are here to support your business growth while ensuring compliance with Bahrain’s financial and regulatory standards.
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Accounting, VAT, & Audit Services by famabh