Loan and Financing Portfolios review is an assurance service provided by an independent auditor. It involves examining and reviewing all consumer and installment loans/financing facilities, offered by banks, investment companies, and financing companies licensed by the Central Bank of Kuwait. The purpose is to verify their compliance with the rules and regulations for extension of personal loans for consumer and housing purposes, and the issuance of credit cards, as outlined in the Instructions dated 11 November 2018, and related circulars.
What is the mandate for reviewing loans and financing portfolios?
The Central Bank of Kuwait’s instructions require banks, investment companies, and finance companies to engage an audit firm to carry out reviews and checks of all consumer and installment loans/financing extended by them on an ongoing and quarterly basis.
What is the deadline for submitting the assurance report on review findings to Central Bank of Kuwait?
Central Bank of Kuwait Circular dated 14 February 2018 sets forth that the auditor’s assurance report on the review findings shall be submitted no later than 45 days from the end of the reporting period.
What are the conditions for audit firm engagement?
- The audit firm engaged to conduct the review shall be rotated every two years.
- The new audit firm shall not be from among the current external auditors of the bank/ the company or the auditor engaged to conduct the internal control review (ICR).
What legislation and international standards does the independent auditor adopt in preparing the Loan and Financing Portfolios Review Report?
- Central Bank of Kuwait legislation and regulations
- International Standards on Auditing (ISA)
What is the added value to business entities from Loans & Financing Portfolios Review?
- Comply with laws, regulations, resolutions, and instructions issued by the Central Bank of Kuwait.
- Promote the stakeholders’ confidence.
What are the services offered by Baker Tilly Kuwait?
Quarterly assurance report on the review findings of consumer and installment loans/ financing portfolios
Why Baker Tilly?
- Baker Tilly in Kuwait is a member of Baker Tilly International network based in the UK, ranked amongst the top 10 global accounting networks.
- Auditors in Baker Tilly Kuwait are licensed by Ministry of Commerce and Industry and are registered with the regulatory authorities, e.g., Central Bank of Kuwait, Capital Markets Authority and Insurance Regulatory Unit.
- Extensive experience in providing assurance services to companies operating across various business sectors in the State of Kuwait.
- Highly experienced bilingual team with specialized academic qualifications and professional certifications.
- Commitment to performing assurance engagements according to predefined timelines, with no delays and responsiveness to client requirements.