The Financial Regulatgory Authority (FRA), chaired by Mohamed Farid, issued Resolution No. 174 and 175 of 2024 regarding the development of quality and behavioral rules for the work of auditors registered in the Authority’s records. This is within the framework of the Authority’s vision to develop and raising the efficiency of professionals working in the non-banking financial sector. It also aims to boost the efficiency and competitiveness of all professionals working in the sector, including auditors registered in the records.
According to a statement by the Authority, the rules stipulated in the two decisions will come into effect as of January 1, 2026, and include those working in the auditing activity in the non-banking financial sector, in addition to those working in companies listed on the stock exchange, insurance, real estate finance, financial leasing and factoring, consumer finance, microfinance, private insurance funds, and companies operating in the capital market, which are registered in the records of FRA.
Resolution No. 174 of 2024 regulates the quality control rules that auditors registered with the Authority must adhere to. This ensures that employees comply with professional rules, legal and regulatory requirements, and the appropriateness of reports issued by accounting offices, and supporting governance procedures in accounting offices.
The resolution included, but is not limited to, rules on implementing and adhering to relevant requirements, a statement of the quality control system, and the responsibilities of the office’s senior management towards the quality of assignments, accepting assignments, and maintaining relationships with clients.
As for Resolution No. 175 of 2024, regarding the ethics and behaviors that auditors registered with the Authority must adhere to, it regulates the ethics and behaviors of practicing auditing activity, in line with international rules and rules of professional conduct. It regulates, for example, adherence to the rules and behaviors of accounting and auditing practitioners, basic principles, and independence standards.
The two resolutions fall into the role assigned to FRA to supervise and control non-banking financial markets and instruments. They also provide the means and systems and issue rules that ensure the efficiency of these markets and the transparency of the activities practiced therein.
The development of accounting standards also falls into targeting integration with all international standards and the reform efforts adopted and implemented by the Egyptian government to enhance levels of growth and sustainable development.
Mohamed Farid, FRA Chairman, had previously indicated that Egyptian accounting standards help companies express their financial position and business results in a sound manner. This ultimately supports the soundness of their position in making sound financing and investment decisions.
He pointed out that the past period has witnessed a comprehensive development of the Egyptian accounting standards, starting with evaluating assets at fair value instead of book value, real estate investment, and property rights.
