Egyptian Society of Accountants & Auditors

The Financial Regulatory Authority (FRA), established under Law No. 10 of 2009, is responsible for operating the quality assurance (QA) review system for auditors of listed entities and non-banking financial institutions. Accordingly, the Egyptian Society of Accountants and Auditors (ESAA) does not have direct legal responsibility for establishing or operating the jurisdictional QA review system.

Within the scope of its mandate, ESAA continues to support the advancement of quality assurance practices in the jurisdiction through its best endeavors. ESAA engages with the Financial Regulatory Authority, the Ministry of Finance, and the Syndicate of Commerce – Accountants and Auditors (SOC) to promote alignment with Statement of Membership Obligation 1 (SMO 1) requirements and to advocate for the extension of QA reviews to all mandatory audits.

ESAA has also provided technical support to the Financial Regulatory Authority’s oversight arrangements through training, workshops, checklists, and other implementation support for firms and auditors subject to review. In addition, ESAA continues to support the profession through workshops and training activities relating to updated auditing and quality management standards.

ESAA has also indicated that it is considering enhancements to its internal quality assurance support arrangements for members performing audits of non-listed entities, including potential voluntary review mechanisms and strengthened monitoring processes.

Given that ESAA maintains ongoing support activities within the scope of its authority, but further strengthening and clearer implementation milestones are needed to demonstrate full alignment with SMO 1 best practices, ESAA is assessed as Review & Improve.

ESAA should focus on strengthening its support for alignment with SMO 1 requirements by updating its Action Plan with clear milestones and timelines, continuing its engagement with the Financial Regulatory Authority and the Syndicate of Commerce – Accountants and Auditors, and advancing practical mechanisms to support quality assurance coverage for audits of non-listed entities.

Current Status: Review & Improve

Under Accounting Practice Law No. 133 of 1951, the entry requirements for professional accountants and auditors in Egypt are established at the jurisdictional level through the Ministry of Finance (MoF) and the Syndicate of Commerce – Accountants and Auditors (SOC). These requirements include a university degree in accounting and practical experience; however, the jurisdictional framework does not require a qualifying examination or continuing professional development for all professional accountants and therefore does not fully align with the latest International Education Standards (IES).

The Egyptian Society of Accountants and Auditors (ESAA) is a voluntary professional accountancy organization and is therefore responsible for establishing educational and training requirements for its members only. Within this scope, ESAA maintains established initial professional development and continuing professional development processes, including a professional examination route, practical experience requirements, and mandatory continuing professional development of 120 hours over a three-year period, with compliance monitoring and disciplinary consequences for non-compliance.

ESAA continues to review and update its educational requirements and curriculum to maintain alignment with the IES and supports implementation through its professional academy and ongoing training activities. Its cooperation arrangements with Association of Chartered Certified Accountants further support qualification pathways and professional development opportunities for members.

In addition, ESAA continues to promote incorporation of the IES requirements within the wider jurisdiction, including engagement with universities, academic institutions, and government stakeholders to support broader alignment of national education requirements with the latest IES.

Given that ESAA maintains well-established processes for its members while continued improvements are needed to support broader jurisdictional alignment with the latest IES requirements, ESAA is assessed as Review & Improve.

ESAA should continue to focus on supporting full alignment with the latest IES requirements, including competency-based learning outcomes, information and communications technology competencies, and professional skepticism requirements, while strengthening its engagement with government and academic stakeholders to support jurisdiction-wide adoption.

Current Status: Review & Improve

The Egyptian Society of Accountants and Auditors (ESAA) does not have direct legal authority to adopt auditing standards in Egypt. Responsibility for issuing the Egyptian Standards on Auditing, Review and Other Assurance Services (ESAROAS) rests with the Minister of Investment and International Cooperation (MoI).

Within the scope of its mandate, ESAA maintains a Standards Committee that continuously monitors standards and pronouncements issued by the International Auditing and Assurance Standards Board (IAASB) and develops technical recommendations to support revisions to the ESAROAS.

ESAA continues to use its best endeavors to promote convergence with the latest International Standards on Auditing (ISA) and has reported that it is engaged in drafting updated Egyptian standards aligned with the latest IAASB pronouncements. ESAA also supports implementation through ongoing technical training delivered through its accountancy training center, dissemination of exposure drafts, and publication of technical articles and updates for members.

Although Egypt’s jurisdictional adoption status remains Not Adopted, ESAA maintains ongoing processes to support convergence and implementation within the scope of its authority. Accordingly, ESAA is assessed as Review & Improve.

ESAA should continue prioritizing its advocacy and technical support for the formal adoption of the latest ISA for all mandatory audits in the jurisdiction and support timely convergence with current and future IAASB standards, including new and revised auditing and reporting standards.

Current Status: Review & Improve

Ethical requirements for professional accountants in Egypt are established primarily by the Syndicate of Commerce – Accountants and Auditors (SOC) and, for auditors subject to regulatory oversight, the Financial Regulatory Authority (FRA). ESAA does not have direct authority to establish jurisdiction-wide ethical requirements applicable to all professional accountants.

Within the scope of its mandate, the Egyptian Society of Accountants and Auditors (ESAA) maintains ongoing processes to support alignment with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

ESAA’s Standards Committee monitors developments to the IESBA Code, reviews differences between the existing Egyptian ethical requirements and the latest international requirements, and continues to advocate for updates to the codes maintained by the SOC, the Ministry of Finance (MoF), and the Financial Regulatory Authority (FRA).

To support implementation, ESAA disseminates ethical guidance and updates through its website, publications, and magazine, and provides ongoing education and training to members, including awareness of sanctions for non-compliance with professional and ethical requirements. ESAA also reports that it is in the process of finalizing revisions to its own code of ethics to align with the latest IESBA Code requirements.

Given that ESAA maintains ongoing support, advocacy, and member education processes within the scope of its authority, while continued work is required to support jurisdiction-wide alignment with the latest IESBA Code, ESAA is assessed as Review & Improve.

ESAA should continue prioritizing support for alignment with the latest IESBA Code requirements by finalizing its updated code of ethics, strengthening member training and continuing professional development coverage of ethical requirements, and intensifying advocacy with the SOC, the Ministry of Finance, and the Financial Regulatory Authority to promote jurisdiction-wide adoption.

Current Status: Review & Improve

The Ministry of Finance (MoF) is responsible for establishing public sector accounting requirements in Egypt. Public sector financial reporting currently remains based on national cash-basis accounting standards, and International Public Sector Accounting Standards (IPSAS) have not been adopted at the jurisdiction level.

The Egyptian Society of Accountants and Auditors (ESAA) does not have direct authority over public sector accounting standard-setting. Within the scope of its mandate, ESAA continues to use its best endeavors to promote awareness and adoption of IPSAS in Egypt.

ESAA has maintained ongoing support activities in this area, including engagement with the Ministry of Finance, awareness-raising initiatives, dissemination of updates and developments issued by the International Public Sector Accounting Standards Board (IPSASB), submission of comments on exposure drafts, and delivery of technical training and conference sessions covering IPSAS-related topics.

ESAA has also indicated that it will continue to identify opportunities to engage with relevant stakeholders and promote awareness of IPSAS and stands ready to provide technical support, awareness building, and training should the Ministry of Finance initiate plans toward IPSAS adoption.

Given the nature of its mandate and its continued ongoing efforts to promote international best practice in public sector reporting, ESAA is assessed as Sustain.

Current Status: Sustain

Investigative and disciplinary (I&D) requirements in Egypt are established through a shared framework involving the Syndicate of Commerce – Accountants and Auditors (SOC), the Financial Regulatory Authority (FRA), and the Egyptian Society of Accountants and Auditors (ESAA).

The SOC maintains an I&D system applicable to professional accountants and auditors registered through the Ministry of Finance (MoF). In addition, auditors subject to oversight by the Financial Regulatory Authority (FRA) are also subject to the investigative and disciplinary mechanisms established by that authority. Available information indicates that both frameworks do not yet fully incorporate all the requirements of Statement of Membership Obligation 6 (SMO 6).

Within the scope of its own authority, ESAA maintains an Investigation and Discipline Committee for its members and continues to communicate the consequences of misconduct and non-compliance through its website, training programs, and professional publications.

ESAA has actively undertaken measures to strengthen its internal I&D framework. Following its self-assessment against SMO 6 requirements, ESAA identified specific gaps, including transparency of misconduct categories, linkage with quality assurance findings, committee composition, the range of sanctions, and public disclosure of outcomes. In response, ESAA has been executing amendments to its by-laws and disciplinary framework, including development of an expanded sanctions regime and revised procedures aligned with SMO 6 best practices.

ESAA also continues to engage with the Syndicate of Commerce – Accountants and Auditors and the Financial Regulatory Authority to promote alignment of their respective I&D systems with international best practice.

Given that ESAA is actively implementing measures to address identified gaps in its own system and continues to support strengthening of the broader jurisdictional framework, ESAA is assessed as Execute.

ESAA should prioritize completion and formal approval of its by-law amendments, strengthen the linkage between quality assurance findings and disciplinary procedures, expand transparency of sanctions and outcomes, and continue supporting the Financial Regulatory Authority and the Syndicate of Commerce – Accountants and Auditors in aligning their frameworks with SMO 6 requirements.

Current Status: Execute

The Minister of Investment and International Cooperation (MoI) is the recognized accounting standard-setter in Egypt and is responsible for issuing the Egyptian Accounting Standards (EAS). Through Decision No. 69 of 2019, the Minister issued revised EAS, which were subsequently updated in 2023.

The Egyptian Society of Accountants and Auditors (ESAA) does not have direct authority to adopt accounting standards at the jurisdiction level. Within the scope of its mandate, ESAA plays an active role in supporting convergence with International Financial Reporting Standards (IFRS) Accounting Standards through its Standards Committee, which monitors developments issued by the International Accounting Standards Board (IASB) and communicates proposed updates and technical recommendations to the Ministry.

ESAA continues to support implementation through ongoing technical training on the EAS, seminars on IFRS and IASB pronouncements, integration of standards into its examination framework, and dissemination of technical articles and updates through its professional publications. ESAA also offers an IFRS Diploma and related preparation courses for members.

In addition, ESAA participates in the international standard-setting process through submission of comments and responses to IASB consultations and surveys.

Given that ESAA maintains active and ongoing support and advocacy processes within the scope of its authority, while continued efforts are needed to support broader alignment with the latest IFRS requirements at the jurisdiction level, ESAA is assessed as Review & Improve.

ESAA should continue strengthening its advocacy with the Ministry and other regulators to support convergence of the EAS with the latest IFRS Accounting Standards, expand implementation support materials for members, and continue promoting consideration of internationally aligned frameworks for small and medium-sized entities.

Current Status: Review & Improve