Egypt

The financial reporting framework in Egypt is established primarily by the Companies Law No. 159 of 1981 and the Capital Market Law No. 95 of 1992. The Companies Law governs joint stock companies, partnerships limited by shares, and limited liability companies, while the Capital Market Law governs listed entities and other entities operating in the securities market.

For accounting, the Minister of Investment has the authority to issue financial reporting standards through ministerial decrees published in the Egyptian Gazette. In 2023, Prime Minister Decree No. 2115 established a multi-stakeholder standard-setting committee for accounting and auditing standards to develop and review national standards and submit recommendations to the Minister of Investment.

Egypt has not adopted International Financial Reporting Standards (IFRS) Accounting Standards as issued by the International Accounting Standards Board. Instead, entities apply Egyptian Accounting Standards (EAS), which are based on IFRS Accounting Standards but are not identical or as comprehensive. Ministerial Decision No. 69 of 2019 amended the EAS and introduced standards aligned with International Financial Reporting Standard 9 Financial Instruments, International Financial Reporting Standard 15 Revenue from Contracts with Customers, and International Financial Reporting Standard 16 Leases. Further amendments were introduced in 2023, including Egyptian Accounting Standard 50 on insurance contracts, which is based on International Financial Reporting Standard 17 Insurance Contracts and became effective for accounting periods beginning on or after 1 July 2024.

The EAS are applied by public interest entities, including listed companies, public subscription companies, securities companies, and investment funds established by banks and insurance companies. In addition, the Central Bank of Egypt issues a separate accounting framework for the banking sector. Egypt has not adopted the International Financial Reporting Standard for Small and Medium-sized Entities. Instead, the EAS include specific reporting requirements for small and medium-sized entities.

For auditing, the Companies Law and the Capital Market Law require annual audits for companies subject to statutory audit requirements. The Minister of Investment is also the auditing standard-setter and, through Decision No. 166 of 2008, adopted the Egyptian Standards on Auditing, Review and Other Assurance Services (ESAROAS). The ESAROAS were developed based on the International Standards on Auditing (ISA); however, available information indicates that they remain aligned with the 2015 version of ISA and have not yet been updated to reflect the latest standards in effect at the time of this assessment.

The accountancy profession in Egypt is regulated under Accounting Practice Law No. 133 of 1951, as amended, together with sector-specific legislation applicable to listed entities, non-banking financial institutions, and banking institutions. The regulatory framework is shared among the Ministry of Finance (MoF), the Financial Regulatory Authority (FRA), the Central Bank of Egypt (CBE), the Syndicate of Commerce – Accountants and Auditors (SOC), and the Egyptian Society of Accountants and Auditors (ESAA).

For professional accountants and auditors serving non-listed entities, individuals must be registered in the general register maintained by the Ministry of Finance in order to practice public accountancy or statutory audit. Registration requires a university degree in accounting and membership in the Syndicate of Commerce – Accountants and Auditors (SOC), which is mandatory for public practice. The SOC was established under Law No. 4 of 1972 and is responsible for maintaining professional registries, issuing ethical requirements, and operating an investigative and disciplinary framework for accountants and auditors registered through the Ministry of Finance.

The Ministry of Finance register distinguishes between different levels of auditors. Upon initial registration, an individual may be entered as a trainee auditor. After three years of practical experience, the individual may apply to be registered as an auditor, with authority to audit entities other than joint stock corporations. After an additional five years of experience, the individual may be registered as a full auditor, which permits the audit of joint stock companies and other corporations. At present, the statutory requirements do not include a mandatory professional examination or continuing professional development requirement for Ministry of Finance registration.

For listed companies and non-banking financial institutions, auditors are additionally regulated by the Financial Regulatory Authority (FRA), established under Law No. 10 of 2009. The FRA, previously known as the Egyptian Financial Supervisory Authority, maintains the register of auditors authorized to audit listed entities and non-banking financial institutions. Its responsibilities include licensing and registration, quality assurance review, investigative and disciplinary procedures, ethical requirements, and continuing professional development obligations for registered auditors.

The Egyptian Society of Accountants and Auditors (ESAA) is a voluntary professional accountancy organization established by Royal Decree in 1946 and subsequently recognized under ministerial resolution. ESAA sets initial and continuing professional development requirements for its members, maintains an investigative and disciplinary system, and contributes technical input on national accounting and auditing standards. Membership comprises professional accountants, auditors, and students. Entry to membership requires either completion of the ESAA professional examinations and practical experience requirements, membership in an approved foreign professional body, or a doctoral degree in accounting together with relevant experience.

Auditors of banking institutions are subject to additional requirements established by the Central Bank of Egypt (CBE). To be included in the CBE auditor registry, practitioners must also be registered with the Ministry of Finance and meet enhanced experience requirements applicable to bank audits.

There is no single independent audit oversight authority in Egypt with jurisdiction over all statutory auditors. Instead, audit oversight arrangements are shared among several public authorities depending on the type of entity being audited.

For auditors of listed entities and non-banking financial institutions, oversight responsibilities rest with the Financial Regulatory Authority (FRA), established under Law No. 10 of 2009. The FRA supervises and regulates non-banking financial markets and instruments, including the capital market and insurance activities, and is the competent authority for entities operating in those sectors. Within that framework, auditors of listed entities and non-banking financial institutions are subject to FRA registration and oversight requirements.

For auditors of other companies, oversight continues to rest primarily with the Ministry of Finance (MoF) through its registration system for practicing accountants and auditors. Registration with the Ministry of Finance remains the basis for public practice rights in Egypt, and the Syndicate of Commerce – Accountants and Auditors (SOC) also has regulatory responsibilities in relation to ethics and investigative and disciplinary matters for those registered through that framework.

For auditors of banks, additional oversight requirements are established by the Central Bank of Egypt (CBE). Under Banking Law No. 194 of 2020, banks must appoint external auditors from the registry approved by the Central Bank, and those auditors are required to report in accordance with Egyptian auditing standards and Central Bank procedures.

Accordingly, audit oversight in Egypt is best characterized as a fragmented public regulatory framework rather than a unified independent audit oversight system. Oversight is exercised by the Ministry of Finance for the general profession, the Financial Regulatory Authority for listed entities and non-banking financial institutions, and the Central Bank of Egypt for banks.

Egyptian Society of Accountants and Auditors (ESAA)

The Egyptian Society of Accountants and Auditors (ESAA) is a voluntary professional accountancy organization established by Royal Decree in 1946 and subsequently granted statutory recognition through Ministerial Order No. 2280 and Resolution No. 554 of 2007. ESAA is recognized as the principal professional body representing professional accountants and auditors in Egypt on a voluntary membership basis. Its membership includes professional accountants, auditors, and students.

ESAA’s responsibilities include establishing initial professional development and continuing professional development requirements for its members, maintaining an investigative and disciplinary system, supporting implementation of applicable ethical requirements for members registered with the Financial Regulatory Authority (FRA), and providing technical recommendations on revisions to the Egyptian Accounting Standards (EAS) and the Egyptian Standards on Auditing, Review and Other Assurance Services (ESAROAS) to the relevant authorities. ESAA also plays an important role in supporting professional competence through technical guidance, examinations, and training activities.

In addition to being a member of IFAC, ESAA is also a member of the Federation of Mediterranean Certified Accountants.

Syndicate of Commerce—Accountants and Auditing (SOC)

The Syndicate of Commerce – Accountants and Auditors (SOC) was established under Law No. 4 of 1972. Membership in SOC is mandatory for professional accountants and auditors seeking registration with the Ministry of Finance (MoF) and public practice rights in Egypt. SOC generally grants membership certificates to individuals who have completed a recognized university accounting education program and serves as a statutory professional body within the national regulatory framework.

Its responsibilities include maintaining the national registries of professional accountants and auditors, issuing ethical and professional conduct requirements applicable to its members, and operating an investigative and disciplinary system for accountants and auditors registered through the Ministry of Finance. SOC is not a member of IFAC.

Law No. 10 of 2009 empowers the Financial Regulatory Authority to establish a quality assurance review system for auditors registered to audit listed entities and non-banking financial institutions. The Financial Regulatory Authority has established oversight arrangements for these auditors, including an Audit Quality Control Unit and related review and oversight mechanisms. In 2024, the Financial Regulatory Authority also issued decrees aimed at enhancing quality and conduct standards for registered auditors.

However, not all mandatory audits in Egypt are subject to quality assurance review. The system applies primarily to auditors of listed entities and non-banking financial institutions, while audits of other entities are not subject to a comprehensive jurisdiction-wide quality assurance review system. Accordingly, the quality assurance framework does not yet meet the requirements of Statement of Membership Obligation 1 for all mandatory audits.

Although the Egyptian Society of Accountants and Auditors has reported that International Standard on Quality Management (ISQM) 1 and 2 were to be applied effective 2025, currently available official sources do not clearly confirm that both standards have been formally adopted and are effective at the jurisdiction level. Official government reporting issued in November 2025 indicates that a new Egyptian auditing framework, including a quality control standard, will replace the 2008 framework with effect from 1 January 2027. On that basis, adoption of the latest international quality management standards cannot yet be considered clearly established for purposes of this assessment.

Current Status: Partially Adopted

Entry requirements for professional accountants and auditors in Egypt are established through a shared framework involving the Ministry of Finance (MoF), the Financial Regulatory Authority (FRA), the Egyptian Society of Accountants and Auditors (ESAA), and the Central Bank of Egypt (CBE) for bank auditors.

To be registered with the Ministry of Finance and obtain public practice rights, individuals are required to hold a university degree in accounting, maintain membership in the Syndicate of Commerce – Accountants and Auditors (SOC), and satisfy the practical experience requirements set out under Accounting Practice Law No. 133 of 1951. The law requires three years of experience to progress from trainee auditor to auditor status and an additional five years to qualify as a full auditor. However, this route does not require a professional examination, structured competency-based assessment, or mandatory continuing professional development for all professional accountants.

For auditors of listed entities and non-banking financial institutions, additional requirements are established by the Financial Regulatory Authority (FRA), including annual continuing professional development obligations and registration in the FRA auditor registry.

The Egyptian Society of Accountants and Auditors (ESAA) maintains more comprehensive professional education requirements for its members. Membership requires completion of a university degree, at least three years of practical training, successful completion of the ESAA’s professional examinations, and compliance with mandatory continuing professional development requirements of 120 hours over a three-year period. ESAA also monitors compliance with these continuing professional development requirements.

Additional educational and experience requirements apply to auditors of banking institutions through the Central Bank of Egypt (CBE).

Notwithstanding these arrangements, the educational requirements are not consistently applied to all aspiring and professional accountants in the jurisdiction and do not demonstrably meet all the requirements of the International Education Standards in effect as of the time of the assessment, particularly in relation to learning outcomes, final assessments, and continuing professional development for the entire profession. Accordingly, the jurisdiction continues to be assessed as Partially Adopted.

Current Status: Partially Adopted

In accordance with the Companies Law No. 159 of 1981 and the Capital Market Law No. 95 of 1992, companies subject to statutory audit requirements are required to prepare annual audited financial statements.

The Minister of Investment and International Cooperation (MoI) is the recognized auditing standard-setter in Egypt. Through Decision No. 166 of 2008, the Minister adopted the Egyptian Standards on Auditing, Review and Other Assurance Services (ESAROAS) as the applicable national auditing standards.

According to the Egyptian Society of Accountants and Auditors (ESAA) and the current jurisdiction-level information available, the ESAROAS remain aligned with the 2015 version of the International Standards on Auditing (ISA) and have not yet been updated to reflect the currently effective International Auditing and Assurance Standards Board Handbook, including more recent revisions and standards such as the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

In accordance with the 2026 adoption definitions, adoption of a pre-2018 version of ISA is assessed as Not Adopted. As the standards currently in force in Egypt are based on the 2015 version of ISA, the jurisdiction is therefore assessed as Not Adopted.

Current Status: Not Adopted

The ethical requirements applicable to professional accountants and auditors in Egypt are established through multiple bodies depending on the segment of the profession.

For professional accountants and auditors registered through the Syndicate of Commerce – Accountants and Auditors (SOC), ethical requirements are established through the national code issued by the Syndicate. Available authoritative sources indicate that these requirements are not based on the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

For auditors of listed entities and non-banking financial institutions, Law No. 10 of 2009 empowers the Financial Regulatory Authority (FRA), formerly the Egyptian Financial Supervisory Authority, to establish ethical requirements. The FRA adopted the Egyptian Code of Ethics (ECE) through Decision No. 79 of 2007, which is reported to be aligned with the 2006 version of the IESBA Code.

The Egyptian Society of Accountants and Auditors (ESAA) has indicated that the Egyptian Code of Ethics has not yet been updated to align with the most recent version of the IESBA Code. While ESAA’s 2024 SMO Action Plan notes that work is underway to align its code with the latest international requirements, there is no authoritative evidence that the 2025 Handbook of the International Code of Ethics for Professional Accountants has been formally adopted and made effective at the jurisdiction level as of the date of this assessment.

In accordance with the 2026 adoption definitions, adoption of a pre-2018 version of the Code is assessed as Not Adopted. As the only formally identified international alignment remains based on the 2006 version, the jurisdiction continues to be assessed as Not Adopted.

Current Status: Not Adopted

The Ministry of Finance (MoF) is responsible for establishing public sector accounting requirements in Egypt.

At present, public sector financial reporting in Egypt is based on national cash-basis accounting standards and government financial management rules, including the framework established under the Unified Public Finance Law and related Ministry of Finance regulations. There is no evidence that accrual-basis International Public Sector Accounting Standards (IPSAS) or cash-basis IPSAS have been formally adopted for application by public sector entities.

The Egyptian Society of Accountants and Auditors (ESAA) reports that there is no established timeline or active plan to adopt IPSAS in the jurisdiction. Public sector reporting therefore continues to be based on nationally promulgated cash-basis standards rather than IPSAS-based requirements.

In accordance with the 2026 adoption definitions, where IPSAS have not been adopted and national cash-basis standards continue to apply, the jurisdiction is assessed as Not Adopted.

Current Status: Not Adopted

The legal foundation for the investigative and disciplinary (I&D) system in Egypt is established under multiple laws and regulatory frameworks. Responsibility for this function is therefore shared among several authorities depending on the segment of the profession.

Under Law No. 4 of 1972, the Syndicate of Commerce – Accountants and Auditors (SOC) is authorized to establish and operate an investigative and disciplinary system for professional accountants and auditors registered through the Ministry of Finance (MoF). Available information indicates that certain elements of this framework do not fully align with the requirements of Statement of Membership Obligation 6 (SMO 6).

In addition, Law No. 10 of 2009 empowers the Financial Regulatory Authority (FRA) to establish investigative and disciplinary arrangements for auditors of listed entities and non-banking financial institutions. The FRA maintains enforcement and oversight functions for registered auditors, including sanctions and regulatory actions for non-compliance with applicable accounting, auditing, and professional requirements. However, available information indicates that this framework also does not fully incorporate all the requirements of SMO 6.

The Egyptian Society of Accountants and Auditors (ESAA) also operates an investigative and disciplinary system for its members through its Investigation and Disciplinary Committee. ESAA’s self-assessment against the revised SMO 6 requirements identified several areas requiring improvement, including limited public transparency regarding misconduct criteria and outcomes, insufficient linkage between quality assurance findings and disciplinary actions, committee composition, and the range of available sanctions.

As multiple systems exist and are operational, but do not fully incorporate the requirements of SMO 6 for all professional accountants, the jurisdiction continues to be assessed as Partially Adopted.

Current Status: Partially Adopted

In accordance with the Companies Law No. 159 of 1981 and the Capital Market Law No. 95 of 1992, companies in Egypt are required to prepare annual financial statements in accordance with the financial reporting requirements established by ministerial decree and published in the Egyptian Gazette.

The Minister of Investment (MoI) has the authority to issue financial accounting standards in Egypt. Through Decision No. 69 of 2019, the Minister adopted the Egyptian Accounting Standards (EAS), which were subsequently amended in 2023. The standards incorporate certain updates based on International Financial Reporting Standards (IFRS) Accounting Standards, including requirements derived from International Financial Reporting Standard 9 Financial Instruments, International Financial Reporting Standard 15 Revenue from Contracts with Customers, International Financial Reporting Standard 16 Leases, and Egyptian Accounting Standard 50, which is based on International Financial Reporting Standard 17 Insurance Contracts.

However, according to the IFRS Foundation Jurisdictional Profile for Egypt, Egypt has not adopted IFRS Accounting Standards. The jurisdiction applies EAS, which are described as close to IFRS Accounting Standards but not identical or as comprehensive. The IFRS Foundation further notes that domestic listed companies are not required or permitted to apply IFRS Accounting Standards in their consolidated financial statements.

The jurisdictional profile also identifies specific differences between EAS and IFRS Accounting Standards, including differences in the accounting treatment of employee profit-sharing, foreign currency devaluation, revaluation models, and presentation options for comprehensive income.

In accordance with the 2026 adoption definitions, where national standards are not fully converged with IFRS Accounting Standards and compliance with IFRS cannot be asserted, the jurisdiction is assessed as Not Adopted.

Current Status: Not Adopted

Relevant Organizations

• Auditors Oversight Board (AOB)
• Egyptian Society of Accountants and Auditors (ESAA)
• Financial Regulatory Authority (FRA)
• Ministry of Investment and International Cooperation / General Authority for Investment and Free Zones (GAFI)
• Ministry of Finance

Relevant Legislation

• Accounting Practice Law No. 133 of 1951
• Companies Law No. 159 of 1981
• Law No. 10 of 2009 (Financial Regulatory Authority Law)

Relevant Publications

• Baker McKenzie. Doing Business in Egypt, 2016.
• Egyptian Society of Accountants and Auditors, SMO Action Plan, 2024
• IFRS Foundation, “IFRS Application Around the World – Jurisdictional Profile: Egypt,” January 2024
• UNCTAD, Review of Practical Implementation Issues Relating to IFRS: Case Study of Egypt, 2008
• World Bank, Report on the Observance of Standards and Codes (ROSC): Accounting and Auditing, Egypt, 2002