الهيئة العامة للرقابة المالية

• The new standards align with FRA’s vision to enhance professional efficiency in the non-bank sector.
• The new standards continue the Authority’s effort to improve professional quality and conduct.

FRA Board of Directors, chaired by Dr. Mohamed Farid, has issued Decrees no. 174 and 175 of 2024 to enhance the quality  control and conduct standards for registered auditors. This move aligns with FRA’s vision to develop and improve the efficiency of professionals in the non-bank financial sector, ultimately elevating the overall efficiency and competitiveness of the sector.

Effective January 1, 2026, FRA Decrees no. 174 and 175 will mandate new quality control and conduct standards for registered auditors operating within the non-bank financial sector. This includes auditors working for listed companies, insurance firms, real estate finance, leasing, factoring, consumer finance, microfinance, private pension funds and capital market companies registered at FRA.

Decree no. 174 of 2024 specifically outlines quality control standards. These standards aim to ensure adherence to professional standards, legal and regulatory requirements, and the accuracy of audit reports. Additionally, the decree promotes strong governance practices within accounting firms. Key provisions include: adherence to relevant requirements, implementation of robust quality control systems, senior management responsibilities, rigorous client acceptance and continuance processes.

To review decree no.174 (click here).

Additionally, Decree no. 175 of 2024 establishes a robust framework of ethical and conduct standards for registered auditors, in accordance with global norms and professional ethics.

The decree regulates, for example but not limited to, adherence to the codes of conduct of accounting and auditing professionals and fundamental principles, as well as independence standards.

To review decree no.175 (click here).

These two decrees are part of FRA’s supervisory and regulatory role. The Authority aims to establish systems and rules that promote market efficiency and transparency. These efforts align with the Authority’s broader goal of enhancing transparency, combating corruption, and stabilizing the financial system. Additionally, these standards will foster greater openness for the non-bank financial sector in the global economy.

The ongoing efforts to update accounting standards aim to foster integration with international standards and adopt global best practices. These reforms are part of the government’s broader strategy to promote sustainable economic growth and development.

Dr. Mohamed Farid, FRA Chairman underscored the importance of the Egyptian Accounting Standards in providing accurate and reliable financial information. He noted that recent reforms have significantly enhanced Egyptian Accounting Standards, including the adoption of fair value assessment of assets, real estate investment and property rights instead of book value.