الهيئة العامة للرقابة المالية

• Aligning Egyptian Accounting Standards with international practices is crucial for establishing a strong reporting framework and enhancing the market’s investment appeal.
• The new Egyptian Auditing Standards represent a qualitative leap for improving the quality of financial statements and disclosures.
• New Accounting and Auditing Standards for Small and Medium Enterprises (SMEs).
• AI is a powerful force demanding prompt adoption and human resource training to maximize its efficiency in accounting and auditing.
• The conference featured high-level participation, including the Minister of Finance, officials from the Central Auditing Organization (CAO) and prominent leaders of accounting and auditing profession.

In a pivotal keynote speech that outlined the future of the accounting and auditing profession in Egypt, Dr. Mohamed Farid, FRA Chairman announced that the Authority is leading a comprehensive and unprecedented reform. This initiative aims to modernize the profession’s legislative and regulatory framework in preparation for leveraging the opportunities and addressing the challenges posed by the age of Artificial Intelligence (AI).

Dr. Farid delivered the address at the opening of the conference titled “The Future of the Accounting and Auditing in the Age of Artificial Intelligence,” held in Cairo on Saturday. High-level attendees included Mr. Ahmed Kouchouk, Minister of Finance, representatives from the Central Auditing Organization (CAO) and Syndicate of Commercial Professions.

In his capacity as Chairman of the Permanent Committee for Egyptian Accounting Standards and Egyptian Standards on Auditing, Limited Review, and Other Assurance Engagements, Dr. Farid highlighted the significant progress made. He explained that the Committee has successfully introduced more than 15 fundamental amendments and updates to the Egyptian Accounting Standards, noting that the introduction of some of these key standards was previously considered a “dream” for the profession’s members, but has now become a practical reality.

FRA Chairman affirmed that 2027 will mark a decisive turning point for the complete update of Auditing Standards, stressing that the Authority will strictly and fully implement the new system. This robust implementation will apply to all companies under its supervision, as well as those with publicly traded shares in the markets.

Following intensive efforts by Standards Committee, chaired by Dr. Mohamed Farid, His Excellency the Prime Minister, Dr. Mostafa Madbouly, issued ministerial decree No. 3725 of 2025 earlier in November to mandate the application of the new Egyptian Standards on Auditing, Review and Other Assurance Engagements.

This landmark decree stipulates the cancellation of all previous standards effective January 1, 2027, representing the first comprehensive update to the Auditing Standards since their initial issuance in 2008.

Dr. Farid explained that the new updates directly address subjects previously considered highly complex. These include clear standards for the valuing, inclusion and auditing of key assets like real estate investments, fixed assets, and intangible assets.

Addressing the impact of Artificial Intelligence, FRA Chairman declared, “The notion that AI will not affect employment levels is false; its impact is already being felt.” He cited reports from major companies listed on global markets like Nasdaq, New York and London which have announced layoffs due to their reliance on AI-supported productive efficiencies.

Dr. Farid emphasized that AI’s efficient operation is contingent upon a strict framework of disciplined accounting and auditing standards. He stressed the Authority’s primary goal: to empower professionals and ensure the Egyptian system aligns with international standards.

He further explained that the core of the auditing process – professional skepticism and sound decision-making – will remain an inherently human element. AI will act as a supportive tool, offering more precise indicators and evidence, thereby necessitating a qualitative enhancement of skills for professionals in the field.

FRA Chairman pointed out that developing human capital is paramount. He asserted that earlier anxieties about professionals’ ability to apply intricate standards have vanished, a direct result of confidence in the expertise of Egyptian professionals.

Dr. Farid underscored the continuous pursuit of knowledge by quoting: “A person remains knowledgeable as long as they seek knowledge; if they believe they have acquired it all, they have become ignorant.” He affirmed the Authority’s collaboration with all relevant entities to advance the profession.

He detailed an integrated training plan, spearheaded by the Financial Services Institute in partnership with the Syndicate of Commercial Professionals, the Egyptian Society of Accountants and Auditors and the Egyptian Institute of Accountants and Auditors. This comprehensive plan is designed to address the needs of thousands of companies across the Egyptian market, extending beyond just listed entities.

In his closing remarks, FRA Chairman announced a strategic shift towards digitizing auditing firms to enhance the quality of financial reports. This initiative involves a collaborative effort between the Institute of Accountants and the Authority’s Regulatory Lab to study and implement mechanisms for digitizing audit operations and managing audit firms.

Furthermore, FRA Chairman revealed crucial reforms across the financial sector: new governance controls for listed and non-banking financial entities regarding external auditor changes and the launch of tailored Accounting and Auditing Standards for SMEs to boost their compliance and report quality.

Dr. Farid concluded his remarks by asserting that the forthcoming regulatory framework is designed to elevate the accounting and auditing profession to a level of increased professionalism, discipline and transparency. He stated: “No party will be allowed to pressure or remove an auditor for providing a sound professional opinion on financial reports.”