Egypt updates auditing standards, in effect Jan 2027

Egypt’s Prime Minister Moustafa Madbouly has issued on Sunday a decree approving a new framework of national auditing and assurance standards, the first comprehensive update in 17 years, in a move aimed at enhancing financial transparency and investor confidence.

Under Cabinet Decree No. 3725 of 2025, the new Egyptian Standards on Auditing, Review, and Other Assurance Engagements, developed by the Financial Regulatory Authority (FRA), will take effect on 1 Jan., 2027, replacing the framework issued in 2008.

According to FRA statement, the overhaul brings Egypt’s auditing rules closer to international standards, improving the reliability and comparability of financial statements while reinforcing corporate governance and oversight.

The framework includes 46 standards across three categories: auditing, limited review, and other assurance engagements. It also introduces a new quality control standard requiring audit firms to maintain effective internal controls and meet professional and legal obligations.

Public interest entities will be required to fully implement the new standards, while smaller firms will follow simplified versions tailored to their operational scale.

The update tightens documentation requirements in high-risk areas, including accounting estimates, fraud risk assessment, and going-concern evaluations, and introduces a long-form audit report for listed companies, enhancing disclosure of key audit matters.

In addition, the new standards encourage the adoption of digital auditing tools and data analytics to raise efficiency and improve the quality of financial oversight, reflecting Egypt’s growing integration with global financial markets.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser