In a keynote address on the future of accounting and auditing in the age of artificial intelligence, the Egypt Financial Regulatory Authority’s chair, Mohamed Farid, set out a comprehensive overhaul of Egypt’s accounting and audit framework, including the adoption of new Egyptian standards for auditing, limited review and other assurance engagements. A Prime Ministerial decision issued in early November 2025 provides for the previous auditing standards to be cancelled from 1 January 2027, with the new framework to be applied to entities under the authority’s supervision and companies whose shares are traded on the markets. More than 15 substantive amendments and updates have also been made to the Egyptian Accounting Standards through the permanent standards committee chaired by Farid, with updates covering areas described as complex such as the treatment and audit of investment property, fixed assets and intangible assets, and framed as bringing Egyptian practice closer to international approaches. Further initiatives flagged include new accounting and auditing standards for small and medium-sized enterprises, planned amendments to corporate governance standards for listed companies and non-banking financial services firms to introduce clear controls around changing the external auditor, and a project to digitise audit firms through cooperation between the Egyptian Institute of Accountants and the authority’s regulatory sandbox. Capacity building is intended to be supported by an integrated training plan led by the Financial Services Institute with professional bodies, alongside the push to adapt to AI-enabled tools while retaining human professional judgement. The legacy auditing standards remain in force until 1 January 2027, which Farid described as a key waypoint for completing the transition to the updated auditing standards framework.
Egypt Financial Regulatory Authority 2025-11-23
Egypt Financial Regulatory Authority outlines 1 January 2027 switch to new Egyptian auditing standards and wider accounting and governance reforms
The Egypt Financial Regulatory Authority, led by Chair Mohamed Farid, announced an overhaul of Egypt's accounting and audit framework, including new standards for auditing and assurance engagements. Previous standards will be canceled from 1 January 2027, aligning Egyptian practices with international norms. Additional initiatives include new standards for SMEs, amendments to corporate governance standards, and a project to digitize audit firms.