Egypt will introduce new accounting and auditing standards tailored for small and medium-sized enterprises as part of a broader profession reform, Financial Regulatory Authority Chairperson Mohamed Farid said on Saturday. The move aims to strengthen compliance, improve financial reporting quality, and align Egyptian standards with international best practices to attract investment.
Farid spoke at the opening of the “Future of the Accounting and Auditing Profession in Egypt in the Age of AI” conference in Cairo, attended by Finance Minister Ahmed Kouchouk and representatives from the Central Auditing Organization and the Commercial Professions Syndicate.
He stated that the FRA is leading a comprehensive reform to modernize the legislative and regulatory framework for accounting and auditing, preparing the sector for AI challenges and opportunities. As chair of the Permanent Committee for Egyptian Accounting and Auditing Standards, he noted more than 15 major amendments have been introduced, with some new standards once seen as a “dream” for practitioners.
The year 2027 will be decisive for completing the overhaul, with strict enforcement across supervised entities, including publicly traded companies. In November, Prime Minister Mostafa Madbouly issued Decree No. 3725 of 2025 approving the new standards, which cancel existing ones from January 1, 2027—the first comprehensive update since 2008.
The updates address complex areas like valuation rules for investment properties, fixed assets, and intangible assets, along with related reporting and audit requirements. On AI, Farid said assuming unchanged employment is unrealistic, citing global companies' layoffs due to AI efficiencies. However, the core of auditing—professional skepticism and sound judgment—remains human, with AI serving as a supportive tool requiring skills upgrades.
The main challenge is developing human capital, and fears that professionals would struggle with sophisticated standards have proven unfounded. Farid quoted: “A person remains knowledgeable as long as they seek knowledge. Once they believe they know everything, they become ignorant.”
The FRA is cooperating with institutions for training programs covering thousands of companies, plus a push to digitize audit firms via the regulatory sandbox. Upcoming amendments will update corporate governance for listed companies and non-banking financial institutions, including fairer rules on changing external auditors. He concluded that the new system will foster stronger professionalism, discipline, and transparency, adding: “No party will be allowed to pressure you or replace you because of a well-founded professional opinion in your financial reports.”