Egypt will introduce new accounting and auditing standards tailored for small and medium-sized enterprises (SMEs) as part of a broader reform of the profession, Financial Regulatory Authority (FRA) Chairperson Mohamed Farid said on Saturday. He said the move would strengthen compliance, improve financial reporting quality and align Egyptian standards with international best practices to help 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. Finance Minister Ahmed Kouchouk attended the event, alongside representatives from the Central Auditing Organization and the Commercial Professions Syndicate.
He said the FRA is leading a comprehensive reform to modernise the legislative and regulatory framework governing accounting and auditing. The overhaul, he said, aims to prepare the sector for the challenges and opportunities brought by artificial intelligence (AI).
As chair of the Permanent Committee for Egyptian Accounting and Auditing Standards, Farid said more than 15 major amendments and updates have already been introduced. Some of the newly issued standards, he noted, were once viewed as a “dream” for practitioners before becoming applied reality.
Farid said 2027 will be a decisive year for completing the audit-standards overhaul, warning that “time is moving quickly.” He added that the FRA will strictly enforce the new framework across all supervised entities, including companies with publicly traded shares.
Earlier in November, Prime Minister Mostafa Madbouly issued Decree No. 3725 of 2025 approving the new Egyptian auditing and financial-review standards. The decree cancels all existing standards starting 1 January 2027 — the first comprehensive update since 2008.
Farid said the new updates address previously complex areas, including valuation rules for investment properties, fixed assets, intangible assets and the reporting and audit requirements associated with them.
On AI, Farid said it is unrealistic to assume employment will remain unchanged. He pointed to disclosures by major listed companies globally reporting layoffs linked to AI-driven efficiency gains. AI, he said, cannot operate without a clear and robust accounting and auditing framework, and the FRA’s priority is to ensure Egypt’s system meets global benchmarks.
He added that the core of the audit process — professional scepticism and sound judgment — will remain fundamentally human. AI, he said, will serve only as a supportive tool by offering more precise indicators and evidence, which in turn requires significant skills upgrades for practitioners.
Farid said the main challenge now lies in developing human capital. Fears that local professionals would struggle to adopt more sophisticated standards, he said, have proven unfounded.
“A person remains knowledgeable as long as they seek knowledge. Once they believe they know everything, they become ignorant,” he said.
He noted ongoing cooperation between the FRA and relevant institutions to support the profession’s development. The FRA’s Financial Services Institute — in partnership with the Commercial Professions Syndicate, the Society of Accountants and Auditors and the Egyptian Institute of Accountants and Auditors — is implementing a comprehensive training programme designed to meet the needs of thousands of companies, not just listed firms.
Farid also announced a push to digitise audit firms to advance the quality of financial reporting. This will be explored through cooperation between the Institute of Accountants and the FRA’s regulatory sandbox, which will study mechanisms for digitalising audit operations and office management.
He said upcoming amendments will also update corporate-governance rules for listed companies and non-banking financial institutions, including clearer and fairer regulations governing changes to external auditors.
Farid concluded by saying that the new system will lead the profession into a future marked by stronger professionalism, discipline and transparency.
“No party will be allowed to pressure you or replace you because of a well-founded professional opinion in your financial reports,” he said.
