The Egyptian Audit Standards were discussed when the Committee concerned with examining the Egyptian auditing and limited inspection held its meeting, which was chaired by the Minister of Investment, Dr. Mahmoud Mohieldin.

The committee includes among its members the Chairman of the Capital Market Authority, the Chairman of the General Authority for Investment and Free Zones, the Chairman of the Egyptian Accountants and Auditors Association and a representative of the Central Auditing Organization.

The new audit standards are consistent with the international audit standards and come within the course of procedures taken to enforce Egyptian joint stock companies to prepare their financial statements according to the International Financial Reporting Standards (IFRS).

The Egyptian accounting standards have been effective since January 2007 while the Egyptian audit and limited inspection standards complement the transparency and disclosure requirements according to the international standards of auditing financial statements and preparing their respective auditor’s reports.

The Egyptian audit and limited inspection standards includes 10 sets of criteria which cover 38 standards including all tasks performed by auditors and legal accountants. These include the general principles that govern the work of auditors, their tasks and audit manuals used in their work. The standards explain how auditors can reply to other auditors especially as more holding companies are being established by the private sector to include many companies whose financial statements may be audited by other auditors. Standards include the rules of preparing auditors’ reports as well as the tasks and reports of limited inspection of quarterly financial statements.

The meeting approved to issue the Egyptian audit and limited inspection standards which should be observed by auditors in auditing financial statements issued by 1 January 2009. Legal accountants shall comply with these standards in other fields that require issuance of certifications and reports of their tasks as per the same date.

The Egyptian Audit Standards which will be enforced by a decree of the Minister of Investment will be applicable to all joint stock companies governed by law 159/1981 on joint stock companies, the investment guarantees and incentives law and the Capital Market Law # 95/1992.