EG Chapter (01) - The Accounting and Auditing

Profession in Egypt

Points to be discussed in this chapter:

1- Introduction to the accounting and auditing profession in Egypt.
a- General register
b- Special register
2- The Profession and the Law Regulating the Profession and its
criticism.
3- The Egyptian Society of Accounting & Auditors (ESAA).

1-Introduction to the accounting and auditing profession in

Egypt.
 Regulated by Law 133/1951.
a- Registered as “The General Register for Accountants & Auditors” in
the ministry of Finance:

1-Schedule (A): 2. Schedule (B):

- For holders of B.A in accounting
- Trainees for a period of 3 years
(CPA office, equivalent position, or
Lecturer for 3 years)
- CPA’s who completed the
training requirement in a CPA
firm or in equivalent positions.
- They are allowed to perform
but not to audit corporations

but may apply for authorization of

auditing corporation after performing
their profession for a period of 5 years.

• Approximate number of CPA’s registered in the General Register with

the Ministry of Finance is more than 30,000 auditors.
1
 b- Special registers
Due to the fact that the General Register allows registration of Accountants
& Auditors without examining them to make sure of their qualifications and
capabilities,

Supervisory authorities have made Special Registers for the auditors who
will be allowed to audit the financial statements of entities that fall under
their supervision. These entities are:

The Central Audit The Central Bank of The Egyptian Financial

Organization (CAO) Egypt (CBE) Supervisory Authority
(EFSA) (CMA, EISA,
EMFA)

2- The Profession and the Law Regulating the Profession and

its criticism.
 Law 133/1951 regulating the Accounting & Auditing Profession has been
criticized by Regulators, highly qualified professionals and by ROSC &
IOSCO because of:

Criticism 1
The law does not necessitate passing
a qualified exam as a condition for
Registration.
Criticism 2
allows applicants who never been
trained in auditing firm to be
registered if they worked in some
specific jobs.

3-The Egyptian Society of Accounting & Auditors (ESAA).

 Established by a Royal Decree in 1946.

 Members of the Society are only 2500.

2
  Membership is granted to:

trainees who pass 2 qualifying spend 3 years of training in the

exams (Intermediate & Final) and profession under the direct
supervision of a member or another
qualified practicing accountant

Members of the society would be qualified to audit corporations as

they are exempted from the condition of spending 5 years experience
in performing the profession before auditing corporations.

 The ESAA in co-operation with The Ministry of Finance, The Commerce

Graduate Syndicate, the CMA and the CAO has proposed all necessary
amendments to the current law 133/1951 and drafted a new proposed law
to regulate The Accounting and Auditing Profession in Egypt.

Examples of questions you may be asked in this chapter:

1- What are the conditions that should be satisfied before being licensed
as an auditor according to law 133/1951?
Why these conditions did not satisfy supervisory authorities?
What are the special requirements for being registered in special
registers with supervisory authorities?