Cairo: Prime Minister Moustafa Madbouly issued a decree approving a new framework of national auditing and assurance standards, marking the first comprehensive update in 17 years. This move aims to enhance financial transparency and investor confidence.

According to State Information Service Egypt, the overhaul, under Cabinet Decree No. 3725 of 2025, aligns Egypt's auditing rules more closely with international standards. The new Egyptian Standards on Auditing, Review, and Other Assurance Engagements, developed by the Financial Regulatory Authority (FRA), will replace the framework issued in 2008 and take effect on January 1, 2027. This change is expected to improve the reliability and comparability of financial statements while reinforcing corporate governance and oversight.

The framework includes 46 standards across three categories: auditing, limited review, and other assurance engagements. It introduces a new quality control standard that requires audit firms to maintain effective internal controls and meet professional and legal obligations. Public interest entities will need to fully implement the new standards, while smaller firms will follow simplified versions tailored to their operational scale.

The update also tightens documentation requirements in high-risk areas, including accounting estimates, fraud risk assessment, and going-concern evaluations. It introduces a long-form audit report for listed companies, which enhances the disclosure of key audit matters. Additionally, the new standards encourage the adoption of digital auditing tools and data analytics to improve efficiency and financial oversight quality, reflecting Egypt's growing integration with global financial markets.