Decision No. 192 of 2021 Amending Decision No. 3 of 2021 on Reorganizing Registration, Continued Registration, and Delisting Controls for Auditors with the Authority

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Financial Regulatory Authority Board of Directors Decision No. 192 of 2021 Dated 30/11/2021 Amending Board of Directors Decision No. (3) of 2021 Regarding the Reorganization of Registration, Continued Registration, and Delisting Controls in the Register of Auditors with the Authority

Board of Directors of the Financial Regulatory Authority Having reviewed Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Board of Directors Decision No. 3 of 2021 regarding the reorganization of registration, continued registration, and delisting controls in the Register of Auditors with the Authority; And after the approval of the Authority's Board of Directors at its meeting held on 30/11/2021;

Decided: (Article One) The texts of paragraphs (the preamble to the first paragraph, the second, and the fourth) of Article Ten of the aforementioned Board of Directors Decision No. 3 of 2021 shall be replaced with the following texts: Article Ten - Preamble to the First Paragraph: The Board of Directors of the Audit Quality Control Unit, in the event that an auditor is proven to have violated any of the professional performance standards, professional conduct, or Egyptian auditing standards, or if an auditor fails to meet one of the registration conditions in the Register, may take one or more of the following measures: .................................. Article Ten - Second Paragraph: The decisions of the Unit's Board of Directors to take the measures referred to in this Article shall be issued by an absolute majority of the attending members with voting rights, with the exception of the measures stipulated in clauses (4, 5, 6), which shall be issued with the approval of two-thirds of the attending members with voting rights.

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Article Ten - Fourth Paragraph: The measures referred to in this Article shall not be effective until approved by the Head of the Authority, provided that these measures are presented to the Authority's Board of Directors at its first subsequent meeting for adoption, all without prejudice to the auditor's right to appeal the measures issued against them before the appeal committees stipulated in the laws regulating non-banking financial activities.

(Article Two) A new article numbered (Third bis) shall be added to the aforementioned Board of Directors Decision No. 3 of 2021, with the following text: Article Three bis: Anyone who has worked in an entity whose work or competencies include auditing financial statements may be registered in the first section of the Register, provided that the applicant for registration meets the following conditions: 1 - They must have at least fifteen years of experience in auditing financial statements at their workplace. 2 - They must be among the practitioners registered in the General Register of Accountants and Auditors at the Ministry of Finance. 3 - They must be a member of the Division of Free Practice Professionals for Accounting and Auditing at the Syndicate of Commercial Professions. 4 - Fulfillment of professional capacity and solvency conditions by providing evidence of the following: (a) A work team comprising at least three experienced individuals in the field of accounting and auditing for joint-stock companies for a period of no less than five years. (b) A summary of the quality control system applied by the entity and verification of professional independence. (c) The system applied by the entity for compliance with continuous professional education.

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5 - No final criminal judgments have been issued against them. 6 - No disciplinary judgments have been issued against them. 7 - Payment of prescribed service fees.

(Article Three) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall come into force on the day following its publication date, and any provision contradicting it shall be repealed.

Head of the Authority's Board of Directors Dr. Mohamed Omran