Regulatory Alerts2009-01-01
Decision No. 34 of 2009 of the Board of Directors of the General Authority for Financial Supervision Amending the Decision Establishing the Quality Control Unit for Auditors Registered with the Authority
The General Authority for Financial Supervision issued Decision No. 34 of 2009 to formally rename its internal oversight body to the Quality Control Unit for Auditors Registered with the General Authority for Financial Supervision. The decision expands the unit's mandate to include proposing regulatory rules and suspension or deregistration procedures for auditors of listed companies, public subscription entities, securities firms, investment funds, and insurance and real estate financing companies. It also restructures the unit's governing board by defining its composition, establishing a quorum and voting thresholds for disciplinary actions, and prohibiting voting members from holding concurrent auditing practices or professional ties to practicing auditors.
Decision of the Board of Directors
of the General Authority for Financial Supervision
No. (34) for the Year 2009 dated 1/9/2009
Regarding the Amendment of the Decision Establishing the Quality Control Unit for Auditors Registered with the Authority
Chairman of the Board of Directors of the General Authority for Financial Supervision
After reviewing the Law on Joint Stock Companies, Partnerships Limited by Shares, and Limited Liability Companies issued under Law No. 159 of 1981 and its Executive Regulations,
and the Law on Supervision and Control of Insurance issued under Law No. 10 of 1981 and its Executive Regulations,
and the Capital Market Law issued under Law No. 95 of 1992 and its Executive Regulations,
and the Real Estate Financing Law issued under Law No. 148 of 2001 and its Executive Regulations,
and the Law Regulating Supervision over Non-Banking Financial Markets and Instruments issued under Law No. 10 of 2009,
and Decision No. 84 of 2008 of the Board of Directors of the General Authority for the Capital Market Regarding the Establishment of the Quality Control Unit for Auditors Registered with the Authority's Records,
and upon the approval of the Board of Directors of the General Authority for Financial Supervision in its meeting No. (2) for the year 2009 dated 3/8/2009,
It has been decided
Article One
The name "Quality Control Unit for Auditors Registered with the Authority's Records" is amended to become "Quality Control Unit for Auditors Registered with the General Authority for Financial Supervision's Records", and the following article is replaced:
Referred to as:
Article One of the Decision Establishing the Quality Control Unit for Auditors Registered with the Authority's Records
Article Two
The following item is replaced with Item No. (1) of Article Two of the Decision Establishing the Quality Control Unit for Auditors Registered with the Authority's Records, referred to as:
1- Proposing rules for auditors permitted to audit the accounts of companies whose securities are listed on the Securities Exchange, public subscription companies, companies operating in the securities field, investment funds established by banks or insurance companies, real estate financing companies, insurance and reinsurance companies, and cooperative insurance associations, in addition to proposing measures, rules, and procedures for suspending registration in the register or striking registration from the register, and approving these rules by the Board of Directors of the Authority.
Article Three
The following article is replaced with Article Three of the Decision Establishing the Quality Control Unit for Auditors Registered with the Authority's Records, referred to as:
Registered with the Authority's Records, referred to as:
The Unit shall have a Board consisting of:
| Chairman of the Board | Chairman of the General Authority for Financial Supervision or his delegate |
|---|---|
| Vice Chairman of the Board | Appointed by the Chairman of the General Authority for Financial Supervision |
| Member | Full-time Executive Director |
| Member | Representative of the Central Auditing Organization |
| Member | Representative of the Ministry of Finance |
| Member | A professor of Accounting and Auditing at one of the Egyptian universities, or an experienced auditor |
| Member | Representative of the General Authority for Investment |
| Member | Representative of investors |
The following shall attend Board meetings without voting rights:
- Chairman of the Free Professions Branch for Accounting and Auditing at the Chamber of Commerce
- Chairman of the Association of Accountants and Auditors
- Chairman of the Egyptian Institute of Certified Public Accountants
- Representative of the Securities Association
- Representative of the Egyptian Insurance Union
No member with voting rights within the Board may practice as an auditor or be professionally affiliated in any manner with any practicing auditor throughout the duration of their membership.
Article Four
The following article is replaced with Article Five of the Decision Establishing the Quality Control Unit for Auditors Registered with the Authority's Records, referred to as:
The Board's meeting shall not be validly convened unless at least five members are present, and Board decisions shall be issued by a simple majority of attending members, except for recommendations to suspend or strike the registration of an auditor or to take any measures or actions against them, for which the approval of at least five members is required.
These recommendations shall not take effect until the date of approval by the Board of Directors of the Authority.
Article Five
This Decision shall be published in the Egyptian Gazette and shall take effect from the day following its publication.
Dr. Ziad Bahaa El-Din
Chairman of the Board
46076
Headquarters: Smart Village, Building 15 - 84 B
Km 28, Cairo–Alexandria Desert Road
6th of October Governorate, Postal Code: 12577
Telephone: +202 2537 0040 - Fax: +202 2537 0041
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg