Regulatory Alerts2009-01-01
Board of Directors Decision No. 50 of 2009 Regarding Registration, Continuation, and Deletion Criteria for Auditors in the Authority's Register
The Capital Market Authority's Board of Directors issued Decision No. 50 of 2009 to establish operational procedures for its Quality Control Unit overseeing registered auditors. The decision mandates the Unit to investigate complaints, audit professional practices, summon auditors for inquiries, access relevant records, and deploy inspectors to verify compliance with quality standards. It further imposes strict confidentiality obligations on Unit staff and stipulates that the decision takes effect the day after its publication on April 29, 2009.
Board of Directors Decision of the Authority
No. (50) for the Year 2009
Dated 29/4/2009
Regarding Registration, Continuation of Registration, and Deletion Criteria
in the Register of Auditors with the Authority
Board of Directors of the Capital Market Authority
Having reviewed the Law on Joint Stock Companies, Companies Limited by Shares, and Limited Liability Companies issued by Law No. 159 of 1981 and its Executive Regulations;
and the Capital Market Law issued by Law No. 95 of 1992 and its Executive Regulations;
and Presidential Decree No. 51 of 1997 regarding the provisions governing the management of the Cairo and Alexandria Stock Exchanges and their financial affairs;
and the Authority's Board of Directors Decision No. 84 of 2008 regarding the establishment of the Quality Control Unit for the work of registered auditors;
and the Authority's Board of Directors Decision No. 33 of 2009 issued on 29/4/2009 regarding registration, continuation, and deletion criteria for auditors in the Authority's register;
and the approval of the Authority's Board of Directors in its meeting No. 6 of 2009 dated 29 April 2009.
Has Decided
Article (1)
The Quality Control Unit for the work of registered auditors shall verify the quality of their work by carrying out the following executive procedures:
a. Receive reports and complaints and take necessary measures to register and examine them.
b. Review the frameworks and procedures applied regarding audit work and other professional services provided by auditors to ensure compliance with quality requirements and standards.
c. Require the appearance of the auditor before the Unit to respond to complaints received against them or to establish any failure to comply with quality standards and requirements.
d. Request access to documents or records pertaining to the audited auditor, and obtain certified copies thereof.
e. Dispatch inspectors and request information available from partners and employees of the professional office through which the audited auditor practices.
Article (6)
Staff members of the Unit are obligated to maintain the confidentiality of any information received or documents or records they become aware of, and not to use them for purposes other than achieving the Unit's objectives, in a manner that does not conflict with the confidentiality provisions stipulated in prevailing laws and regulations.
Article (7)
This Decision shall take effect from the day following its issuance, and competent authorities shall implement this Decision within their respective jurisdictions.
Hamad Saad Abd El-Latif
Chairman of the Board of Directors