Rules and standards for registering and delisting auditors in the register of the Central Bank of Egypt

Rules and standards for registering and delisting auditors in the register of the Central Bank of Egypt

First: Conditions for registration in the register of auditors:

• 1. Must be of Egyptian nationality.
• 2. Must possess full civil capacity.
• 3. Must hold a Bachelor of Commerce degree in the Accounting branch from one of the recognized Egyptian or foreign universities (or hold a Bachelor of Commerce degree from a non-Accounting branch with a Postgraduate Diploma in Accounting, Auditing, or Taxation).
     This condition is exempted for holders of membership in the Egyptian Association of Accountants and Auditors or holders of a PhD degree in Accounting or Auditing from one of the recognized Egyptian or foreign universities.
• 4. Must be registered in the Free Practice Branch for Accounting and Auditing at the Syndicate of Commercialmen.
• 5. Must be of good reputation, with no judicial rulings or disciplinary decisions against them affecting honor or trust.
• 6. One of the following must apply to the applicant for registration:
  • Must be registered in the register of auditors with the Egyptian Financial Regulatory Authority (FRA).
  • Must be registered in the General Register of Accountants and Auditors at the Ministry of Finance in the table of Accountants and Auditors authorized to audit joint-stock companies, having audited or participated in auditing no less than 25 companies over a period of no less than five years.
  • Must hold membership in the Egyptian Association of Accountants and Auditors, or hold a PhD degree in Accounting or Auditing, having supervised or participated in the audit of at least ten joint-stock companies over the past five years.
• 7. Must have audited or participated in the audit of one of the banks for a period of at least two years.
• 8. Must be registered in the register of auditors practicing the profession outside the governmental scope at the Central Auditing Organization (CAO).
• 9. The appointment of an auditor for a bank must not violate any provisions stipulated in the Central Bank of Egypt and Banking System and Money Law or other laws regarding the prohibition of an auditor auditing the accounts of more than two banks at the same time, as well as the prohibition of receiving from the bank whose accounts are being audited any financing, current account balances, credit facilities, or guarantees of any kind for themselves, their spouses, their children, or their relatives up to the second degree, or for any entity in which this auditor, their spouse, their children, or their relatives up to the second degree are partners or shareholders with actual control, or members of their boards of directors in a personal capacity.
• 10. The auditor or any of their partners or any member of their office must not be a chairman of the board of directors or a member of any bank operating in Egypt, nor participate in its management in any form.
• 11. The period during which the auditor audits the bank appointed as auditor must not exceed five years, and the period during which members of the same accounting firm audit the bank must not exceed ten years. The same accounting firm may not be reappointed unless at least five years have passed. The bank's auditor must be from two different audit offices.
• 12. Fulfillment of the following professional competence and suitability conditions:
      (a) The number of partners of the auditor authorized to audit joint-stock companies must not be less than two partners, each of whom has supervised or participated in the audit of at least three joint-stock companies. (b) The auditor must have a supported work team of no less than six members, at least three of whom are authorized to audit joint-stock companies, each of whom has supervised or participated in the audit of at least one joint-stock company. (c) The auditor and their supported work team must adhere to the Egyptian Auditing and Limited Assurance Standards and other assurance engagements, as well as the ethics and conduct of the accounting and auditing profession. (d) The auditor, their partners, and their supported work team must adhere to continuous professional education and training, with a minimum of 30 hours per year.
• 13. The approval for the registration of an auditor is valid for five years, renewable for similar periods. To continue registration in the register, the applicant must submit a request at least ninety days before the expiration of the mentioned period.
• 14. A fee of 3,000 Egyptian Pounds is collected for the study and examination of new applications, and a fee of 2,000 Egyptian Pounds is collected for the continuation of registration (every 5 years). In case of requesting a certificate confirming registration, a fee of 250 Egyptian Pounds is collected, which is added to the Central Bank of Egypt.

Second: Disciplinary accountability for auditors Any auditor who submits incorrect data or violates the rules and conditions of appointment mentioned above, or fails to exercise professional due care, or violates any professional performance standards or professional ethics and conduct, or commits an act or behavior that tarnishes the honor of the profession and leads to an insult to its dignity, or against whom a final judicial ruling is issued for a felony or one of the crimes affecting honor or trust, or in one of the crimes stipulated in the Central Bank of Egypt and Banking System and Money Law or in the Anti-Money Laundering Law, shall be subject to one of the following disciplinary decisions, depending on the circumstances:

• 1. Warning.
     The warning is issued in case of violation of professional competence and suitability conditions, and the warning is accompanied by specifying the time period within which the causes of those violations must be removed.
• 2. Temporary suspension of registration.
     Registration is temporarily suspended for any registered person in the register upon the occurrence of any of the following cases:
     a. Violation of professional competence and suitability conditions.
     Such suspension is for a specified period to remove and correct the alleged violations or to implement the prescribed measures and requirements. b. Issuance of disciplinary decisions against them due to failure to exercise due professional care, or violation of any professional performance standards, or professional ethics and conduct. This suspension is for a period not exceeding three years.
• 3. Deletion of their name from the register.
     The name of any registered person in the register of auditors is deleted upon the occurrence of any of the following cases:
     a. Death. b. Loss of one of the conditions for registration in the register of auditors with the Central Bank of Egypt.
     c. A final judicial ruling has been issued against them for a felony or one of the crimes affecting honor or trust, or in one of the crimes stipulated in the Central Bank of Egypt and Banking System and Money Law or in the Anti-Money Laundering Law.
     d. Gross failure to exercise due professional care, or committing an act or behavior that tarnishes the honor of the profession and leads to an insult to its dignity in a severe manner. e. Submission of a request to delete their name from the register. Except for the cases mentioned in items (a, c, d), it is permissible to re-register a person whose name was deleted from the register of auditors if the reason for deletion is removed, upon a request submitted by the concerned party. The warning, temporary suspension of registration, or deletion from the register is based on a recommendation from the committee formed between the Central Bank of Egypt and the Central Auditing Organization.

Application for Registration / Continuation of Registration In the Register of Bank Auditors Practicing the Profession Outside the Governmental Scope

To: Mr. Chairman of the Technical Secretariat of the Auditor Registration Committee Supervision and Oversight Sector - Central Bank of Egypt Greetings,

I kindly request your approval for my registration / continuation of my registration in the register of bank auditors outside the governmental scope at the Central Bank of Egypt.

Please accept my highest respect,

Accountant Name: Mobile:
Accounting Firm Name:
Headquarters Address: Telephone:
Branches Address: Telephone:
Residence Address: Telephone:
National ID Number:
Tax Card Number:
Name:
Signature:
Office Stamp:
Dated in / / 20