Accounting and Auditing in Egypt
Accounting and Auditing in Egypt
Accounting and auditing in Egypt play a vital role in the financial activities and record-keeping process of any business. With the challenging phase of the world economy and business expansions, the demand for accounting and auditing services is on the rise. In this article, let’s take a closer look at the definition of both terms and the similarities and differences between accounting and auditing in Egypt.
What are Accounting and Auditing in Egypt?
Accounting
Accounting is one of the main functions of a business. It refers to the process of capturing, classifying, summarizing, analyzing, and presenting financial records, transactions, and profitability. It has many types, such as cost accounting, financial accounting, management accounting, etc.
Accountants prepare financial statements, including balance sheets, income statements, and cash flow statements, which give a comprehensive view of a company’s financial health.
Auditing
Auditing refers to the examination of the financial statements or records of an organization. It is carried out after the final preparation of the financial accounts and statements and involves carrying out the inspection and statutory audit of the financial statements. It has two main types: internal and external audits.
Auditing gives a fair opinion on whether the financial records and statements provide a fair reflection of the actual financial position of the organization. It is worth noting that the auditors are the persons licensed by the Ministry of Finance and adhere to Egyptian Auditing Standards, and they carry out the auditing process under the provisions of the applicable laws on behalf of regulators or shareholders.
Similarities Between Accounting and Auditing in Egypt
Accounting and auditing in Egypt are similar in many aspects, including:
- They need a knowledge of accounting principles.
- They are generally done by persons with an accounting degree.
- They use essential techniques and procedures of computation, bookkeeping, and analysis to compile financial reports and statements.
- They can also have the same bookkeeping methods, such as cash or accrual basis.
- They strive to ensure that the financial records and statements are prepared with accuracy and provide a fair reflection of the financial position of an organization.
- The procedures for activities in accounting and auditing, such as tax compliance, are similar.
Differences Between Accounting and Auditing in Egypt
There are many differences between accounting and auditing in Egypt, including:
Points of Comparison | Accounting | Auditing |
Responsible person | Accountants | Auditors |
Period | Daily | Periodically. It is done on a monthly, quarterly, or yearly basis. |
Initiation | Starting at the end of bookkeeping. | Starting at the end of accounting. |
Governing Standards | Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS) | Generally Accepted Auditing Standards (GAAS), International Standards on Auditing (ISA), Code of Ethics for Professional Accountants |
Deliverables | Financial statements, such as income statements or profit and loss accounts, balance sheets, cash flow statements, etc. | Audit report that includes an opinion on the accuracy, reliability, and compliance of financial statements |
Purpose | Accountants prepare financial statements, bookkeeping, tax planning, and financial analysis and reflect the actual position, performance, and profitability of businesses. | Auditors verify financial statements, examine internal control systems, and provide independent assurance of the accuracy of financial information presented by accountants. |
Role of Technology
| Increasingly automated with the use of accounting software | Increasingly automated with the use of auditing software to identify potential errors and fraud in financial statements. |
And now you have learned everything you need to know about accounting and auditing in Egypt and the similarities and differences between both.
AHG Offers the Best Accounting and Auditing Services
At AHG, we understand the difference between accounting and auditing in Egypt and will offer the best accounting and auditing services ever you will not find anywhere else.
Our experienced accountants and auditors work collaboratively to ensure our clients receive comprehensive and tailored solutions that meet their unique needs and help them achieve their business objectives. We provide you with the experience, knowledge, and strategic planning that help you balance success today with what growth requires tomorrow and help achieve increased return on investment and better performance. Interested to learn more about our accounting and auditing services in Egypt? click here.