Audit Quality & Corporate Governance in Egypt

A new international study shows that strong audit quality boosts segment disclosure in Egypt.

Joint audits and gender-diverse boards drive greater transparency.

Kozman & Co. explains what these findings mean for your business.

See how our services help you stay compliant with IFRS 8 and enhance your reporting strategy.

Audit Quality and Corporate Governance in Egypt

What the Latest Research Tells Us

A recent study highlights the critical role of audit quality and governance in shaping segment disclosure among Egyptian listed companies, reviewing data from 2015 to 2023, the research shows that firms audited by top-tier auditors, especially those using joint audit arrangement, and companies with gender-diverse, independent boards achieve stronger disclosure outcomes.

These insights come at a crucial time as Egypt continues to align with IFRS 8 standards, while regulators step up their focus on transparency in financial reporting.

The study also flagged key governance challenges: companies with military-background or foreign directors, or those receiving certain audit opinions, tend to disclose less, this underlines the importance of governance reforms and stronger audit oversight.

How Kozman & Co. | SBC Global Adds Value:

In response to these developments, Kozman & Co. remains committed to delivering best-in-class audit and advisory solutions that support clients across governance, compliance, and financial performance:

Audit & Assurance Services: Independent audits aligned with regulatory and market expectations, including segment-level reporting under IFRS 8.

Tax Advisory Services: Ensuring segment disclosures support effective transfer pricing, planning, and compliance with both local and international tax rules.

Mergers & Acquisitions: Transparent segment reporting is critical in deal-making. We assess performance and risks during valuation, due diligence, and integration.

Business Modelling: Segment-focused models and forecasts to help visualize financial performance across products, markets, and services.

Financial Restructuring: Using disclosure strategies to strengthen stakeholder confidence, support turnarounds, and meet regulatory requirements.

Internal Audit Services: Risk-based audits that enhance disclosure controls and governance frameworks for greater transparency.

A Practical Checklist for SMEs and Large Corporations:

✔ Are you working with a high-quality external audit partner?

✔ Does your board reflect strong governance (e.g., independence, gender diversity)?

✔ Are you using business modeling to define and manage segments?

✔ Do you evaluate how disclosure affects your tax position?

✔ Are your statements aligned, or preparing to align with IFRS 8?

If any of these answers is “no,” Kozman & Co. | SBC Global can help you move forward.

Looking Ahead:

Egypt’s shift toward greater transparency and segmented reporting is only beginning, whether you’re a family-owned business or a listed corporation, strategic preparation is key, regulators are expected to tighten scrutiny further, especially around IFRS 8 compliance and tax alignment.

Kozman & Co. | SBC Global is ready to guide you through that journey.

About Kozman & Co. | SBC Global

For over 55 years, we’ve supported clients in Egypt and across the region with trusted audit, tax, and consulting services, as an independent member of SBC Global Alliance, we bring the strength of global standards together with local market knowledge.