INTOSAI Highlights Egypt’s Advanced Model in Auditing Central Banks Amid Economic Challenges

As part of the 25th Congress of th Internation Organization of Supreme Audit Institutions (INTOSAI), held in Sharm El-Sheikh under the patronage of His Excellency President Abdel Fattah El-Sisi, a special session was held on the first technical theme titled “The Role of Supreme Audit Institutions in Auditing Central Banks and Government Activities during Financial and Economic Crises.” The session brought together presidents of supreme audit institutions, international experts, and representatives of regional organizations.

Participants included Mr. Managing Director, Strategic Planning and External Liaison at the U.S. Government Accountability Office (GAO); Ms. Laama Abdulaziz Al-Hammadi , Executive Vice President for Financial Audit and Compliance of Saudi Arabia; Mr. Mihalis Kozlovs, Member of the European Court of Auditors; and Mr. Ali Abdel Aal, Head of Sector at the Accountability State Authority of Egypt (CAO).

At the beginning of his speech, Counselor Mohamed El-Faisal Youssef, President of Accountability State Authority of Egypt and President of INTOSAI, emphasized that financial and economic crises represent a real test of a country’s ability to manage its public financial resources efficiently and transparently. He stressed that supreme audit institutions are now required to play broader roles beyond merely reviewing financial procedures, they are responsible for assessing the effectiveness of government interventions and their contribution to promoting growth, stability, and protection of the most vulnerable groups.

He pointed out that the key question supreme audit institutions should ask in this context is: Were the vast government subsidies and funds spent during financial crises directed to their intended purposes? Or did part of them leak to groups not targeted for protection? Moreover, did these financial interventions achieve their intended outcomes and truly contribute to growth and stability? He added that such comprehensive and in-depth perspectives should be central to the agenda of supreme audit institutions to prevent the escalation of crises, mitigate their impacts, and strengthen public trust in state institutions.

The INTOSAI President explained that modern auditing goes beyond examining figures and data. It now includes impact evaluation using macroeconomic analysis tools, artificial intelligence, and big data analytics, which enable the presentation of accurate insights to policymakers, helping them formulate more efficient fiscal and monetary policies.

He further stated that the Egyptian experience represents an advanced model in this field, as the Accountability State Authority of Egypt audits the Central Bank of Egypt and government activities related to economic crises, striking a balance between respecting the independence of the central bank and maintaining objective oversight over public resource management.

He emphasized that this balance ensures the protection of public funds without undermining monetary policy independence, and that such an approach should be reinforced within the INTOSAI community through knowledge exchange and the development of auditing methodologies.

For his part, Accountant Mohamed Abdel Ghani, Vice President of the Accountability State Authority of Egypt, emphasized the integration between monetary policy, managed by the Central Bank, and fiscal policy, administered by the government, during crises. He noted that Egypt was among the first countries to institutionalize this coordination through Article 48 of the Central Bank Law No. 194 of 2020, which established a joint coordination council between the two sides to harmonize economic decisions.

The Accountability State Authority of Egypt presentation also noted that Egypt’s recent experience has reflected this coordination through the implementation of comprehensive financial and social packages, including the “Decent Life” (Hayah Karima) initiative for rural community development with total spending of around 1.4 trillion EGP; the “Takaful and Karama” program targeting low-income families, the elderly, and persons with disabilities with total spending of 41 billion EGP during 2024–2025; and the economic stimulus package launched during the COVID-19 pandemic worth 100 billion EGP to support affected sectors. In addition, spending on food and bread subsidies and bread amounted to about 134.15 billion EGP during fiscal year 2024/2025.

The Egyptian presentation explained that the CAO’s audits of these initiatives were conducted within its legal mandate through financial, performance, and compliance audits. These reviews yielded practical recommendations that were implemented by the relevant authorities, resulting in improved internal control efficiency and a more effective allocation of public resources in line with national priorities.

The session also discussed Egypt’s experience in auditing the Central Bank’s initiatives to mitigate crisis impact, such as financing programs for Small and Medium Enterprises (SMEs) and affected sectors during the pandemic totaling 100 billion EGP, as well as support programs for industrial, agricultural, and new and renewable energy activities amounting to around 90 billion EGP. It also covered credit restructuring initiatives aimed at supporting distressed clients and preserving their financial stability.

In conclusion, speakers agreed that the increasing complexity of audit risks during financial and economic crises requires supreme audit institutions to develop their operational tools and field methodologies, while strengthening cooperation among INTOSAI member institutions to exchange knowledge and modernize auditing mechanisms. This, they affirmed, ensures high-quality audit reports, reliable results, and reinforce principles of transparency, accountability, and public trust in state institutions.