CAIRO: The Egyptian Exchange (EGX) announced on Tuesday that the auditing of the financial lists of its registered companies is not within its powers or functions, saying the responsibility lies with auditors and shareholders, according to a statement on the EGX website.
The EGX is seeking to disclaim arguments that it should hold responsibility for mistakes on the financial lists of its registered companies, which offer their shares for trading on the EGX, including errors found within their budgets, total income reporting and financial receipts.
Its statement came in response to claims on a number of websites saying the EGX is responsible for the accuracy and integrity of financial statements of its registered companies, its statement said.
However, Saeed Hilal, executive manager for Al-Hilal Al-Saudi Company for Financial Securities, told The Cairo Post that the EGX’s statement is in response to claims made over the last few days about mistakes in the latest offerings at the EGX and errors in the financial lists of its registered companies.
Hilal said EGX’s auditors are independent but are not designated to audit company financial lists at the EGX. Such auditors must pass the examination of the Egyptian Financial Supervisory Authority (EFSA), which ratifies the budgets.
The EGX’s regulations require that its registered companies send quarterly financial lists to the EGX to be audited, and after that the audited financial lists are sent back to the EGX’s disclosure and transparency management to be ratified. At that point, Hilal said, the EGX has the right to halt trading on any erroneous shares and to order the re-auditing of financial lists.
The EGX’s statement also recommended that all companies read the regulations and laws of the capital markets before shifting responsibility to one of the managing parties.