ORDRE NATIONAL DES EXPERTS-COMPTABES – Algérie

ONECCA Algeria does not have any legal responsibility in this area since the Ministry of Finance’s National Council of Accounting (CNC) has this mandate. CNC established the Quality Control Commission (QCC) which includes eight Chartered Accountants that are members of ONECCA Algeria that serve three-year terms. ONECC Algeria reports that the QA review system is operational, however, it remains unclear when it became operational and how many reviews have been completed to date. Furthermore, ONECCA Algeria completed a self-assessment of the QA review processes and indicated several gaps in alignment with SMO 1 requirements (see 2024 SMO Action Plan).

ONECCA Algeria included plans in its 2024 SMO Action Plans to support the QCC with aligning with SMO 1 requirements. Between 2024-2025, ONECCA Algeria will meet with national quality assurance review regulators in neighboring countries (e.g., the Independent Regulatory Board for Auditors in South Africa) for knowledge-sharing purposes. It also will continue to organize professional development sessions for its members, including topics related to QA and ISQM 1 & ISQM 2.

ONECCA Algeria also plans to translate and contextualize the PAFA Firm ISQM Readiness Assessment by March 2024, and request firms to conduct their self-assessments by June 2024. It also plans to conduct an analysis of the submitted self-assessments by September 2024. Based on the results of the analysis, ONECCA Algeria will develop and implement a two-year plan to address identified gaps through training and other activities.

ONECCA Algeria should provide an update on its planned activities in 2024. It also encouraged to clarify when the QA review processes became operationalized, and how many reviews have been completed.

Current Status: Execute

Law 10-01 of 29/06/2010, along with Executive Degree No. 08-265 of 19/08/2008 and Executive Decree 74-11 of 16/02/2011 establish initial and continuing professional development (IPD and CPD, respectively) requirements in Algeria. Universities, the Ministry of Finance, and the Ministry of Higher Education and Scientific Research share responsibility for enacting the requirements.

ONECCA Algeria plans to establish a committee what will conduct an assessment against the 2019 revised IES in Algeria and advise the Ministry of Education and Scientific Research / Ministry of Finance on the incorporation of IES requirements in curriculum development.

In March 2023, ONECCA Algeria signed an agreement with the University of Algiers to establish a professional master's degree program in accounting expertise to strengthen the quality of professionals starting from 2024. Individuals with a specific three-year bachelor’s degree will be required to pass an oral and written assessment to be admitted to the two-year master’s degree, which will be taught by Chartered Accountants and university professors. After completing the master’s degree, they will be required to complete a two-year internship under a Chartered Accountant (which includes specified work experience and delivery of eight internship reports on topics relevant to the profession) and pass the Final Examination in Accounting Expertise. ONECCA Algeria will support the roll out of this master’s degree at the University of Algiers and progress agreements with other universities in Algeria from December 2024 onwards.

As of the date of this assessment, CPD is not mandatory for any professional accountant in the jurisdiction. Nevertheless, ONECCA Algeria is represented on the Ministry of Finance’s Commission and reports that it will continue to influence the Ministry to make CPD mandatory for all professional accountants in the jurisdiction by December 2025. In the meantime, ONECCA Algeria should continue to offer voluntary CPD to its members within the confines of the legal barriers to the extent possible.

Between 2024-2025, ONECCA Algeria plans to organize trainings for stakeholders in the accountancy ecosystem (e.g., Ministries, universities, specialized schools, etc.) to enhance the understanding of 2019 revised IES. It also plans to develop and conduct a survey by December 2024 to obtain an understanding of the training needs of accountancy teachers to develop a plan to strengthen their capacity in accordance with IES. ONECCA Algeria aims to implement this training program beginning from April 2025.

ONECCA Algeria is encouraged to collaborate with other stakeholders involved in the education of professional accountants in the jurisdiction as it completes the review of the national requirements against those of 2019 revised IES. It is also encouraged to continue raising awareness about the requirements of IES as well as the need to bring the national educational requirements in line with IES to the relevant authorities. The IES Checklist and the Accountancy Education E-Tool developed by IFAC may be used to conduct an assessment and to consider available implementation support materials. Subsequent steps might include ensuring IES 1-4 are considered / incorporated in the new master’s program curricula; ensuring the work experience and final examination align with IES 5 and 6; and continuing to advocate for mandatory CPD requirements (IES 7 and 8 where appropriate) for all professional accountants.

Current Status: Review & Improve

Law 10-01 of 29/06/2010 establishes the Ministry of Finance as the audit standard-setter in Algeria. The Ministry of Finance issued Decree No. 103/SPM/94 of 02/02/19 which establishes the National Council of Accounting (NCC) to develop Algerian Auditing Standards (NAA).

As of the date of this assessment, NAA are based on the 2016 version of the ISA. Nevertheless, the Ordre des Experts Comptables Algériens (ONECCA Algeria) reports that NCC is in the process of updating the standards to align with the 2022 version of the ISA.

ONECCA Algeria reports that it strives to support implementation of ISA by monitoring new and amended standards issued by the IAASB and disseminating information on updates to the standards through workshops, seminars, conferences, and magazine articles. ONECCA Algeria reports that it also notifies its members of exposure drafts issued by the IAASB to encourage those who have an interest in quality control, auditing, review, other assurance, or related standards, to voice their opinions. It contributes to the work of the PAFA Ethics, Audit & Assurance Technical Advisory Group, including responding to public consultations issued by IAASB.

ONECCA Algeria incorporates ISA in its voluntary continuing professional development program for its members. It also maintains ongoing processes to incorporate the changes in the international standard-setting into its programming in a timely manner.

Recognizing that adoption of ISA is not within the responsibilities of ONECCA Algeria, it is nevertheless encouraged to offer any technical support / capacity to the regulators with developing ongoing processes that will ensure timely adoption of new and revised ISAs as they become effective. ONECCA Algeria should consider activities to support its members with the implementation of the latest Handbooks.

Current Status: Review & Improve

Under Law 10-01 of 29 June 2010, the Ministry of Finance is responsible for establishing ethical requirements for the accountancy profession. As of the date of this assessment, the ethical requirements that are in place are not in line with the IESBA Code of Ethics, however, there are plans to converge by September 2024. In the meantime, ONECCA Algeria—a mandatory membership organization for Chartered Accountants— requires its members to adhere to the latest French translation of the IESBA Code of Ethics (2022 Handbook). It is unclear whether Organisation Nationale des Comptables Agréés (ONCA) and Chambre Nationale des Commissaires aux Comptes (CNCC) require their members to adhere to ethical requirements.

ONECCA Algeria reports that in December 2023, it met with the Ministry of Finance’s Commission responsible for reviewing the IESBA Code of Ethics in the context of Algeria. The intention is to converge with the IESBA Code of Ethics for the membership of three professional accountancy organizations and to incorporate the content in learning and development.

ONECCA Algeria reports to be encouraging universities to include the IESBA Code of Ethics in their accounting courses syllabi. In addition, ONECCA Algeria aims to raise awareness among professional accountants, academics, and other stakeholders about the IESBA Code of Ethics and resources available on the IFAC Knowledge Gateway.

It is in the public interest that all professional accountants adhere to the latest ethical requirements issued by the IESBA. ONECCA Algeria is encouraged to work with the Ministry of Finance to promote adoption of the IESBA Code as issued by IESBA for all professional accountants, and to clarify whether ONCPA and CNCC require their members to adhere to ethical requirements.

Current Status: Review & Improve

In accordance with Law N23-07 of June 21, 2023, the Ministry of Finance adopted IPSAS for all public sector entities and set 2026 as the target date for full implementation.

Although ONECCA Algeria is not responsible for setting standards in this area, it established a Public Sector Committee in 2023 to focus on training of Chartered Accountants in accrual based IPSAS. ONECCA Algeria also supports the Ministry of Finance by providing training content and technical assistance towards IPSAS implementation to improve financial reporting in the public sector.

ONECCA Algeria hosted the 4th PFM Conference for French-speaking countries in Africa in February 2024 with the Pan African Federation of Accountants (PAFA), Federation Internationale des Experts-Comptables Francophone (FIDEF), and IFAC, under the auspices of the African Union. The conference provides an opportunity for ONECCA Algeria to showcase its commitment to sound public financial management and to draw on international speakers to engage with senior government officials and ONECCA members while in Algeria. The Ministry of Finance expressed formal and full support for the conference.

In 2024, ONECCA Algeria indicates that it will submit a proposal to the government on how it can contribute to good governance, transparency, and accountability in the public sector. This is a part of PAFA’s initiative to pilot the Public Sector Engagement Framework for Professional Accountancy Organizations in French-speaking Countries. Algeria / ONECCA Algeria was selected as one of four pilots where its engagement with government will become a case study for other countries in Africa.

Finally, ONECCA Algeria is also involved in the international standard-setting process by offering comments on exposure drafts and other pronouncements issued by IPSASB, when deemed necessary. It also nominated Mr. Belaid Oukmoum for the IPSAS Consultative Advisory Group to influence the development of IPSAS at the global level and has identified a member of its committee to join the PAFA Public Value Management Technical Advisory Group.

Current Status: Sustain

Executive Decree 13-10 of 13/01/2013 provides the legal basis for the investigation and disciplinary (I&D) system for all accountancy professionals in Algeria.

In accordance with the Decree, the Ministry of Finance’s National Council of Accounting (CNC) is responsible for operating the I&D processes since 2013. ONECCA Algeria is among the twelve members of the CNC’s Disciplinary & Arbitration (D&A) Commission. According to ONECCA Algeria’s self-assessment of the I&D system against SMO 6 requirements, the following gaps were identified pertaining to (i) scope of the system; (ii) initiation of proceedings approach; (iii) disciplinary process; (iv) administrative process; (v) public interest considerations; (vi) liaison with outside bodies; and (vii) regular review of implementation and effectiveness.

Between January – December 2024, ONECCA Algeria plans to establish a committee of its own to review and address the gaps that were identified with SMO 6 requirements such as expanding from a complaints-based approach to a mixed complaints & information-based approach.

ONECCA Algeria also plans to publish information on the ONECCA Algeria website to provide guidance to the public on how to submit complaints by June 2024. It also plans to organize a workshop for its members to enhance awareness of the D&A system in the jurisdiction and incorporate such trainings as part of the continuing professional development program by December 2025.

I&D procedures that meet the SMO 6 benchmark are a key component to supporting public trust and confidence in the profession. It appears that ONECCA Algeria has identified gaps in the current processes in the jurisdiction, and as a matter of priority, should provide an update on how it is executing its plans to address those gaps towards alignment with SMO 6 requirements. ONECCA Algeria should continue to cooperate with the regulators to implement I&D procedures effectively and efficiently.

Current Status: Execute

The Law 07-11 of 25 November 2007 on accounting establishes the Ministry of Finance (MoF) as the accounting standard-setter. The MoF’s Executive Decree No. 11-24 of 27 January 2011 established the National Accounting Standards Commission to develop Algerian GAAP, which are largely based on the IFRS (with exceptions). The MoF established a taskforce in 2022 to further align Algerian GAAP with IFRS and address issues encountered in enforcing the GAAP. Due to the economic landscape of the jurisdiction, alignment to IFRS 15 and IFRS 16 has been prioritized. ONECCA Algeria intends to create its own committee to monitor IFRS developments and support the work of the MoF and advocate for direct adoption of IFRS.

ONECCA Algeria also focuses on implementation support and keeping its members aware of new and revised standards through updates that it publishes in its journal. It offers continuing professional development training as new standards are issued.

ONECCA Algeria is also involved in the international standard-setting process by offering comments on exposure drafts and other pronouncements issued by IASB & ISSB, when deemed necessary. It has identified a member to join the PAFA Public Value Management Technical Advisory Group.

Efforts to adopt IFRS Standards are strongly encouraged as part of bringing transparency, accountability, and efficiency to national, regional, and global markets. Therefore, ONECCA Algeria is encouraged to continue promoting and supporting the adoption and application of IFRS— as well as IFRS for SMEs to support Algeria’s SMEs—in the jurisdiction. The IFRS Foundation has French and Arabic translations of the IFRS readily available that the institute may consider sharing amongst its members and other stakeholders to support understanding and implementation.

Current Status: Review & Improve