Algeria

The requirements for the preparation of financial statements are established by Law No. 7-11 of 25/11/2007. Under the Law, the Ministry of Finance (MoF) is responsible for establishing accounting and auditing standards.

The MoF issued Order 26/07/2008 which specifies the accounting rules and standards, the contents, and the presentation of the financial statements, as well as the nomenclature and rules of operation of the accounts. 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). All companies, except for very small enterprises, are required to prepare financial statements in accordance with Algerian GAAP except for very small enterprises for which a simplified set of standards has been developed. IFRS for Small-and Medium-Sized Entities has not been adopted and there are no plans to do so.

Ministry of Finance No. 103/SPM/94 of 02/02/19 establishes the requirements for mandatory audits of all companies. As of the date of this assessment, Algerian Auditing Standards (NAA) are based on the 2016 version of the ISA. The Ordre des Experts Comptables Algériens (ONECCA Algeria) reports that NAA is in the process of updating the standards to converge with the 2022 version of the ISA.

In accordance with Law 10-01 of 29/06/2010, Chartered Accountants, Certified Accountants, and Auditors, are regulated by the Ministry of Finance’s National Council of Accounting (CNC). CNC established five commissions responsible for (i) licensing and membership, (ii) maintaining the registry for Chartered Accountants, Certified Accountants, and auditors, (iii) training, (iv) setting accounting & auditing standards, (v) quality control, and investigation and discipline.

The professional accountancy organizations (PAOs) in the jurisdiction support the Ministry of Finance through representation on the Ministry of Finance’s Quality Control Commission (QCC), and the Disciplinary & Arbitration (D&A) Commission for professional accountants.

To pursue an accountancy designation, individuals must first graduate from one of the universities approved by the Ministry of Finance in accounting. These graduates may then apply to become members of one (or all) of the three national PAOs to obtain a Chartered Accountant qualification from Ordre des Experts Comptables Algériens (ONECCA Algeria), a Certified Accountant qualification from Organisation Nationale des Comptables Agréés (ONCA), or an Auditor qualification from Chambre Nationale des Commissaires aux Comptes (CNCC).

To pursue the Chartered Accountant qualification from ONECCA Algeria, candidates must (i) have a bachelor’s degree in accounting; (ii) have Algerian citizenship; (iii) complete a two-year internship under a Chartered Accountant; and (iv) pass the Final Examination in Accounting Expertise organized jointly by the Ministry of Higher Education and Scientific Research and the Ministry of Finance (Executive Decree 74-11 of 16/02/2011). The final examination consists of a written and an oral exam. During the oral examination, the candidate presents their eight internship reports to a practicing Chartered Accountant and a university professor. Those who successfully pass the PAO education programs are eligible to register with ONECCA Algeria and practice accounting or auditing with the Chartered Accountant title.

To pursue the Certified Accountant qualification from Organisation Nationale des Comptables Agréés (ONCA)), or the Auditor qualification from Chambre Nationale des Commissaires aux Comptes (CNCC)), candidates must fulfill the same requirements as Chartered Accountants listed above, in addition to three years of practical experience as an accountant (for ONCA) or as an auditor (for CNCC) in a firm.

The differences in responsibilities of ONECCA Algeria’s members (Chartered Accountants) vs ONCA members (Certified Accountants) vs CNC members (Auditors) are outlined below:

• Chartered Accountants are responsible for (i) organizing, verifying, correcting, and analyzing accounts; (ii) consolidation of accounting; (iii) financial and accounting audits; (iv) accounting entries and changes in assets; (v) preparing social, tax, and administrative declarations; (vi) assisting clients with different administrations; (vii) assisting in preparing financial statements; and (viii) certifying annual accounts.
• Certified Accountants are responsible for (i) accounting entries and changes in assets; (ii) preparing social, tax, and administrative declarations; (iii) assisting clients with different administrations; and (iv) assisting in preparing financial statements.
• Auditors are responsible for certifying annual accounts.

There is no independent audit oversight system in Algeria. Auditors are regulated by the Ministry of Finance (MoF) and national professional accountancy organizations (PAOs) as stipulated under Law 10-01 of 29/06/2010 and described in the Regulation Section.

There are three professional accountancy organizations (PAOs) in Algeria that are recognized by Law No. 10-01 of June 29, 2010. All three PAOs are mandatory membership organizations that support the Ministry of Finance through representation on the Quality Control Commission (QCC), and the Disciplinary & Arbitration (D&A) Commission for professional Accountants.

Ordre des Experts Comptables Algériens (ONECCA Algeria)

ONECCA Algeria is a mandatory membership organization for Chartered Accountants. ONECCA Algeria members (Chartered Accountants) provide a comprehensive range of financial services, including accounting, audit, and advisory services, regulated under the provisions of the Law. However, ONECCA’s Chartered Accountants who seek to practice audit, must also be members of Chambre Nationale des Commissaires aux Comptes (CNCC).

Specific responsibilities of Chartered Accountants include (i) organizing, verifying, correcting, and analyzing accounts; (ii) consolidation of accounting; (iii) financial and accounting audits; (iv) accounting entries and changes in assets; (v) preparing social, tax, and administrative declarations; (vi) assisting clients with different administrations; (vii) assisting in preparing financial statements; and (viii) certifying annual accounts.

Organisation Nationale des Comptables Agréés (ONCA)

ONCA is a mandatory membership organization for Certified Accountants. Specific responsibilities of Certified Accountants include (i) accounting entries and changes in assets; (ii) preparing social, tax, and administrative declarations; (iii) assisting clients with different administrations; and (iv) assisting in preparing financial statements.

Chambre Nationale des Commissaires aux Comptes (CNCC)

CNCC is a mandatory membership organization for auditors. This institution brings together individuals or legal entities who are authorized and qualified to practice as statutory auditors. Auditors in the jurisdiction are responsible for certifying annual accounts.

The general framework for quality control in Algeria is based on the objectives defined by Law 10/01 of June 29, 2010, concerning the professions of Chartered Accountants, Statutory Auditors, and Certified Accountants, as well as Executive Decree No. 11-24 of January 27, 2011, which establishes the composition, organization, and operating rules of the Ministry of Finance’s National Council of Accounting (CNC).

The CNC established the Quality Control Commission (QCC) in line with Article 22 of the Executive Decree No. 11-24. By Order No. 26 of March 3, 2022, the QCC includes eight Chartered Accountants that are members of ONECCA Algeria that serve three-year terms.

The QCC is responsible for (i) developing working methods in terms of service quality; (ii) providing opinions and proposing regulatory texts related to quality; (iii) ensuring the quality of audits entrusted to accounting professionals; (iv) establishing standards for the organization and management of accounting firms; (v) establishing procedures for quality control of firm services; (vi) monitoring compliance with independence and ethical rules; and (vii) compiling a list of controllers chosen from professionals to carry out quality control missions.

The work carried out so far has included the adoption of quality control standards, followed by quality management standards, which are currently being validated by the Ministry of Finance.

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.

ONECCA Algeria completed a self-assessment of the QA review processes and indicated several gaps in alignment with SMO 1 requirements.

Current Status: Partially Adopted

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.

To pursue an accountancy designation, individuals must first graduate from one of the universities approved by the Ministry of Finance in accounting. These graduates may then apply to become members of one (or all) of the three national PAOs to obtain a Chartered Accountant qualification from Ordre des Experts Comptables Algériens (ONECCA Algeria), a Certified Accountant qualification from Organisation Nationale des Comptables Agréés (ONCA), or an Auditor qualification from Chambre Nationale des Commissaires aux Comptes (CNCC).

To pursue the Chartered Accountant qualification from ONECCA Algeria, candidates must (i) have a bachelor’s degree in accounting; (ii) have Algerian citizenship; (iii) complete a two-year internship under a Chartered Accountant; and (iv) pass the Final Examination in Accounting Expertise organized jointly by the Ministry of Higher Education and Scientific Research and the Ministry of Finance (Executive Decree 74-11 of 16/02/2011). The final examination consists of a written and an oral exam. During the oral examination, the candidate presents their eight internship reports to a practicing Chartered Accountant and a university professor. Those who successfully pass the PAO education programs are eligible to register with ONECCA Algeria and practice accounting or auditing with the Chartered Accountant title.

To pursue the Certified Accountant qualification from Organisation Nationale des Comptables Agréés (ONCA)), or the Auditor qualification from Chambre Nationale des Commissaires aux Comptes (CNCC)), candidates must fulfill the same requirements as Chartered Accountants listed above, in addition to three years of practical experience as an accountant (for ONCA) or as an auditor (for CNCC) in a firm.

The differences in responsibilities of ONECCA Algeria’s members (Chartered Accountants) vs ONCA members (Certified Accountants) vs CNC members (Auditors) are outlined below:

• Chartered Accountants are responsible for (i) organizing, verifying, correcting, and analyzing accounts; (ii) consolidation of accounting; (iii) financial and accounting audits; (iv) accounting entries and changes in assets; (v) preparing social, tax, and administrative declarations; (vi) assisting clients with different administrations; (vii) assisting in preparing financial statements; and (viii) certifying annual accounts.
• Certified Accountants are responsible for (i) accounting entries and changes in assets; (ii) preparing social, tax, and administrative declarations; (iii) assisting clients with different administrations; and (iv) assisting in preparing financial statements.
• Auditors are responsible for certifying annual accounts.

All Chartered Accountants, Certified Accountants, and Auditors must remain members in good standing of the respective PAOs in order practice. However, as of the date of this assessment, CPD is not mandated by any of the PAOs. The Ministry of Finance established a commission to review all laws and executive decrees relevant to the profession. It is expected that the revision of the laws / executive decrees will be completed late in 2024 or early 2025 to include mandatory CPD requirements.

In 2024, ONECCA Algeria completed a gap analysis against the 2019 revised IES which determined partial alignment with the requirements at the jurisdiction level.

Current Status: Partially Adopted

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.

Current Status: Partially Adopted

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.

Current Status: Partially Adopted

In 2018, the government adopted the Organic Law on Finance Laws on Public Financial Management (evidence 1) to improve public financial management in Algeria and to ensure greater accountability. The law specifically identifies accrual accounting in addition to cash accounting as the accounting standard to be used by the government.

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

Current Status: Adopted

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. The CNC established the Disciplinary & Arbitration (D&A) Commission for professional accountants to (i) develop procedures related to discipline, arbitration, and conciliation; (ii) review the files related to disciplinary cases involving any violation or breach of professional, technical, or ethical rules committed by professionals; (iii) prepare draft opinions on provisions regarding arbitration and discipline; (iv) fulfil an essential role in providing advice, prevention, conciliation, and arbitration services during conflicts; and (v) perform the task of prevention and mediation between professionals.

The Commission comprises twelve members: one president, one rapporteur, six regular assessors (two Chartered Accountants, two Certified Accountants, and two Auditors); and four substitute assessors appointed under the same conditions as the regular assessors. A representative from the General Secretariat of the CNC provides the secretariat of the Commission.

The Commission adheres to the following procedure before proposing a sanction:

• Receipt of a non-anonymous request
• Study of the admissibility of the request
• Summons with acknowledgment of receipt of the person concerned
• Assessment of the seriousness of the fault committed and decision on the appropriate sanction after investigation.

The decision of the Commission may be the subject of an appeal before the Council of State on the part of the interested party, within one month following notification of the decision.

When final, decisions suspending or expelling professional accountants are published without reason in at least two national newspapers in French and the national language. When expelled, the person cannot exercise his/her profession either on a freelance basis or as an employee. Suspensions and expulsions of professional accountants are entered in the register of Chartered Accountants, Certified Accountants, and Auditors maintained by CNC; however, warnings and reprimands are not recorded in the register.

In 2024, Ordre des Experts Comptables Algériens (ONECCA Algeria) conducted a self-assessment of the I&D system against SMO 6 requirements and reports that it is partially aligned. 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.

Current Status: Partially Adopted

The Law 07-11 of 25 November 2007 on accounting establishes the Ministry of Finance (MoF) as the accounting standard-setter. This law entered into force as of 2010 and aimed to harmonize the Algerian accounting framework with IFRS.

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).

Ordre des Experts Comptables Algériens (ONECCA Algeria) reports that as of the date of this assessment, the Commission is focusing on prioritizing converging with IFRS 15 and IFRS 16.

Current Status: Partially Adopted

Relevant Organizations

• Algeria Ministry of Finance

• Chambre Nationale des Commissaires aux Comptes (CNCC)

• Organisation National des Comptables Agrées (ONCA)

• Ordre National des Experts-Comptables (ONECCA Algeria)

• National Office of Examinations and Competitions

Relevant Legislation

• Decree No. 11-25 of January 27, 2011 on establishing the composition, responsibilities, and operating rules of the National Council of the National Order of Chartered Accountants
• Decree No. 11-30 of January 27, 2011 on setting the conditions and terms of approval for the exercise of the profession of Chartered Accountant, Certified Accountant, and Auditor
• Law No. 10-01 of June 29, 2010 relating to the professions of Chartered Accountant, Certified Accountant, and Auditor

Relevant Publications

• Algeria: Business Environment
• ONECCA Algeria SMO Action Plan, January 2024