In a Financial System Stability Assessment conducted by the International Monetary Fund (IMF) in 2004, the IMF observed that, in general, auditing practices in Algeria are not at par with the international standards. Furthermore, local standards are not enforced effectively. The IMF pointed out that audit partnerships are "highly fragmented" and training is limited. As stated in a 2005 World Bank report, in the spring of 2003 the Bank completed a Report on the Observance of Standards and Codes (ROSC) on accounting and auditing in Algeria, using the International Financial Reporting Standards and International Standards on Auditing as the benchmarks for assessing national standards. However, this report has not yet been made publicly available.

General Overview

In a 2004 Financial System Stability Assessment conducted by the International Monetary Fund (IMF), the IMF observed that "auditing falls far short of international practice and the industry association does not effectively enforce even local standards" (p. 17). The report noted that a few companies were trying to achieve greater transparency and had been making efforts to improve auditing practices. The IMF pointed out that "accounting and audit partnerships are highly fragmented and training is limited" (p. 17). Algeria is not listed as a member on the International Federation of Accountants' website.

As stated in a 2005 World Bank report, in the spring of 2003 the Bank completed a Report on the Observance of Standards and Codes (ROSC) on accounting and auditing in Algeria using the International Financial Reporting Standards and International Standards on Auditing as the benchmarks for assessing national standards. However, this report has not been made publicly available.

The Principles

ISA 200 Objective and General Principles Governing an Audit of Financial Statements (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 210 Terms of Audit Engagements (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 220R Quality Control for Audits of Historical Financial Information (effective 2005)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 230R Documentation (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 240 The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements (effective 2004)

NC

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 260 Communications of Audit Matters With Those Charged With Governance (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 300 Planning an Audit of Financial Statements (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 320 Audit Materiality (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 402 Audit Considerations Relating to Entities Using Service Organizations (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 500 Audit Evidence (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 501 Audit Evidence - Additional Considerations for Specific Items (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 505 External Confirmations (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 510 Initial Engagements — Opening Balances (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 520 Analytical Procedures (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 530 Audit Sampling and Other Selective Testing Procedures (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 540 Audit of Accounting Estimates (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 545 Auditing Fair Value Measurements and Disclosures (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 550 Related Parties (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 560 Subsequent Events (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 570 Going Concern (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 580 Management Representations (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 600 Using the Work of Another Auditor (effective)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 610 Considering the Work of Internal Auditing (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 620 Using the Work of an Expert (effective 2005)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 700 The Auditor’s Report on Financial Statements (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 701 Modifications to the Independent Auditor's Report (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 710 Comparatives (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 720 Other Information in Documents Containing Audited Financial Statements (effective 2004)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.

ISA 800 The Auditor’s Report on Special Purpose Audit Engagements (effective 2006)

II

There is insufficient publicly available information as to Algeria's compliance with this principle.