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    Country by Country Financial Reporting and Auditing Framework

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    Algeria – Hamza and associates (prepared March 2015)

     

    Preparation of and Filing of Statutory Financial Statements

    Commercial companies with legal personality (Joint-Stock Company, Limited Liability Partnership, Single Owner Limited Liability Company, General Partnership, limited partnership/by share) - banks, branches of banks and financial institutions registered in Algeria are required to prepare annual financial statements and file these at The National Center of Trade Register.

     

    Industrial and Commercial Public Institutions, branches of foreign companies operating in Algeria, companies groupings and municipal enterprises are required to prepare annual financial statements but don't have to file these at The National Center of Trade Register.

     

    Commercial companies are required to file their financial statements at The National Center of Trade Register within 1 month after the general assembly meeting which should be held during the period from January 1 of the year following the accounting reference date until 30 June (the deadline for holding the meeting of the assembly) of the same year.

     

    Financial institutions and banks are required to file their financial statements at The National Center of Trade Register within 6 months of the accounting reference date.

     

    All companies are required to prepare full financial statements.  However, certain small companies whose turnover, workforce, and the activity don't exceed certain thresholds have an option to file abbreviated financial statements only at The National Center of Trade Register.  Abbreviated financial statements provide for some reduced disclosure.

     

    Large and medium-sized groups are required to prepare consolidated financial statements.  However, certain small groups can take advantage of the option to prepare entity-only financial statements.

     

    Financial Reporting Framework

    Except some small companies which can take advantage of reduced disclosure by preparing their financial statements, all companies in Algeria are required to prepare their financial statements in accordance with the algerian Financial Accounting System (FAS). It is largely based on the International Financial Reporting Standards (IFRS).

     

    Audit Requirements for Companies and Partnership Registered in Algeria

    In Algeria the following companies/Partnership must have an audit:

    • A public company;
    • A joint-stock company;
    • A Limited Liability Partnership (LLP) whose turnover exceeds 10 million Algerian dinars.

    Audit Exemption

    Subject to the above, most small private limited companies/LLPs may not need an audit of their annual accounts - unless the company's articles of association say it must or enough shareholders ask for one.  A small company/LLP is one with an annual turnover of no more than 10 million DA.

     

    Audit Appointment, Rotation and Joint Audits

    Audit appointments in Algeria are not for a fixed period. Mandatory rotation of audit firms is for 3 years renewable once. Joint audits are for large and medium-sized groups which establish consolidated financial statements, banks and financial companies.

     

    Auditing Standards

    Hamza and Associate, the Algerian member firm of Crowe Horwath International, are required to undertake their audit and express an opinion on the financial statements in accordance with applicable law.

     

    Ethical Framework

    Hamza and Associate is bound by the Code of Deontology of the National Council of Accounting.

     

    Audit Regulation

    Hamza and Associate is subject to the following external and internal monitoring processes with regard to their audit practice:

     

    External monitoring

    The firm is subject to external review by the Quality Control Commission unit of the National Council of Accounting. The Quality Control Commission conducts annual inspections.

     

    Internal monitoring

    There are annual monitoring procedures known as Quality Control.

     

    Transparency Report

    Hamza and associate does not have any rules relating to transparency reports.


     


    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292


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