Auditing in Emerging Economies: A Comparative Study of Algeria and BRICS Nations for Regulatory Alignment

Authors : Ayachi Yousra, Rima Dafri

Pages : 513-533

Doi:10.29249/selcuksbmyd.1512464

View : 57 | Download : 49

Publication Date : 2024-11-29

Article Type : Research Paper

Abstract :Purpose: This study aims to identify necessary reforms in Algeria\'s auditing profession to facilitate its potential integration into the BRICS alliance. It seeks to compare Algeria\'s auditing landscape with that of BRICS countries, addressing the question: What improvements should Algeria introduce to its auditing profession in its bid to join BRICS? Importance/value: This research provides a novel comparative analysis of Algeria\'s auditing profession in the context of BRICS countries, offering specific recommendations for regulatory and professional development. The findings contribute to the understanding of auditing practices in emerging economies and provide a roadmap for Algeria to enhance its auditing profession, thereby increasing its attractiveness for foreign investment and improving its prospects for BRICS integration. Future research could explore the implementation challenges of these recommendations and their impact on Algeria\'s economic integration with BRICS nations. Methodology/approach: The research employs institutional theory and regulatory methods proposed by Bédard et al. (2002) as a theoretical framework. It utilizes content analysis of IFAC sources, literature review, and examination of Algerian regulations published in The Official Law Journals. A comparative, analytical approach is applied to assess the auditing systems across BRICS nations and Algeria. Findings: The study reveals significant disparities between Algeria\'s auditing profession and those of BRICS countries. While BRICS nations have adopted International Standards on Auditing (ISAs) and actively engage in global collaborations, Algeria\'s auditing standards are not mandatory and lack a comprehensive conceptual framework. Key areas for improvement include enhancing the role of supervisory bodies, mandating the application of Algerian Standards on Auditing, prioritizing ongoing auditor training, and fostering openness to international audit firms. Result: BRICS countries have advanced regulatory frameworks, mandatory adoption of ISAs, and strong international collaborations, while Algeria lags with voluntary standards, and limited training, Additionally, restrictions on international audit firms and weaker auditor accreditation further hinder Algeria\'s alignment with global best practices.
Keywords : Denetim Mesleği, BRICS, Düzenleyici Reformlar, Kurumsal Teori, Denetim Gözetimi