The challenges that the External Auditor in the light of applying fair value in Algeria An Empirical Study a sample of audit offices in Algeria

Abstract

The research aims to describe the challenges that the External Auditor may face in trying
to audit fair value estimates.so, we have tried to identify the concept of fair value, how to measure
it, and to determine the impact of applying fair value accounting on the risk assessment of the
audit. The study also identified the requirements for auditing fair value estimates in accordance
with International Auditing Standard No. ISA 540, we tried to test the extent to which auditors in
Algeria have accepted fair value accounting and are aware of the most important challenges they
may face in auditing fair value estimates.
The study's results showed that auditors in Algeria are aware of and understand the concept of fair
value and related issues as well as the most important challenges that may be encountered when
auditing fair value estimates. However, the respondents' opinions were more consistent in
maintaining the historical cost accounting in the measurement process and not going towards the
application of fair value accounting, due to the absence of an efficient financial market in Algeria