Institute of Authorized Chartered Auditors of Albania

The Law on Statutory Audit and Organization of the Accountancy Profession No. 10091 (first issued in 2009, amended in April 2016, and amended again in January 2025) states that the responsibility for conducting quality assurance (QA) reviews of statutory audits is vested with the Public Oversight Board (POB), with an option to delegate QA reviews of audits of non-public interest entities (PIEs) to the Albanian Institute of Authorized Chartered Auditors (IEKA). In 2025, authority was delegated to IEKA to conduct reviews of non-PIEs. IEKA has appointed two inspectors who have attended seminars held by the World Bank together with the inspectors of the POB.

Prior to the legislative revisions in 2016, IEKA was responsible for the conduct of all QA reviews. It had established and implemented its QA review system that was in line with the requirements of SMO 1 and will continue to use these procedures for reviews of non-PIE audits. IEKA has translated the relevant standards – ISQM 1, 2, and ISA 220 (revised) – for application.

The institute reports that it provides support to its members with the implementation of QM standards and has developed tools and conducted trainings for the reviewers and members to better understand QA review procedures and why inspections are important in ensuring the quality of services delivered.

IEKA’s contribution to the development of a QA review system in the jurisdiction and its willingness to resume the reviews of non-PIEs are commendable. If not already done so, it is recommended that IEKA be informed of the QA review results conducted by the POB in consideration when developing its CPD programming.

Current Status: Review & Improve

Under the oversight of the Public Oversight Board (POB), which overall is responsible for certification of auditors, IEKA is responsible for implementing initial and enforcing continuous professional development (CPD) requirements for auditors that are established in the law. In particular, IEKA is responsible for developing educational programming for auditors, verifying practical experience, and enforcing CPD requirements.

In 2019, IEKA launched a new model for education of auditors that is based on extending university education to professional settings. The new approach involves integration of educational programming delivered by higher education institutions (HEIs) and IEKA. To achieve this objective, IEKA worked over several years to align its curricula with international benchmarks and to assist HEIs to align their programs with the IEKA professional program at the basic and intermediate level. In 2019, an upgraded curriculum fully aligned with the 2019 IES was introduced that was developed as part of the World Bank Corporate Financial Reporting Enhancement Project. Within the new system, in addition to HEIs classes, candidates attend professional courses delivered by IEKA. To complete the full transition to the new model, IEKA is developing a system for recognition or accreditation of local HEIs and other international programs.

Certification/examination of professionals is conducted by the Examination Commission under the POB. The Commission comprises five members (representing the Ministry of Finance, Ministry of Economy, National Accounting Council, IEKA and one representative from the PAO for accountants). IEKA indicates that through the Commission assessments are undertaken in line with IES 6.

IEKA is also involved in verifying practical experience requirement for aspiring auditors established by the law, which requires a minimum three years of practical experience with a reputable statutory auditor or audit firm recognized by the IEKA. During the three years, the candidate must perform at least 600 hours of work in audit engagements. Reports from the employer on the candidate’s progress are submitted to the IEKA every six months.

IEKA members are required to complete at least 120 hours of CPD over a three-year period (40-60 hours per year). IEKA indicates that the content of CPD programming for its members is in line with the IES requirements. Compliance with the CPD requirement is monitored. The POB reviews fulfillment of CPD requirements and takes necessary measures in case of non-compliance.

IEKA’s contribution to the professional development of auditors in Albania over the years and the introduction of the new curriculum that is fully aligned with the 2019 IESs are commendable. IES 2, 3, and 4 have recently been revised to embed sustainability throughout aspiring professional accountants' training and IES 6 has been revised to reflect global changes, modernizing and clarifying the standard to ensure its relevance. All revisions are effective July 1, 2026. IEKA is encouraged to continue to collaboration with the POB and universities to embed these revised standards into local education requirements.

Current Status: Review & Improve

With ISAs adopted by law in Albania, IEKA is responsible for their translation into Albanian. A joint committee was set up between IEKA and Society of Certified Accountants and Auditors of Kosovo (SCAAK) to implement the translation process of new or revised ISA as they become available. The Albanian translation of the 2018 IAASB Handbook is being applied. IEKA and SCAAK have translated the 2021 Handbook of International Quality Control, Auditing, Review, other Assurance, and related services pronouncements which is pending approval by the POB. ISQM 1, 2, and ISA for LCE have been translated separately for distribution amongst its members. In addition, the committee has also translated both parts of the ISA Guide for SMEs.

ISA are included in the institute’s educational programming, which is reportedly updated to reflect developments in the international standard-setting. In 2019, IEKA launched a new model for education of auditors and brought its curriculum fully in line with the IES, including requirements related to auditing.

IEKA also reports that it continuously supports its members with the implementation of the standards by issuing implementation guidance, organizing continuing education training (e.g., recent trainings have included ISA 315 (revised), ISA 250, quality management), and disseminating information on the developments in the international standard-setting area.

There continues to be a time lag between the issuance of new and revised ISA and their translation for application in Albania. IEKA, in cooperation with SCAAK, is encouraged to consider strengthening its process that provides for a timely translation of the most recent IAASB pronouncements.

Current Status: Review & Improve

With the IESBA Code adopted by law in Albania, IEKA is responsible for the translation of the IESBA Code under the oversight of the Public Oversight Board (POB). A joint committee was set up between IEKA and Society of Certified Accountants and Auditors of Kosovo (SCAAK) with the main objective to implement the translation process of international standards. The 2023 International Code of Ethics for Professional Accountants has been translated for POB approval.

IEKA reports that it has incorporated the Code into its initial and continuing professional development programs. In 2019, IEKA launched a new model for education of auditors, and separate module on professional and business ethics covering the fundamental concepts and requirements of the IESBA Code was introduced.

IEKA has also created a Professional Standards and Ethics Committee —responsible for addressing issues and requests for interpretation regarding the applicability of professional standards and the Code of Ethics. It also maintains communication and cooperation with the POB and the Financial Intelligence Unit of Albania (FIU-Albania) which supervises AML and CFT activities in the jurisdiction.

IEKA, in cooperation with SCAAK, is encouraged to maintain its timely translations of the most recent IESBA pronouncements.

Current Status: Review & Improve

With no responsibility for the adoption of public sector accounting standards in the country, IEKA reports that it supports the adoption of IPSAS in the jurisdiction and disseminates information on IPSAS to relevant authorities. There are PFM reforms underway to adopt and implement accrual-basis standards that are based on IPSAS. With funding from the Swiss State Secretariat for Economic Affairs (SECO), the World Bank is supporting the MoF in the implementation of the reform strategy including translation of IPSAS and organizing training from Chartered Institute of Public Finance and Accountancy (CIPFA). An estimated timeframe for the first-time implementation of IPSAS is 2027.

The institute reports that it is engaging with the MoF regarding training for public sector staff. Based on the trainings organized by CIPFA, IEKA is designing continuing education programs that would help maintain the professionalization of public sector accountants. IEKA also publishes information on the developments occurring in the field of public sector accounting via its website and the magazine.

IEKA has demonstrated that, within the scope of its authority, it is committed to meet the SMO 5 obligations. 

Current Status: Sustain

The enforcement function for auditors, including IEKA’s members, has been assigned to the Public Oversight Board (POB).

Previously, IEKA was responsible for I&D of auditors and has established a system that was reported to be fully in line with the requirements of SMO 6. Following the transfer of the overall legal responsibility, IEKA reports that it continues to operate an Investigation Committee. This committee investigates its members and forwards the cases to the POB, which imposes sanctions involving removal or practicing rights for any regulatory breaches by IEKA’s members.

IEKA indicates that it disseminates information on the outcomes of the disciplinary actions and publishes relevant information on I&D procedures applicable to IEKA members on its website and magazine. It also posts information on how to raise complaints.

Effective and efficient I&D procedures are foundational to maintaining public trust and confidence in the profession. As the POB has now assumed the enforcement authority for auditors, IEKA is encouraged to i) continue its cooperation and coordination with the POB to ensure that the enforcement system in practice meets the SMO 6 benchmark and ii) to take any educational or punitive action needed as a result of POB findings.

Current Status: Review & Improve

As IEKA has no direct responsibility for the adoption of accounting standards, it focuses on assisting the National Accounting Council (NAC)—the entity responsible for the setting accounting standards—in the process of adoption of national standards as well as translation and implementation of IFRS, which have been adopted for application in Albania for public interest companies.

In 2009, IEKA issued a convergence statement whereas it declared its intent to promote the adoption of IFRS without modification and to support the NAC in its standard-setting activities. In an ongoing manner, IEKA disseminates information on the international developments in the area, provides comments on the IASB Exposure Drafts, assists the NAC in drafting national accounting standards and circulating NAC’s Exposure Drafts, and contributes to the translation of IFRS, when needed.

IEKA also supports IFRSs implementation by its members by providing training, organizing seminars, and publishing articles in its magazine on the new and revised National Accounting Standards (NASs) and differences between the NASs and IFRS.

IEKA has demonstrated that, within the scope of its authority, it fulfills the SMO 7 obligations and is committed to ongoing improvement.

Current Status: Sustain