IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

Institute of Authorized Chartered Auditors of Albania (IEKA)

Introduction

The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

Part 1:	Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
Part 2:	Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

Setting auditing, accounting, ethics, public sector and education standards; and
Regulating the accountancy profession.

Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

Questions or comments may be sent to complianceassessment@ifac.org.

Section 3 -- Member Body General Information

1. Country:

ALBANIA

2. Name of member body:

Or please specify name:
Albanian Institute of Authorized Chartered Auditors

3. Individual responsible for preparation:

Hysen CELA

4. Date member body became a member of IFAC:

Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

05 / 2000

Questions 5 - 22 are for internal use only

Section 3G -- Affiliations

23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):

FIDEF (Federation Internationale Des Experts-Comptables Francophone);
SEEPAD (South East European Partnership on Accountancy Development)

Section 4 -- Statutory Framework

Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

Section 4A -- The Companies Act or Commercial Code

The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

24. What is the full name of:

a). the Act or the Code:		Law �On commercial Companies�
b). the Enacting body:		Albanian Parliament
c). date the Act or Code came into force:		11 / 1992

25. How can IFAC obtain a copy of the Act or Code?

IFAC can obtain a copy of the Act through a request to IEKA.

26. Is the Act or Code available in English?

Yes

27. What are the types of entities covered by the Act or the Code?

Please check all that apply.

	Listed entities					Other (please specify):
	Private companies					Other (please specify):
	Governmental					Other (please specify):
	Not-for-profit					Other (please specify):

28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			Within the actual framework of the financial reporting all entities mentioned above have to follow the requirements prescribed by the Albanian Law on Accounting and National Accounting Plan. As of January 2006 a new Accounting Law came into force that is in line with IFRSs.
Private companies			The financial reporting framework requires the preparation and presentation of the Balance Sheet, Income Statement and other statements related with Fixed Assets and Depreciation, Debtors and Creditors and their timelines, Determination of the Net Profit and Profit Distribution, Employment Data Statement, and the Notes to the financial statements.
Governmental			The National Accounting Plan provides detailed guidance on the maintenance and preparation of accounting records and accounting books, in compliance with the Accounting Law. It also contains a chart of accounts numbered and classified in accordance with their disclosure in the Balance Sheet and Income Statement.
Not-for-profit
Other (please describe) Banks, Other Financial Institutions, Insurance Companies			The new accounting law on accounting and financial statements foreseen to enter in force on January 2006, requires application of IFRSs in full for certain types of the entities � such as second tier banks, insurance and reinsurance entities, listed entities, foreign entities operating in Albania, where their parent company is a listed entity in the origin country, some other significant entities in the country, etc.
Other (please describe)

29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			There is a statutory requirement for all listed companies and private companies in the legal form of joint-stock company. There is also a statutory requirement for the entities in the legal form of limited liability company that meets two out of three following criteria�s: Total of assets 6,000,000 lek., Total of annual turnover 12,000,000 lek., or Annual Average Employees number 10. Auditing standards are ISAs as adopted by IEKA.
Private companies			As above
Governmental			As above
Not-for-profit
Other (please describe) Banks, Other Financial Institutions, Insurance Companies
Other (please describe) Banks, Other Financial Institutions, Insurance Companies

30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?

Yes

If YES, please indicate the term of appointment:

1 Year(s)

31. Who appoints the statutory auditors?

Please check all that apply.

	Shareholders					Management
	Board of directors					Other (please specify):
	Audit committee					Other (please specify):
	Government agency					Other (please specify):

32. Does the Act or Code require joint auditors for the statutory audit?

Yes

If yes, please describe the requirement:
The Act requires at least two joint auditors for the statutory audit of joint-stock companies with the capital that exceeds 20 million lek.

33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?

Yes

If yes, please describe the requirement:
Note: The new proposed draft law on auditing developed in line with 8th modernized EU directive, requires rotation of principal auditors for every 5 years.

Section 4B -- Securities Market Regulations

Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:

the major items of Legal authority for such requirements

Law Nr. 8080 Date 01. 03. 1996 �On Securities� Modified by the Law No. 8168 DT 05.12.1996 and the Law No. 8745 DT 22.02.2001
the Enacting body(ies)

The Parliament of the Republic of Albania

Securities and Exchange Commission (Implementing regulations)

The Council of Ministers
the latest amendment date?

02/2001

35. How can IFAC obtain a copy of the Legal authority?

Either through the request to IEKA or through a direct request to Albanian Securities Commission. Also you may visit ASC Website: www.asc.gov.al

36. Is the Legal authority available in English?

Yes

37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?

Yes

If YES, please describe the requirement:

38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?

Yes

If YES, please describe the requirement:

39. Who appoints the statutory auditors of listed entities?

Please check all that apply.

	Shareholders			Management
	Board of directors			Other (please specify):
	Audit committee			Other (please specify):
	Government agency			Other (please specify):

40. Are auditors who perform audits of listed entities appointed for a specified period?

Yes

If YES, please indicate the term of appointment:

1 Year(s)

41. Are joint auditors required for audits of listed entities?

Yes

If YES, please describe the requirement:

The Act requires at least two joint auditors for the statutory audit of joint-stock companies with the capital that exceeds 20 million lek.

42. Is rotation of the auditor or audit firm for audits of listed entities required?

Yes

If YES, please describe the requirement:

Section 5 -- Auditing Standards

Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 5A -- Statutory Framework

43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:

Type of entity	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting audit and other assurance standards
Listed entity	Government decree	02/2004	IEKA
Other (please describe)	Government decree	02/2004	IEKA
Other (please describe)
Other (please describe)

By contacting IEKA

Yes

Section 5B -- Standard-Setting (IEKA)

44. For IEKA, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Elected body of a private organization established by the profession

Endorse the �International Standards on Auditing� issued by IFAC

45. How many voting members does the standard-setting body have?

7 (seven)

46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

The members of the Council of Albanian Institute of Chartered Auditors are elected among the members of the institute for three years term with the right to be reelected once more.

48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

General Assembly of the Institute of Chartered Auditors.

49. What is the term of appointment for members?

3 Year(s)

50. For how many years has the standard-setting body been in existence?

8 Year(s)

51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

$13,300

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

$1 = 106.58 lek

52. To what entity is the standard-setting body accountable?

The standard-setting body is accountable to the General Assembly. It also provides
information to the Minister of Finance, who in accordance with legal provisions is the public supervisor on the activities of the Institute.

53. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

The Council appoints its members to be involved in the direct translation of the standards from English language to Albanian language. The translated text of standards are revised and edited by a team of members of the Council under the guidance of the Chairman and the Deputy Chair. The International Standards on Auditing are published in a respective book, copies of which are sent to IFAC. The book is distributed to all members and is available in public libraries.
accessibility of meetings (i.e., public or private)

The meetings for discussions on the standards and other professional materials are public.
approval process for final standards (i.e., majority required to approve final standards)

The Council have approved the application of ISA and their endorsement with unanimity.
other relevant due process activities

The Council had planned and is working to update the translation of amended ISAs as they are published by IFAC. After the translation and review they are published in the professional magazine on accountancy, a publication issued by Albanian Institute of Chartered Auditors. By the end of the year 2004, all translated amendments will be published in a revised edition of the text-book on ISA.The translation process for the 2005 Edition of ISAs including Code of Ethics (June 2005 version) will be finalized by 31.12.2006

54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

10 Day(s)

Section 6 -- Ethics

Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 6A -- Statutory Framework

55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.

Type of professional covered	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting ethics standards
Professional Accountants in Public Practice	Government decree	02/2004	IEKA
Professional Accountants in Business	N/A	N/A
Professional Accountants in the Public Sector	N/A	N/A
Other (please describe)

By contacting IEKA

Yes

Section 6B -- Standard-Setting (IEKA)

56. For IEKA, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Elected body by the General Assembly of the Institute

Code of Ethics issued by IFAC and endorsed by the Council.

57. How many voting members does the standard-setting body have?

7 (seven)

58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Among the members of the Institute as in Q47.

60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Members are elected by the General Assembly.

61. What is the term of appointment for members?

3 Year(s)

62. For how many years has the standard-setting body been in existence?

5 Year(s)

63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

13,300

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

$1 = 2106.58 lek

64. To what entity is the standard-setting body accountable?

To the General Assembly of the Institute.

65. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

The standards are translated from English language and published in the Magazine issued by the Institute.
accessibility of meetings (i.e., public or private)

The standards are translated from English language and published in the Magazine issued by the Institute.
approval process for final standards (i.e., majority required to approve final standards)

After the publication of amendments by IFAC they are translated, reviewed and edited and endorsed by the Council of the Institute.
other relevant due process activities

Member training.
The translation process for the 2005 Edition of ISAs including Code of Ethics (June 2005 version) will be finalized by 31.12.2006

66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

10 Day(s)

Section 7 -- Education

Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

Section 7A -- Education Requirements

67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:

First Stage: Early Childhood School - four years, starting at the age of 7 years old.
Second Stage: Tertiary School � four years after the first stage. First and Second stage are compulsory.
Third Stage: Middle School � four years.
Fourth Stage: University � four to five years.

68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?

Yes

The specific requirements to operate as auditor are:
Under the Council of Ministers Degree No. 150/2000:
1. The individual holds a University Degree in Finance or similar Degrees.
2. The individual have at least three years of practical experience in auditing in an audit firm.
3. The individual have passed successfully the qualification examinations in respective area.
4. The individual is at least 25 years old.
5. The individual has not been charged with any criminal or penal act and enjoys the civil rights.
6. The individual is Albanian citizen for at least five years.

69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.

	Academic requirements Have been provided with diploma in one of the economic degrees or other similar university diploma.
	Professional examinations Prior to certification the candidate has to pass successfully 5 tests on the following disciplines: 1. Accounting, Analysis of annual accounts and accounting reviews 2. Civil law, commercial law, penal and labor law to the extent they are related with the audit profession 3. Accounting and auditing standards and their legislation 4. Managements, Internal control organization, including IT systems 5.Taxation issues
	Practical experience Three years time practical experience at an authorized auditor or at an audit firm is required
	Final qualifying examination Description on this issue is the same as for professional examinations
	Other (please describe)

70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.

	A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
	A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
	Member body(ies) establishes the education requirements for the accounting profession.
	Other (please describe)

71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.

A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.
The Commission of Professional Qualification Examinations is a public body constituted by five members appointed by the Minister of Education (the Chairman), the Minister of Finance, the Chairman of National Accounting Council, the Albanian Institute of Chartered Auditors, an academic from the professors of civil or penal law. The Commission approves the education programs for each subject and organizes and supervises the examination process.
How many voting members does the relevant body(ies) have
5 (five)
Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?

Voluntary

Employed

Both - Please describe:
For how many years has the body been in existence?

6 Year(s)

72. How would you describe the authority that the education requirements have?

	Requirements are legally-based
	Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
	Requirements are set in member body(ies) policy document(s).
	Other (please describe)

72 a. How can IFAC obtain copies of these documents?

72 b. Are these documents available in English?

Yes

73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?

Same

Different

If different, please briefly describe the main differences:

If different, please briefly describe the main differences.

74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.

	The education program and final examination are delivered by the member body.
	The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
	The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
	Other (please explain)

75. Once qualified as a member of your professional body, can members offer their services directly to the public?

Yes

Section 7B -- Licensing

76. Are there licensing requirements for auditors in your country?

Yes (continue with Question 77)

No (proceed to Section 8)

77. Who sets the requirements to obtain a license?

The Council of Ministers Degree and the By-Laws of the Institute.

78. What are the requirements to obtain a license (please select all relevant requirements.)?

	Academic study specific for obtaining a license
	Practical experience
	Licensing examination
	Final qualifying examination
	Other (please describe)

79. Are there ongoing requirements to retain a license?

Yes

	Continuing professional development
	Re-examination
	Other (please specify): In order to exercise the profession, the auditor shall not be disciplinary penalized

80. What entity grants the license?

The Albanian Institute of Chartered Auditors.

81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).

None.

Section 8 -- Public Sector Accounting Standards

Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

Section 8A -- Statutory Framework

82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.

Type of entity	Name of legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting public sector accounting standards
Whole of government	Law on Accounting, Government decree � on chart of accounts for central and local government and relevant instructions	1/1993, 12/2003	Ministry of Finance
Ministry/department	As above	As above
Statutory authority/agency	As above	As above
Profit entity owned by government	Law on Accounting and company law	1/1993, 11/1992
State governments	Law on Accounting, Government decree � on chart of accounts for central and local government and relevant instructions	1/1993, 12/2003
Local governments	As above	As above
Other (please describe)
Other (please describe)

You may request direct to the Ministry of Finance (Department of accounting) or through visiting web site:www.minfin.gov.al

Yes

Section 8B -- Standard-Setting (Ministry of Finance)

83. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Part of Ministry of Finance

Accrual basis modified
(treasury structures � apply cash basis)

84. How many voting members does the standard-setting body have?

N/A

85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Law on Civil servants is applicable in selecting the above employees.

87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Government (department of Public Administration)

88. What is the term of appointment for members?

Year(s)

89. For how many years has the standard-setting body been in existence?

7 Year(s)

90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

N/A

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

N/A

91. To what entity is the standard-setting body accountable?

To the minister of Finance.

92. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

N/A
accessibility of meetings (i.e., public or private)

N/A
approval process for final standards (i.e., majority required to approve final standards)

N/A
other relevant due process activities

Usually draft standards are produced based on the work organized in teams, etc.

93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 9 -- Private Sector Accounting Standards

Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

Section 9A -- Statutory Framework

94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.

Type of entity	Name of legal authority or applicable rules	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting private sector accounting standards
Listed entity	Law on Accounting, Law on Commercial Companies	2005	National Accounting Council
Other (please describe)	Law on Accounting, Law on Commercial Companies	2005	National Accounting Council
Other (please describe)
Other (please describe)
Other (please describe)

Through direct request to the National Accounting Council at the Albanian Ministry of Finance

Yes

Section 9B -- Standard-Setting (National Accounting Council)

95. For National Accounting Council, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Advisory to the Government of Albania on accounting issues
IEKA is represented on the Council

The following documents serve as National Accounting Standards
(General Accounting system � General Chart of Accounts and related instructions and guidelines)

96. How many voting members does the standard-setting body have?

9 (nine)

97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Members of National Accounting Council have to possess academic titles, i.e. Dr. Prof, etc., they must have experience in the field of accounting, good reputation, to represent professional accounting organizations and other business entities.

99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

- Minister of Finance of Albania

100. What is the term of appointment for members?

4 Year(s)

101. For how many years has the standard-setting body been in existence?

10 Year(s)

102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

21,600

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

$1=106.58 lek

103. To what entity is the standard-setting body accountable?

To the Minister of Finance

104. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

Yes
accessibility of meetings (i.e., public or private)

Yes
approval process for final standards (i.e., majority required to approve final standards)

Yes
other relevant due process activities

105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

24 Day(s)

Section 10 -- Monitoring (Quality Assurance) and Enforcement

Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

Section 10A -- Securities Market Regulatory Authority

106. Name the authority that regulates the securities market:

Albanian Securities Commission (ASEC)

107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:

There is no specific requirement for monitoring and enforcing compliance with accounting, reporting or auditing requirements
Applicable law for securities market is Law Nr.8080 01.03.1996 modified by laws Nr. 8168 dt.05.12.96 and 8745 dt.22.02.01
Legal authority with regarding to the accounting, reporting or auditing requirements is law on accounting and law on commercial companies mentioned earlier in this questionnaire

108. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

No application is accepted to obtain the license as trader or dealer in the stock exchange if the B/sheet and other financial statements are not audited
accounting and auditing standard-setting

No specific regulation
review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

Before listing entities shall submit to ASEC their prospectus

Section 10B -- Stock Exchange

109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:

Profit	Not for profit	Stock Exchange
		Tirana Stock Exchange

Section 10B -- Stock Exchange
Tirana Stock Exchange Details

110. For Tirana Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

NONE
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
How enforcement actions are administered.

Section 10C -- Regulatory Oversight of the Accounting Profession

111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?

Yes

If NO, proceed to the next section.

If YES, please describe :

What are the name and duties of the oversight body?

The Minister of Finance exercises the role of public oversight body.
The number of members on the oversight body

The Minister of Finance appoints an �Oversight Representative� and two other persons as �Complimentary Representatives� along side the work of The Council of the Institute of Chartered Auditors�
Its powers

To protect the interests of the Government and third parties that has relations with the members of the Institute;
- To assist the Institute Council meetings and those of other bodies within the Institute;
- Obtains all the information prior of respective events and documents;
- To appeal against the decisions of the Institute and its bodies;
- To conduct all necessary controls on the Institute activities.
- Provides prior approval on all Institute decisions except for professional standards and Institute budget.
How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

The Oversight Representative approves all the reports presented by the Quality Control
Committee and the conclusions on all auditors and audit firms inspected during the year and if it is the case on all disciplinary penalties.
The sanctions the oversight body may impose in the event of non-compliance

Observation;
- Admonition;
- Observation on the Chart;
- Temporary suspension of the license;
- Definite suspension from the Chart and the exercise of the profession.
How the oversight body is accountable to any public institution or body

The Minister of Finance is accountable to the Prime Minister and the Council of Minister and to the Law.

Section 10D -- Banks Regulatory Authority

112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:

Bank of Albania

113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:

Second tier banks are required to maintain their accounts and prepare and present their financial statements in conformity with national accounting standards, as well as in conformity with international accounting standards, taking into the consideration all bank regulations especially on creating sufficient reserve funds. Bank of Albania as supervisory body has issued regulations both for accounting and auditing procedures to be followed by second-tier banks.

114. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

Bank of Albania as regulatory Authority has no specific role on regulating the audit profession. Bank of Albania issues regulations about the procedures for selection of the auditors
accounting and auditing standard-setting

As a regulatory authority, Bank of Albania determines the detailed format of financial reporting and the audit reporting requirements that serves to the supervisory purposes
review of financial statements prepared by listed entities

N/A
enforcement of accounting, reporting and auditing requirements

Bank of Albania establish by regulation is the authority that provides special requirements in addition to the scope of the audit work to be performed by the auditor and for the reporting format.

Section 10E -- Non-Banking Financial Institutions Regulatory Authority

115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.

Bank of Albania

116. What is the source of Legal authority of the regulatory authority(ies)?

Law Nr. 8269 date 23.12. 1997 �On bank of Albania�, Law Nr. 8365 date 02.07.1998 �On Banks in the Republic of Albania"

117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:

regulation of the audit profession

No specific regulation
accounting and auditing standard-setting

Law on Accounting is applicable.
review of financial statements prepared by listed entities

Yes, BoA review the financial statements prepared by second tier banks.
enforcement of accounting, reporting and auditing requirements

Detailed reporting for oversight purposes.

Section 10F -- Insurance Companies Regulatory Authority

118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.

Albanian Insurance Oversight Commission

119. What is the source of Legal authority of the regulatory authority(ies)?

Law Nr. 8081 date 07.03.1996 �O Insurance and reinsurance operations� with later changes modified by law Nr.8458 date 11.2.1999 and law Nr. 8606 dt. 27.04.2000

120. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

No specific regulation.
accounting and auditing standard-setting

Insurance and reinsurance companies have to follow the requirements described in the Law Nr. 7661 �On Accounting�. For supervisory purposes they have to prepare detailed financial reporting. Minister of finance determines the formatted report requirements
review of financial statements prepared by listed listed entities

Yes, Albanian Insurance Oversight Commission reviews the financial statements prepared by insurance companies.
enforcement of accounting, reporting and auditing requirements

For supervisory purposes they have to prepare detailed financial reporting. Minister of finance determines the formatted report requirements

Section 10G -- Other Regulatory Authority

121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.

N/A

122. What is the source of Legal authority of each regulatory authority?

N/A

123. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

N/A
accounting and auditing standard-setting

N/A
review of financial statements prepared by listed listed entities

N/A
enforcement of accounting, reporting and auditing requirements

N/A

Section 10H -- Quality Assurance

124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?

Yes

If NO, proceed to next Section.

If YES, briefly describe the monitoring and enforcement mechanism.

The Quality Control Committee of the Albanian Institute of Chartered Auditors organizes a program of quality assurance review to monitor the compliance with auditing requirements.

125. Under what authority does the organization conduct the program of quality assurance review?

Under the authority of the Institute By-Laws and internal regulation and manual on quality control.

126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?

A team of selected members of the Institute trained to conduct quality controls to their colleagues.

Section 10 I -- Investigation and Discipline

127. Is there a process for investigating and disciplining the accounting profession in your country?

Yes

If NO, proceed to the Certification of Chief Executive

128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?

	Government or other agencies are solely responsible for this function.
	Government or other agencies have this responsibility, but the member body or bodies participate in the process.
	Government formally delegates this function to the member body or bodies, to exercise on its behalf.
	Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
	Other (please explain)

129. Please indicate the name of the body or bodies responsible for investigation and discipline.

The Discipline Commission at the Institute of Chartered Auditors

Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

130. How many voting members does the body have?

5 (five)

131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

They are appointed as public representatives of the Government Agencies by respective Ministers. One member of the Commission is a Chartered Auditor nominated by the Council of the Institute.

133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Respective Ministers and one member by the Council

134. What is the term of appointment for members?

3 Year(s)

135. For how many years has the body been in existence?

5 Year(s)

136. Please indicate the budget in US$ of the body for the last fiscal year.

Note: Please enter a whole number using commas (e.g., 4,000,000)

1,500

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

$1 = 106.58 lek (specify currency)

137. To what entity is the body accountable?

To the respective Government agencies which they represent.

138. Approximately how many days per year does the body meet in full session (including teleconferences)?

20 Day(s)

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