Albanian Institute of Certified Accountants
Associate | Established: 2000 | Associate since 2012
The Albanian Institute of Certified Accountants (IKM) was originally established as the Liaison of Certified Accounting Professionals (LPKM) by the Decision of the First Instance Court of Tirana No. 1590 dated 18/05/2000. During its 2006 organizational reforms, LPKM re-established itself as IKM, a non-governmental, non-profit, non-religious, and non-political organization. It is officially recognized by Legal Decree No. 8788 dated 07/11/2000 on Non for Profit Organizations, and operates in accordance with Law No. 10091. IKM’s membership is comprised solely of Certified Accountants; membership in IKM is voluntary. Members of IKM provide a variety of services including bookkeeping; compilation of financial statements; preparation of prospective financial statements; tax consulting; financial management consulting; internal control systems design and internal audit services; non-statutory auditing, and other services. A substantial percentage of IKM’s membership are accountants in business. Members of IKM do not provide statutory audit services.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
Although not required by law, in September 2010 IKM established a quality assurance (QA) review system for its members, which are mostly accountants. It set up the Quality Control Committee as an independent body in the...
Although not required by law, in September 2010 IKM established a quality assurance (QA) review system for its members, which are mostly accountants. It set up the Quality Control Committee as an independent body in the General Assembly and adopted quality control regulations that are partially in-line with ISQC 1. It also conducts different online activities to support its members with the implementation of quality control standards, especially as they relate to the provision of accounting services. Although the system overall is not fully aligned with SMO 1, IKM reports that it plans to achieve compliance.
Since 2014, IKM has reported that it participates in the discussions of the proposed amendments to the law to include a requirement for a mandatory QA system for accountants, in addition to the one for auditors. However, this provision has not been included in the final law passed in April 2016, the revisions of which, according to IKM, mainly related to the role, functions, and the organization of the Public Oversight Board.
IKM reports that it monitors national and international developments and standard-setting activities in the area and is developing a system for communicating new developments and changes in national and international guidance related to QA reviews to IKM membership and general public through publications, emails, or internet website.
IKM is encouraged to conduct a comparison of its QA system against the requirements of SMO 1, consider areas of less than full compliance, and develop action steps to eliminate gaps. During the next round of updates, IKM is encouraged to share information on the progress made, if any, in promoting to regulators the need to establish a mandatory system of QA reviews for all accountancy professionals.
Initial professional development (IPD) and continuous professional development (CPD) requirements for attaining qualification of a Certified Accountant, who are members of IKM, are set in law and appear to be mostly in...
Initial professional development (IPD) and continuous professional development (CPD) requirements for attaining qualification of a Certified Accountant, who are members of IKM, are set in law and appear to be mostly in line with IES: candidates are required to obtain a University Diploma; have three (3) years of related practical experience (accounting/finance); have attended the qualification training classes for IAS/IFRS and National Accounting Standards; and successfully passed the professional skills exams set by the Examination Commissions under the Public Oversight Board. In addition, IKM members are subject to CPD requirements. Since becoming and IFAC Associate, IKM worked to bring its CPD requirements in line with IES. As of 2016, IKM members are subject to 40 hours of CPD (30 previously), and this requirement is monitored (no monitoring previously) as well as the practical experience requirement, a recommendation made by the Q&M staff during IKM’s IFAC admission process in 2012.
IKM reports that it has in place an ongoing process of reviewing its education program requirements to ensure that they comply with IES, the Audit and Accounting Laws, and of improving the delivery of accountancy education and CPD training. As part of the World Bank Corporate Financial Reporting Enhancement Project (CFREP), IKM has been working with the WB consultant for improving the University curricula and professional training program. Between 2014–2016, IKM assisted the WB consultants in determining the key issues to be covered by the new phase of the project, CFREP 2, which is scheduled to commence in September 2016. The program is focused on bringing the IPD requirements in line with the relevant IES and the IKM reports it plans to assist the WB consultants with its implementation.
IKM was also actively involved in the review of the Law on Statutory Auditing and Organization of the Accounting Profession and plans to prepare by September 2016 the new regulations on professional training of candidates during the initial training programs and on the CPD programs to improve relevant practical training procedures and assessment in accordance with IES.
IKM is encouraged to review the existing requirements for accountants in Albania against the revised IES once the indicated projects have been finalized and to report to the IFAC Q&M staff on the extent compliance of national requirements with those of the revised IES. In addition, going forward, if deemed relevant and practical, IKM is encouraged to consider participating in the international standard setting process by responding to Exposure Drafts issued by the IAESB and participating in other public consultations.
IKM reports that being a professional association of accountants, it does not have statutory auditors as its membership and is not therefore actively involved in this area. IKM has considered the need to be involved in...
IKM reports that being a professional association of accountants, it does not have statutory auditors as its membership and is not therefore actively involved in this area. IKM has considered the need to be involved in the auditing standard-setting and implementation of the standards and reported that it in general supports Albanian Institute of Authorized Chartered Auditors in the process of an on-going adoption of ISA and participates in national roundtables on the financial reporting framework. One of the recent activities reported are participation in a round table on proposed amendments to the Law No. 10091 which focused on the regulation of auditors and in a virtual training organized by the World Bank for the Audit Train the Trainers in September 2016.
IKM has established process to ensure timely adoption of the IESBA Code of Ethics once they have been translated by the Albanian Institute of Authorized Chartered Auditors (IEKA), which took the leadership role in the...
IKM has established process to ensure timely adoption of the IESBA Code of Ethics once they have been translated by the Albanian Institute of Authorized Chartered Auditors (IEKA), which took the leadership role in the translation of the Code for application in Albania. As of 2016, the 2011 version of the Code has been adopted for the application by the IKM members. Once IEKA has completed the translation of the 2015 version of the IESBA Code, IKM will adopt it for its members.
To support implementation of the IESBA Code of Ethics, IKM incorporated the requirements of the Code into its continuing professional development program.
IKM reports that it monitors the activities of the IESBA and provides comments to the IESBA Exposure Drafts and other public consultations. IKM is also developing a system for communicating new developments and changes in national and international standards and other guidance to IKM membership and general public through magazine, emails, or internet website.
IKM is encouraged to consider enhancing its activities to support its members with the implementation of the Code and raise their awareness about its requirements. Such activities may include holding seminars and focused training on the subject, establishing hotlines, and disseminating information on the developments in the area through different communications means, among other activities. If deemed practical and needed, IKM could also consider assisting IEKA in the translation process to reduce the time lag between the issuance of new IESBA pronouncements and their application in Albania.
IKM maintains a role in supporting the development of public sector accounting standards through its seat on the National Accounting Council which advises the Ministry of Finance (MoF), the standard-setter, on public...
IKM maintains a role in supporting the development of public sector accounting standards through its seat on the National Accounting Council which advises the Ministry of Finance (MoF), the standard-setter, on public sector accounting standards. The president of IKM is a member of a steering committee set to coordinate the implementation of full IPSAS in the public sector of budget institutions. IKM has been invited as an expert to provide insight on this issue and has also supported the possible adoption of IPSAS through authoring articles on the subject of IPSAS and accrual accounting in the IKM magazine. IKM reports that it monitors international developments in the area and provides access to its membership to IPSAS and other related publications through its website, magazines, and publications. IKM reports that it has provided comments to the IPSASB Exposure Drafts since January 2011 and in 2010, IKM assisted the MoF in translating IPSAS.
There is no legal requirement to implement a system of investigation and discipline (I&D) of accountants in the jurisdiction. Nevertheless, the IKM introduced an I&D process which was administered by the Managing...
There is no legal requirement to implement a system of investigation and discipline (I&D) of accountants in the jurisdiction. Nevertheless, the IKM introduced an I&D process which was administered by the Managing Council. In January 2015, IKM established a separate I&D Committee within its Managing Council, which is directly responsible for investigating and analyzing complaints related to discipline of members for any breach of the code of ethics and professional conduct.
In 2014, IKM reported that it had reviewed the requirements of SMO 6 (revised 2012) and developed an action plan to address the shortcomings in the existing I&D system. In addition, the institute was in the process of drafting regulation on investigation and discipline for accountants based on the prevailing law and the requirements of SMO 6 as part of the revision of the Law on Statutory Auditing and Organization of the Accounting Profession. However, the final Law does not seem to contain provisions on the regulation of accountants, including establishment of an investigative and disciplinary system.
IKM is encouraged to review the requirements of SMO 6, identify areas of less than full compliance, and develop concrete and measurable actions in its SMO Action Plan to address the shortcomings. SMO 6 section of the Plan needs to be updated to reflect the recent and planned activities as well as the main features of the existing system and number of cases heard.
Although IKM does not set accounting standards, it is represented on the National Accounting Council (NAC) which is responsible for drafting national standards and providing a recommendation for adoption to the Ministry...
Although IKM does not set accounting standards, it is represented on the National Accounting Council (NAC) which is responsible for drafting national standards and providing a recommendation for adoption to the Ministry of Finance. IKM is involved in the process of translation of IFRS and IFRS for SMEs through active participation in the IFRS translation review committee. IKM also promotes the adoption of IFRS for SMEs through its representation on the NAC. In 2016, the institute conducted trainings on the new National Accounting Standards following their revision.
To support its membership with the implementation of the accounting standards, IKM provides training programs, initiates public forums, delivers education materials to its members, and disseminates information on the international developments. IKM reports that it participates both in national and international standard-setting process through provision comments on the exposure drafts of both national and international pronouncements. Overall, IKM has processes in place to address the SMO 7 requirements on an ongoing basis. These processes are designed to maintain the SMO fulfilment level and address new developments as appropriate.
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