Institute of Authorized Chartered Auditors of Albania

The Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, establishes a mandatory quality assurance (QA) review system under the oversight of the Public Oversight Board (POB), with authority to delegate reviews of non-public interest entities to the Albanian Institute of Authorized Chartered Auditors (IEKA). In 2025, the POB delegated responsibility to IEKA to conduct QA reviews of non-public interest entity audits.

Prior to the transfer of oversight responsibilities following the 2016 legislative amendments, IEKA operated the jurisdiction’s QA review system for all statutory audits and had established procedures aligned with the requirements of Statement of Membership Obligation 1. IEKA continues to support implementation of the QA framework through its operational role in reviews of non-public interest entities and through cooperation with the POB.

IEKA reports that it has translated and supported implementation of the International Standards on Quality Management (ISQM) 1 and 2 and ISA 220 (Revised). The institute has also developed implementation tools, organized training activities, and provided technical support to members and reviewers to strengthen understanding of quality management requirements and QA review procedures. In addition, IEKA-appointed inspectors have participated in regional and World Bank-supported capacity-building activities together with POB inspectors.

IEKA continues to support high-quality audit practices through ongoing professional development activities, implementation support, and cooperation with the POB on matters related to audit quality and inspection outcomes. Based on the operational QA framework, IEKA’s continued involvement in implementation and oversight activities, and its sustained support for members, the SMO 1 fulfillment is assessed as Sustain.

Current Status: Sustain

Under the oversight of the Public Oversight Board (POB), the Albanian Institute of Authorized Chartered Auditors (IEKA) is responsible for supporting initial professional development and enforcing continuing professional development requirements for statutory auditors in Albania. IEKA develops professional education programming, verifies practical experience, and monitors compliance with continuing professional development requirements established under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended. The POB continues to oversee the professional competence examination process for statutory auditors and certified accountants through the Professional Skills Examination Commission.

IEKA’s professional education model integrates university education, professional training delivered by IEKA, practical experience, and final professional examinations. IEKA’s education and continuing professional development regulations refer to the requirements arising from its International Federation of Accountants membership obligations, and IEKA activity reports indicate that the institute continues to provide professional training for statutory auditor candidates and members.

Candidates for statutory auditor status are required to complete practical experience under a recognized statutory auditor or audit firm, and IEKA monitors this through periodic employer reporting. IEKA members are required to complete at least 120 hours of continuing professional development over a three-year period, and compliance is subject to monitoring. The POB also reviews fulfillment of continuing professional development requirements and may take measures in cases of non-compliance.

IEKA has made significant progress in aligning its education and continuing professional development framework with the International Education Standards and continues to work with the POB and higher education institutions to strengthen professional education and assessment arrangements.

IEKA is encouraged to continue working with the POB and higher education institutions to complete the transition to the integrated education model and update local education, assessment, and continuing professional development requirements for the revised International Education Standards effective July 1, 2026.

Current Status: Review & Improve

International Standards on Auditing (ISA) are adopted by law in Albania, and the Albanian Institute of Authorized Chartered Auditors (IEKA) is responsible for translating the standards into Albanian. IEKA and the Society of Certified Accountants and Auditors of Kosovo (SCAAK) have established a joint translation arrangement to support translation of new and revised ISA as they become available.

According to the IFAC Translations Database, the completed Albanian translation currently available is the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities is listed as in progress in Albanian. The Public Oversight Board (POB) also identifies the professional standards applicable to statutory auditors and audit firms as mandatory for implementation through the Official Gazette.

IEKA continues to support implementation of IAASB pronouncements through professional education, continuing professional development, guidance, and dissemination of information on international standard-setting developments. IEKA’s website identifies standards, member training, quality assurance, and candidate education as core areas of activity.

IEKA’s sustained translation and implementation support activities demonstrate continued commitment to the requirements of SMO 3. However, as the latest IAASB Handbook is not yet adopted for application in Albania, the SMO 3 fulfillment assessment remains Review & Improve.

IEKA is encouraged to continue working with SCAAK and the POB to strengthen the timeliness of translation, approval, and implementation of new and revised IAASB pronouncements.

Current Status: Review & Improve

The International Code of Ethics for Professional Accountants (including International Independence Standards) is adopted by law in Albania for statutory auditors and certified accountants. The Albanian Institute of Authorized Chartered Auditors (IEKA), under the oversight of the Public Oversight Board (POB), is responsible for translating the Code for application in Albania. The POB approves the Code applicable to statutory auditors and audit firms and supervises its implementation.

IEKA and the Society of Certified Accountants and Auditors of Kosovo (SCAAK) have established a joint translation arrangement to support translation of the Code and other international standards. The 2023 International Code of Ethics for Professional Accountants has been translated for POB approval. IEKA also makes the 2018 Albanian translation of the Code publicly available on its website.

IEKA incorporates ethics into its initial and continuing professional development programs, including a dedicated professional and business ethics module covering the fundamental concepts and requirements of the Code. IEKA also maintains a Professional Standards and Ethics Committee to address implementation questions and requests for interpretation and continues to cooperate with the POB and the Financial Intelligence Unit of Albania on anti-money laundering and counter-terrorist financing matters.

IEKA’s translation, education, and implementation support activities demonstrate continued commitment to SMO 4. However, as the latest Code in effect at the time of assessment has not yet been formally approved for application in Albania, the SMO 4 fulfillment assessment remains Review & Improve.

IEKA is encouraged to continue working with SCAAK and the POB to support timely approval and implementation of new and revised International Ethics Standards Board for Accountants pronouncements.

Current Status: Review & Improve

The Albanian Institute of Authorized Chartered Auditors (IEKA) has no direct responsibility for the adoption of public sector accounting standards in Albania, which falls under the remit of the Ministry of Finance. Public financial management reforms are underway to develop public sector accounting and financial reporting in compliance with International Public Sector Accounting Standards (IPSAS), with support from the World Bank and development partners.

Within the scope of its authority, IEKA supports adoption and implementation efforts by disseminating information on IPSAS and public sector accounting developments to relevant stakeholders. IEKA also reports that it engages with the Ministry of Finance on training for public sector staff and is designing continuing professional development activities informed by public sector accounting training organized by the Chartered Institute of Public Finance and Accountancy.

IEKA has demonstrated sustained best-endeavors activity by monitoring developments, supporting awareness raising, and engaging with relevant authorities in an area where it does not have direct standard-setting responsibility. Accordingly, the SMO 5 fulfillment is assessed as Sustain.

Current Status: Sustain

The Public Oversight Board (POB) has legal authority for investigation and discipline of statutory auditors and audit firms in Albania. The POB approves regulations on investigation and disciplinary procedures, conducts additional investigations where necessary, and decides on disciplinary matters within its competence. The POB’s regulatory framework includes Regulation No. 4 of 2018 on investigation and procedures for the imposition of disciplinary measures.

The Albanian Institute of Authorized Chartered Auditors (IEKA) no longer has final enforcement authority for statutory auditors but continues to support the investigation and discipline system through its Investigation Committee. IEKA investigates matters involving its members, refers relevant cases to the POB for disciplinary action, and publishes information on complaint procedures and disciplinary outcomes through its website and member communications.

IEKA also cooperates with the POB and other relevant regulators to support effective enforcement and uses inspection and disciplinary developments to inform member education and professional guidance. These activities demonstrate that IEKA is using its best endeavors within the scope of its authority to support a jurisdiction-level investigation and discipline system aligned with SMO 6.

Based on IEKA’s continued investigation role, cooperation with the POB, publication of relevant information, and support for member awareness, the SMO 6 fulfillment assessment is Sustain.

Current Status: Sustain

The Albanian Institute of Authorized Chartered Auditors (IEKA) has no direct responsibility for the adoption of accounting standards in Albania. The National Accounting Council is responsible for drafting national accounting standards, while International Financial Reporting Standards (IFRS Accounting Standards) are required for public interest entities under the Law on Accounting and Financial Statements No. 25/2018. The IFRS Foundation jurisdiction profile indicates that Albania has adopted IFRS Accounting Standards and incorporates new and amended standards into law without modification.

Within the scope of its authority, IEKA supports implementation by promoting adoption of IFRS Accounting Standards without modification, assisting the National Accounting Council in standard-setting activities, contributing to the translation and implementation process where needed, and disseminating information on international standard-setting developments. IEKA also supports members through training, seminars, and technical articles on new and revised National Accounting Standards and differences between National Accounting Standards and IFRS Accounting Standards.

IEKA has demonstrated sustained best-endeavors activity by supporting implementation, member training, and engagement with the national standard-setting process in an area where it does not have direct adoption authority. Accordingly, the SMO 7 fulfillment is assessed as Sustain.

Current Status: Sustain