Institute of Certified Auditors of the Republic of North Macedonia

In accordance with the Audit Law and subject to the oversight of the Council for Advancement and Oversight of Audit (CAOA), the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM) is responsible for the establishment and operation of the quality assurance (QA) review system for all statutory audits. The CAOA, as the public oversight authority, may request specific QA reviews to be carried out by ICARNM and is represented on ICARNM’s Quality Control Committee.

ICARNM developed its QA system in 2009 with the support of the French professional accountancy organizations and the Road to Europe: Program of Accounting Reform and Institutional Strengthening (REPARIS), and has operated the system continuously since 2010. The QA review system covers all statutory audits and also extends to other assurance engagements. ICARNM reports that the system is aligned with the requirements of Statement of Membership Obligations 1 (SMO 1).

Since 2010, ICARNM has conducted QA reviews using a cyclical approach covering approximately 95 percent of audit engagements in the jurisdiction. The Institute prepares annual QA work programs and annual reports that summarize the results and findings of the reviews and identify areas for improvement for subsequent cycles. These documents are made publicly available on its website.

ICARNM maintains a QA Rulebook and reviews and updates it as necessary to reflect legislative developments, quality review findings, and international best practices. ICARNM has also indicated that it will update the Rulebook further following any final amendments to the Audit Law, including proposed changes relating to the division of responsibilities between CAOA and ICARNM for public interest entity and non-public interest entity reviews.

To support implementation, ICARNM maintains ongoing activities for members, including continuing professional development programs, seminars, and practical guidance on establishing and maintaining effective quality management systems. The Institute has organized multi-day technical seminars on the practical implementation of International Standards on Auditing (ISA), audit planning, risk assessment, and the transition to International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised).

ICARNM also provides targeted support for small- and medium-sized practices through tools and implementation guidance, including collaboration with the Profession Comptable Libérale Française on the “Audit Pack for SMEs” and dissemination of IFAC’s Guide to Quality Control for Small- and Medium-Sized Practices. Through these well-established and continuously improving processes, ICARNM maintains ongoing fulfillment of its SMO 1 obligations.

Current Status: Sustain

Initial professional development (IPD) and continuing professional development (CPD) requirements for certified auditors, which fall within the Institute of Certified Auditors of the Republic of North Macedonia’s (ICARNM) area of regulatory responsibility under the oversight of the Council for Advancement and Oversight of Audit (CAOA), are established in the Audit Law. Auditor candidates are required to hold a university degree in a relevant field, complete a professional education program, pass the professional examinations administered by ICARNM, complete three years of practical audit experience, including at least two years under the supervision of a practicing auditor, and maintain a clean professional record.

According to the World Bank’s 2017 Accountancy Education: Benchmarking Study, university master’s programs benchmarked well against the International Education Standards (IES) in effect at that time. At the same time, the study identified opportunities for further alignment in financial accounting and reporting, information technology learning outcomes, and public sector accounting coverage. In addition, practical experience under International Education Standard 5 (IES 5) remains primarily time-based rather than competency-based.

ICARNM has established an examination program and syllabus that is benchmarked against the Association of Chartered Certified Accountants (ACCA) education and training framework, originally developed under the Road to Europe: Program for Accounting Reform and Institutional Strengthening (REPARIS). ICARNM reports that its syllabus was further improved in 2022, with eight out of thirteen ACCA exemptions granted, indicating stronger alignment with international benchmarks. The Institute has also established an Examination Committee and a Rulebook governing examination procedures.

Certified auditors are subject to 120 hours of CPD over a three-year period. ICARNM’s Committee for Education, Training and Publications is responsible for issuing the annual CPD program. The World Bank benchmarking study notes that further work is needed to transition toward an output-based CPD framework aligned with International Education Standard 8 (IES 8). ICARNM reports that it is actively working to improve this aspect of its CPD framework.

ICARNM continues to support education and professional development through cooperation agreements with universities, professional organizations, and regional accountancy bodies, including partners in Bulgaria, Azerbaijan, and Kosovo, to strengthen academic cooperation and support IPD and CPD activities.

ICARNM should continue to strengthen alignment with the latest IES by focusing on competency-based practical experience requirements, output-based CPD in line with IES 8, and further collaboration with universities and other stakeholders to address the recommendations identified in the World Bank’s benchmarking study. A formal self-assessment against the latest IES and the development of a time-bound action plan to address any identified gaps would further support progress toward Sustain.

Current Status: Execute

Under the Audit Law, the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM) is responsible for the translation of international auditing pronouncements as well as monitoring their implementation and enforcement in the jurisdiction.

As of the date of this assessment, the standards in force correspond to the 2025 edition of the Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, including International Standard on Auditing (ISA) 600 (Revised) and the related quality management standards.

ICARNM maintains an ongoing process for regularly updating its educational and technical materials to reflect new and amended pronouncements issued by the International Auditing and Assurance Standards Board (IAASB). The Institute’s focus remains on supporting adoption and implementation within the jurisdiction through translation, dissemination, and technical guidance.

ICARNM provides regular training on the latest ISA through its continuing professional development (CPD) programming and technical seminars. In addition, the Institute actively participates in the World Bank Centre for Financial Reporting Reform’s Training of Trainers initiatives and other technical workshops organized under the Road to Europe: Program for Accounting Reform and Institutional Strengthening (REPARIS) and Strengthening Auditing and Reporting in the Countries of the Eastern Partnership (STAREP) programs.

Through these ongoing translation, implementation support, and professional development activities, ICARNM maintains well-established processes to fulfill its obligations under Statement of Membership Obligations 3 (SMO 3).

Current Status: Sustain

The Institute of Certified Auditors of the Republic of North Macedonia (ICARNM) is responsible for the translation of the International Code of Ethics for Professional Accountants (including International Independence Standards) as adopted under the Audit Law, as well as monitoring its implementation among auditors and supporting enforcement actions related to violations of the Code.

As of the date of this assessment, the ethical requirements in force correspond to the 2025 edition of the International Code of Ethics for Professional Accountants (including International Independence Standards) and are applicable to certified auditors in the jurisdiction.

ICARNM reports that its activities in this area are carried out through its Auditing Standards Committee and Disciplinary Committee and are focused on supporting members with the practical implementation of the Code. The Institute’s annual continuing professional development (CPD) program includes updates on amendments to the Code and training on its practical application, and members receive updates and materials from IFAC.

ICARNM also continues to prioritize the translation and dissemination of ethical standards and related guidance to members and relevant stakeholders. The Institute recognizes the ongoing importance of ethics education and training and continues to support awareness and implementation through its CPD programming and technical communications.

Through these well-established and continuously maintained processes, ICARNM sustains fulfillment of its obligations under Statement of Membership Obligations 4 (SMO 4).

Current Status: Sustain

According to the 2020 International Federation of Accountants and Chartered Institute of Public Finance and Accountancy Public Sector Financial Accountability Index, the World Bank Centre for Financial Reporting Reform’s 2020 Stocktaking of Public Sector Accounting and Reporting Environment in PULSAR Beneficiary Countries: North Macedonia, and the 2022 Book on Public Sector Accounting Reforms Implementation Status in PULSAR Countries, central government institutions in North Macedonia continue to apply national cash-basis accounting standards under the Law on Accountancy of the Budget and Budget Beneficiaries, while state-owned entities apply national standards based on International Financial Reporting Standards (IFRS). The World Bank’s 2022 reports note an ongoing transition toward modified accrual-basis standards, and the adoption of International Public Sector Accounting Standards (IPSAS) forms part of the Ministry of Finance’s Public Financial Management Reform Strategy for the period 2022–2025.

Public sector accounting standards are not within the direct regulatory remit of the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM). ICARNM reports that it has considered the requirements of Statement of Membership Obligations 5 (SMO 5) within the context of the jurisdiction’s regulatory and operating environment and recognizes that the Institute of Accountants and Certified Accountants (IACA) has a more direct role in supporting the promotion and implementation of accrual-basis IPSAS.

ICARNM indicates that it is cooperating with IACA on regulatory matters and remains prepared to support awareness-building and implementation efforts within the scope of its mandate, including through its continuing professional development programming and technical support to government stakeholders where appropriate.

To keep members informed of developments in public sector reporting, ICARNM regularly disseminates information on new, proposed, and revised IPSAS and other pronouncements issued by the International Public Sector Accounting Standards Board through electronic circulation of IFAC bulletins, newsletters, and technical updates. Given the nature of its mandate and the legal and regulatory environment, ICARNM maintains appropriate ongoing processes in relation to SMO 5 and the rating remains Sustain.

Current Status: Sustain

In accordance with the Audit Law, the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM), under the oversight of the Council for Advancement and Oversight of Audit (CAOA), is responsible for establishing and operating an investigative and disciplinary (I&D) mechanism for auditors.

ICARNM has established a Disciplinary Committee and a Management Board responsible for the implementation of its I&D procedures. The Disciplinary Committee conducts investigations and hearings and makes recommendations to the Management Board regarding the initiation of disciplinary procedures and proposed sanctions. The Management Board, in turn, imposes disciplinary measures based on the recommendations of the Disciplinary Committee. ICARNM reports that it has reviewed its I&D procedures and considers them aligned with the requirements of Statement of Membership Obligations 6 (SMO 6).

ICARNM maintains an I&D Rulebook, which was last updated in 2018 to reflect amendments to the Audit Law, new bylaws, and key SMO 6 components, including the independence of the Disciplinary Committee, defendants’ rights, and more precise sanctioning procedures.

Between 2018 and 2021, ICARNM reports that it conducted I&D procedures arising from quality assurance review findings, continuing professional development obligations, and membership fee compliance matters. Where disciplinary measures resulted in the revocation of membership or practicing licenses, the outcomes were reflected in the relevant public registers on its website.

ICARNM also includes information sessions on the I&D framework as part of its courses and member education activities to support awareness and understanding of professional obligations and enforcement procedures.

ICARNM should continue to review the implementation and effectiveness of its I&D procedures on a regular basis, including the operation of disciplinary processes in practice, to identify opportunities for improvement and ensure continued alignment with SMO 6 requirements and evolving legal and regulatory expectations.

Current Status: Review & Improve

The Institute of Certified Auditors of the Republic of North Macedonia (ICARNM) has no direct responsibility for the adoption of International Financial Reporting Standards (IFRS) and the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), which are adopted by the Ministry of Finance and published in the Official Gazette.

ICARNM contributed to the translation of the 2009 IFRS into Macedonian. Under the Law on Accounting Practice, responsibility for the translation of IFRS and IFRS for SMEs falls within the remit of the Institute of Accountants and Certified Accountants (IACA).

In April 2024, the Ministry of Finance published Official Gazette No. 75/2024 adopting the 2023 IFRS translated into Macedonian as the applicable accounting framework for large and medium-sized commercial entities, banks, insurance companies, pension funds, financial institutions, listed companies, other entities specified by law, and their subsidiaries where applicable. These requirements became effective as of January 1, 2025. The Gazette also reconfirmed the application of IFRS for SMEs for all other entities.

ICARNM supports implementation among its members through educational programs and continuing professional development (CPD) activities. The Institute reports that at least 15 hours of its annual CPD programming are dedicated to IFRS, IFRS for SMEs, and related updates.

In addition, ICARNM supports and participates in regional workshops and technical events related to financial reporting and IFRS implementation. Given the nature of its mandate and its well-established ongoing support activities, the rating remains Sustain.

Current Status: Sustain