Instituti i Kontabilistëve të Miratuar

Under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, responsibility for the statutory audit quality assurance (QA) review system rests with the Public Oversight Board and the Albanian Institute of Authorized Chartered Auditors for statutory auditors and audit firms. The Institute of Certified Accountants (IKM), as the professional organization for certified accountants, does not have responsibility for statutory audit QA reviews.

Although not required by law, IKM established a QA review system for its members that is focused on certified accountants and accounting firms. The system is administered through a Quality Control Committee and uses peer review, cycle-based, and risk-based approaches. IKM reports that, since the system became operational in 2018, it has completed four review cycles and reviewed more than 100 member firms. IKM shares information on the functioning of the system with the Public Oversight Board, which recognizes and oversees professional organizations for certified accountants.

IKM has conducted self-assessments of its QA review system against SMO 1 requirements and reports that its procedures are aligned with the benchmark. It has also reviewed its QA procedures and supporting manuals to address quality management standards and supports members through quality control checklists, updated guidance, workshops, and training for firms, practitioners, reviewers, and the Quality Control Committee. IKM also monitors national and international developments and communicates relevant updates to members through publications, emails, and its website.

IKM’s voluntary QA review system for accounting services, ongoing member support, coordination with the Public Oversight Board, and continued alignment of procedures with quality management developments demonstrate sustained activity within the scope of its authority.

Current Status: Sustain

Initial professional development and continuing professional development requirements for Certified Accountants are established under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, and related Public Oversight Board (POB) regulations. The Institute of Certified Accountants (IKM) supports implementation through its Education Committee, candidate training, continuing professional development programming, and coordination with the POB on examination and qualification requirements.

IKM has continued to strengthen its education framework through World Bank-supported reforms, including the Strengthening Quality of Auditing and Reporting Project. The project supports improvements to accountancy education, examination processes, examiner and moderator training, secure examination question banks, and e-examination arrangements. The World Bank’s June 2025 implementation report also notes support to IKM for development of a forensic accounting program and related training materials for members.

IKM requires members to complete 40 hours of continuing professional development annually, monitors compliance, and uses member feedback to develop its annual training calendar. IKM has also strengthened its approach to continuing professional development by incorporating assessment-based elements to evaluate learning outcomes and provides training on accounting standards, anti-money laundering, ethics, taxation, and other topics relevant to certified accountants.

IKM’s continued participation in education reforms, continuing professional development monitoring, and member training demonstrates progress toward alignment with the International Education Standards. However, implementation of strengthened practical experience monitoring, assessment arrangements, and related legislative or regulatory reforms remains ongoing. Accordingly, the SMO 2 fulfillment assessment is assessed as Review & Improve.

IKM is encouraged to continue working with the POB, Ministry of Finance, and World Bank to complete reforms to practical experience monitoring and examination quality control and to align its education framework with the revised International Education Standards effective July 1, 2026.

Current Status: Review & Improve

The Institute of Certified Accountants (IKM) does not have direct responsibility for the adoption or translation of International Standards on Auditing (ISA), and its membership does not include statutory auditors. ISA are required by law for statutory audits in Albania, and the Albanian Institute of Authorized Chartered Auditors is responsible for translation. The Albanian translation of the 2018 International Auditing and Assurance Standards Board Handbook is currently applied, while the 2021 Handbook has been translated by the Albanian Institute of Authorized Chartered Auditors and the Society of Certified Accountants and Auditors of Kosovo and is pending approval by the Public Oversight Board. International Standard on Quality Management 1, International Standard on Quality Management 2, and the International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities have been translated separately for distribution.

Within the scope of its authority, IKM supports implementation by participating in national discussions on the financial reporting framework, cooperating with the Albanian Institute of Authorized Chartered Auditors on matters affecting the profession, and including relevant ISA and related pronouncements in its continuing professional development plan. IKM has provided training on ISA 700–800 and International Standard on Related Services 4400 (Revised), which are relevant to the work of certified accountants, and reports that it works with higher education institutions to include ISA and related pronouncements in accountancy education.

IKM’s activities demonstrate sustained best-endeavors support for adoption and implementation of International Auditing and Assurance Standards Board pronouncements in an area where it has no direct adoption authority. Accordingly, the SMO 3 fulfillment is assessed as Sustain.

Current Status: Sustain

The Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, requires application of the International Code of Ethics for Professional Accountants (including International Independence Standards) for statutory auditors and certified accountants in Albania. Members of the Institute of Certified Accountants (IKM) are required under IKM’s Charter to apply the Code. The 2023 Code has been translated for approval by the Public Oversight Board (POB).

IKM adopts the Code as translated by the Albanian Institute of Authorized Chartered Auditors and updates its supplementary ethical requirements to align with relevant sections of the Code for certified accountants. IKM also monitors developments issued by the International Ethics Standards Board for Accountants and communicates updates to members through continuing professional development, publications, emails, and its website.

IKM supports implementation by incorporating the Code into its continuing professional development program, including mandatory annual ethics training, case studies, and coverage of recent revisions. IKM also cooperates with the Society of Certified Accountants and Auditors of Kosovo, including on matters related to timely translation of the Code.

IKM demonstrates ongoing implementation support and monitoring of ethics-related developments. However, as the latest Code has not yet been formally approved for application in Albania, the SMO 4 fulfillment assessment remains Review & Improve.

IKM is encouraged to continue supporting timely approval and implementation of the latest Code and to further strengthen practical implementation support for members, including opportunities for members to seek technical guidance on ethics-related matters.

Current Status: Review & Improve

The Institute of Certified Accountants (IKM) supports public sector accounting reform through its representation on the National Accounting Council, which advises the Ministry of Finance on public sector accounting standards. Albania continues to pursue public financial management reforms to support the implementation of public sector accounting requirements aligned with International Public Sector Accounting Standards (IPSAS), with support from the World Bank and development partners. The 2025–2027 Economic Reform Programme also refers to the Public Financial Management Reform Strategy 2023–2030 as part of the broader reform framework.

IKM participates in the reform process through its involvement in the steering committee for the World Bank-supported public sector accounting project. IKM members have served as trainers under capacity-building activities for public sector accountants, and IKM reports that it supports the translation process and future professionalization initiatives, including discussions on a Public Sector Accountant certification.

IKM has continued to advocate for the adoption and implementation of IPSAS by publishing articles, participating in national and international events, informing members of public sector accounting developments, and incorporating IPSAS-related content into continuing professional development and education activities. These activities demonstrate sustained best-endeavors support for adoption and implementation in an area where IKM has shared or indirect responsibility. Accordingly, the SMO 5 fulfillment assessment is assessed as Sustain.

Current Status: Sustain

There is a legal requirement for investigation and discipline of statutory auditors in Albania. For certified accountants, enforcement mechanisms are primarily established through recognized professional accountancy organizations. The Institute of Certified Accountants (IKM) established an investigation and discipline process for its members in 2015 and has since reviewed and strengthened its procedures against the requirements of SMO 6.

IKM reports that it has separated investigation and disciplinary functions, introduced participation of non-accountants in the process, established a link between quality assurance review findings and disciplinary procedures, and publishes sanctions and decisions on its website. IKM also includes training on the investigation and discipline system and the consequences of non-compliance in its continuing professional development program.

IKM cooperates with the Public Oversight Board and other national authorities, including tax, prosecution, and anti-money laundering authorities, on matters related to professional conduct, corruption, tax evasion, and money laundering. Public Oversight Board Regulation No. 9 of 2019 provides the framework for the regulation and supervision of certified accountants and their professional organizations, and SHKFSH was recognized as a second professional accountancy organization for accountants in 2024.

IKM has made significant progress in aligning its investigation and discipline procedures with SMO 6 and demonstrates ongoing cooperation with the Public Oversight Board and other authorities.

IKM is encouraged to continue reviewing the effectiveness of its procedures and to work with the Public Oversight Board and other recognized professional accountancy organizations to support consistent, high-quality investigation and discipline arrangements for all certified accountants in Albania.

Current Status: Review & Improve

The Institute of Certified Accountants (IKM) does not set accounting standards but supports the adoption and implementation process through its representation on the National Accounting Council, which advises the Ministry of Finance on accounting standard-setting matters. Under the Law on Accounting and Financial Statements No. 25/2018, public interest entities are required to apply International Financial Reporting Standards (IFRS Accounting Standards). 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, IKM supports implementation by participating in the IFRS translation review process, promoting adoption of the IFRS for Small and Medium-sized Entities Accounting Standard through its representation on the National Accounting Council, and providing member training and technical materials on IFRS Accounting Standards and National Accounting Standards. IKM also offers an IFRS Diploma program, cooperates with universities to incorporate IFRS into accountancy curricula, and participates in national and international standard-setting processes by commenting on exposure drafts.

IKM demonstrates sustained best-endeavors activity through standard-setting engagement, translation support, member education, and implementation guidance in an area where it does not have direct adoption authority. Accordingly, the SMO 7 fulfillment assessment is Sustain.

Current Status: Sustain