Albania

In Albania, the Law on Accounting and Financial Statements No. 25/2018 establishes the financial reporting framework applicable to entities operating in the jurisdiction. The law classifies entities as micro, small, medium-sized, or large based on total assets, revenues, and average number of employees.

Two financial reporting frameworks apply depending on the nature and size of the entity: National Accounting Standards (NASs) and International Financial Reporting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board and translated into Albanian by the National Accounting Council (NAC).

Public interest entities (PIEs) are required to apply IFRS Accounting Standards. PIEs include listed companies, banks and non-bank financial institutions, insurance and reinsurance companies, investment and pension funds, and other entities designated by the Council of Ministers as being of public interest due to the nature, size, or number of employees of the entity. Council of Ministers Decision No. 17/2019 further specifies the criteria used to determine PIE status.

Micro, small, and medium-sized entities generally apply NASs issued by the NAC and approved by the Ministry of Finance. Entities applying NASs may elect to apply full IFRS Accounting Standards voluntarily. The NAS framework is based on international standards and was revised with World Bank support to align more closely with the IFRS for Small and Medium-sized Entities Accounting Standard.

Banks are required to apply IFRS Accounting Standards for general purpose financial reporting. However, according to World Bank assessments, prudential reporting requirements established by the Bank of Albania continue to incorporate separate supervisory reporting methodologies. Reforms supported by the World Bank and aligned with the European Banking Authority FINREP framework are expected to further align prudential reporting with IFRS Accounting Standards.

Statutory audit requirements are established under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, initially enacted in 2009 and subsequently amended in 2016 and 2025. The law regulates statutory audits, establishes the framework for the audit profession, and requires the application of International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board for mandatory audits of entities meeting prescribed thresholds, including PIEs and joint stock companies.

In Albania, the accountancy profession is regulated under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091 of 2009, as amended, including by Law No. 126/2024. The law establishes requirements for statutory auditors and certified accountants, including initial professional development, professional examinations, continuing professional development, ethical requirements, registration, quality assurance, and investigation and discipline. The Public Oversight Board (POB) is the public authority responsible for oversight of statutory auditors, audit firms, certified accountants, and recognized professional accountancy organizations.

The POB’s responsibilities include maintaining the legal and regulatory framework for professional oversight, approving and supervising relevant regulations, overseeing the professional competence examination process, maintaining public registers, supervising continuing professional development, conducting or overseeing quality assurance reviews, and administering investigation and disciplinary procedures. The POB’s sub-legal framework includes regulations on examinations, quality assurance, investigation and disciplinary procedures, certified accountants and their professional organizations, registration, and institutional cooperation.

Entry into the profession is regulated through education, practical experience, professional training, and examinations. Candidates for statutory auditor and certified accountant status are subject to professional competence examinations under the oversight of the POB. The Professional Skills Examination Commission operates within this framework and includes representation from relevant public authorities and professional bodies.

The audit profession is regulated under Law No. 10091, as amended. The Albanian Institute of Authorized Chartered Auditors (IEKA) is the recognized professional organization for statutory auditors and audit firms operating in Albania. Membership in IEKA is mandatory for practicing statutory auditors. IEKA supports the audit profession through professional education, translation and publication of applicable international standards, member support, and professional regulation under POB oversight.

The certified accountant profession is regulated under Law No. 10091 and Regulation No. 9 of 2019 on the regulation and oversight of certified accountants and their professional organizations. Certified accountants are required to meet education, experience, examination, and membership requirements and to belong to a recognized professional accountancy organization. The Institute of Certified Accountants (IKM) was fully recognized by the POB in 2022, and the Association of Accountants and Finance Professionals of Albania (SHKFSH) was fully recognized in 2024.

Statutory auditors providing services to regulated financial institutions are also subject to sector-specific requirements. The Bank of Albania and the Albanian Financial Supervisory Authority exercise supervisory responsibilities over banks, insurance companies, capital market entities, and other regulated financial institutions, including approval and oversight requirements relevant to auditors of those entities.

Independent public oversight of the audit profession in Albania is carried out by the Public Oversight Board (POB), which was established under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091 and related secondary legislation. The POB operates as an independent regulatory authority responsible for ensuring that statutory auditors and audit firms are subject to a quality assurance system that supports audit quality and protects the public interest.

The POB exercises oversight both directly, through supervision of statutory auditors and audit firms, and indirectly, through oversight of the professional organization of statutory auditors. Its responsibilities include overseeing the registration and testing of statutory auditors and audit firms; approving the format of the public register; approving the Code of Ethics for statutory auditors and audit firms; supervising quality control carried out by the professional organization; overseeing continuing professional education; approving investigation and disciplinary regulations; conducting additional investigations where necessary; deciding on disciplinary cases within its competence; and approving and supervising the statutes and functioning of professional organizations in the field of accounting.

The POB is a member of the International Forum of Independent Audit Regulators (IFIAR). The IFIAR member directory identifies the Public Oversight Board of Albania as the audit oversight authority for Albania.

The Albanian Institute of Authorized Chartered Auditors (IEKA)

The Albanian Institute of Authorized Chartered Auditors (IEKA) is the legally recognized professional accountancy organization for statutory auditors and audit firms in Albania under the Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended. IEKA operates as a non-profit professional organization representing statutory auditors engaged in public practice, either individually or through audit firms. Membership in IEKA is mandatory for practicing statutory auditors.

IEKA supports the regulation and development of the audit profession under the oversight of the Public Oversight Board (POB). Its responsibilities include supporting professional education and continuing professional development for statutory auditors; translating and publishing International Standards on Auditing and related pronouncements in the Albanian language; contributing to implementation of international standards; supporting ethical and professional requirements aligned with the International Code of Ethics for Professional Accountants (including International Independence Standards); and participating in investigation and disciplinary arrangements in cooperation with the POB.

In addition to its national role, IEKA is a member of the International Federation of Accountants and the South Eastern Europe Partnership on Accountancy Development network.

The Albanian Institute of Certified Accountants (IKM)

The Albanian Institute of Certified Accountants (IKM) is a non-governmental and non-profit professional accountancy organization representing certified accountants in Albania. The organization was originally established in 2000 and subsequently restructured as IKM in 2006.

IKM’s membership is comprised primarily of certified accountants providing services in areas including accounting, bookkeeping, preparation of financial statements, tax advisory services, financial management consulting, internal control, internal audit, and other non-assurance services.

Under the regulatory framework established by the Public Oversight Board, IKM was formally recognized in 2022 as a professional accountancy organization for certified accountants. The organization supports the professional development of its members through continuing professional development activities, implementation support, and maintenance of professional and ethical requirements applicable to certified accountants in Albania.

IKM is a member of the International Federation of Accountants.

The Association of Accountants and Financiers of Albania (SHFKSH)

SHFKSH is a professional organization representing accountants, finance professionals, academics, students, and other professionals involved in the accounting and finance sectors in Albania.

Under the regulatory framework established by the Public Oversight Board, SHKFSH received formal recognition in 2024 as a professional accountancy organization for certified accountants.

SHKFSH supports professional development and training activities for its members and participates in initiatives related to the development of the accountancy profession in Albania. SHKFSH is not a member of the International Federation of Accountants.

he Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, establishes a mandatory quality assurance (QA) review system for statutory auditors and audit firms in Albania. The Public Oversight Board (POB) is responsible for public oversight of the system and supervises statutory auditors and audit firms directly and through oversight of the professional organization of statutory auditors. The POB’s responsibilities include supervising quality control carried out by the professional organization, overseeing continuing professional education, conducting additional investigations where necessary, and deciding on disciplinary matters within its competence.

The POB’s regulatory framework includes a dedicated regulation on QA review procedures and the organization and functioning of the QA system for statutory auditors and audit firms. The POB website also identifies the professional standards applicable to statutory auditors and audit firms as mandatory for implementation.

In May 2025, the POB issued Decision No. 15 declaring the professional standards applicable to statutory auditors and audit firms. The decision requires application of the international auditing and assurance standards listed in the official publication, including International Standard on Quality Management (ISQM) 1 and ISQM 2, both effective December 15, 2022.

Based on the legal and regulatory framework, Albania has established an operational QA review system for statutory audits that is aligned with the relevant requirements of SMO 1.

Current Status: Adopted

The Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, establishes initial professional development and continuing professional development requirements for statutory auditors and certified accountants in Albania. The Public Oversight Board (POB) oversees the professional qualification process, including examinations, certification, and continuing professional development requirements for regulated segments of the profession.

Entry requirements for statutory auditors and certified accountants include completion of university-level education, practical experience requirements, professional examinations, and continuing professional development. The Professional Skills Examination Commission operates under the oversight of the POB and includes representatives from public authorities and professional accountancy organizations. Professional accountancy education programs are delivered through universities, higher education institutions, and professional accountancy organizations.

The Albanian Institute of Authorized Chartered Auditors (IEKA) reports that its professional education, examination, and continuing professional development framework for statutory auditors is aligned with the International Education Standards (IES), including requirements relating to professional competence, practical experience, professional values and ethics, assessment, and continuing professional development. IEKA requires statutory auditors to complete 120 hours of continuing professional development over a three-year period.

The Institute of Certified Accountants (IKM), which was formally recognized by the POB in 2022, also operates professional education and continuing professional development arrangements for certified accountants. IKM requires members to complete 40 hours of continuing professional development annually and has incorporated assessment-based approaches into its training activities.

The World Bank 2019 Report on the Observance of Standards and Codes Accounting and Auditing noted that Albania’s university-level accounting education framework generally aligns with the IES requirements and identified ongoing reforms to strengthen practical experience monitoring and professional assessment arrangements for certified accountants. The Strengthening Quality of Auditing and Reporting Project supported by the World Bank Centre for Financial Reporting Reform continues to support enhancements to professional education, examinations, and practical experience systems in Albania.

While significant elements of the education framework are aligned with the IES requirements, gaps remain in the monitoring and implementation of practical experience and assessment arrangements across all segments of the profession. Accordingly, the IES adoption assessment is Partially Adopted.

Current Status: Partially Adopted

The Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, requires application of International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB), translated, and adopted for application in Albania for all statutory audits. The Albanian Institute of Authorized Chartered Auditors (IEKA) is responsible for the translation of ISA.

IEKA and the Society of Certified Accountants and Auditors of Kosovo (SCAAK) established a joint translation arrangement to support the translation of new and revised ISA. Albania currently applies the Albanian translation of the 2018 IAASB Handbook. IEKA and SCAAK have completed translation of the 2021 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, which is pending approval by the Public Oversight Board (POB). Accordingly, as the latest ISA in effect at the time of assessment have not yet been adopted for application, the ISA adoption assessment remains Partially Adopted.

ISA for Audits of Financial Statements of Less Complex Entities (ISA for LCE) has been adopted for application in Albania.

Current Status: Partially Adopted

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) as translated and adopted for application in Albania. The Public Oversight Board (POB) approves the Code of Ethics for statutory auditors and audit firms, as prepared and proposed by the professional organization of statutory auditors, and supervises its implementation.

The Albanian Institute of Authorized Chartered Auditors (IEKA), in cooperation with the Society of Certified Accountants and Auditors of Kosovo (SCAAK), is responsible for supporting the translation process. The 2023 International Code of Ethics for Professional Accountants has been translated for POB approval.

The Institute of Certified Accountants (IKM) applies the Code as translated by IEKA and maintains supplementary ethical requirements aligned with the relevant sections of the Code for certified accountants. The Association of Accountants and Finance Professionals of Albania (SHKFSH), recognized by the POB in 2024 as a professional accountancy organization for accountants, is not an IFAC member and public information on its ethical requirements remains limited.

Current Status: Partially Adopted

The authority responsible for establishing public sector accounting standards in Albania is the Ministry of Finance of Albania (MoF), which receives the opinion of the National Accounting Council on this subject in accordance with Law on Accounting and Financial Statement No. 9228 of 2004. According to the World Bank’s Stocktaking of Public Sector Accounting and Reporting Environment in PULSAR Beneficiary Countries—Albania (2020) and the World Bank’s Public Sector Accounting Reforms Implementation Status in PULSAR Countries (2022), national standards are cash basis with accrual accounting elements relating to assets and liabilities.

Public financial management reforms are underway to support adoption and implementation of accrual-basis standards based on International Public Sector Accounting Standards (IPSAS). With funding from the Swiss State Secretariat for Economic Affairs (SECO), the World Bank is supporting the MoF in implementation of the reform strategy. First-time implementation of IPSAS-based standards is expected by 2027.

Current Status: Not Adopted

The Law on Statutory Audit and Organization of the Accountancy Profession No. 10091, as amended, authorizes the Public Oversight Board (POB) to investigate and discipline 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 Albanian Institute of Authorized Chartered Auditors (IEKA) continues to operate an investigation committee for its members and refers relevant cases to the POB, which has legal authority to impose sanctions, including removal or restriction of practicing rights. Auditors of entities regulated by the Bank of Albania and the Financial Supervisory Authority are also subject to sector-specific reporting and oversight requirements, and the POB cooperates with other regulators where relevant.

For certified accountants, investigation and disciplinary mechanisms are established through recognized professional accountancy organizations. The Albanian Institute of Certified Accountants (IKM) reports that its investigation and discipline procedures are aligned with Statement of Membership Obligation 6. The Association of Accountants and Finance Professionals of Albania (SHKFSH) was recognized as a professional accountancy organization in 2024, but public information on the operation and alignment of its investigation and discipline system remains limited.

Accordingly, while investigation and discipline arrangements are established for statutory auditors and through recognized professional accountancy organizations, public information does not yet demonstrate full alignment across all professional accountants.

Current Status: Partially Adopted

Under the Law on Accounting and Financial Statements No. 25/2018, public interest entities (PIEs) are required to apply International Financial Reporting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board. PIEs include listed companies, banks and non-bank financial institutions, insurance and reinsurance companies, investment and voluntary pension funds, and other entities designated as being of public interest based on the nature, size, or number of employees of the entity. The IFRS Foundation jurisdiction profile indicates that Albania has adopted IFRS Accounting Standards, that the standards are incorporated into law, and that new and amended IFRS Accounting Standards are automatically covered by the accounting law without modifications.

Micro, small, and medium-sized entities apply National Accounting Standards issued by the National Accounting Council and approved by the Ministry of Finance. The standards were revised with World Bank support to align more closely with the 2009 IFRS for Small and Medium-sized Entities Accounting Standard.

As IFRS Accounting Standards as issued by the International Accounting Standards Board are required for PIEs and incorporated into law without modification, the jurisdiction-level framework is aligned with the relevant SMO 7 requirements.

The IFRS for Small and Medium-sized Entities Accounting Standard has not been adopted in Albania. SMEs apply National Accounting Standards, although the framework has been revised to align more closely with the 2009 IFRS for SMEs Accounting Standard.

Current Status: Adopted

Relevant Organizations

Bank of Albania

Institute of Authorized Chartered Auditors of Albania (IEKA)

Institute of Certified Accountants (IKM)

National Accounting Council of Albania

Public Oversight Board of Albania (POB)

Society of Certified Accountants and Auditors of Kosovo (SCAAK)

World Bank Centre for Financial Reporting Reform (CFRR)

Relevant Legislation

Council of Ministers Decision No. 17/2019 on Public Interest Entities

Law No. 10091 on Statutory Audit and Organization of the Accountancy Profession, as amended

Law No. 25/2018 on Accounting and Financial Statements

Public Oversight Board Regulation No. 4/2018 on Investigation and Disciplinary Procedures

Public Oversight Board Regulations and Professional Standards Framework

Relevant Publication

Assessment Report under the IAIS Multilateral Memorandum of Understanding, Albania (2022–2023)

IFIAR Member Directory – Albania Public Oversight Board

IFRS Foundation Jurisdiction Profile – Albania

Public Sector Accounting Reforms Implementation Status in PULSAR Countries (2022)

Stocktaking of Public Sector Accounting and Reporting Environment in PULSAR Beneficiary Countries—Albania (2020)