North Macedonia

The Trade Companies Law establishes the basic financial reporting and statutory audit requirements for all companies in the Republic of North Macedonia. The law sets out the applicable accounting framework, identifies the parties responsible for the preparation, approval, and filing of financial statements, and classifies entities as micro, small, medium-sized, and large.

The Ministry of Finance (MoF) is responsible for prescribing the applicable financial reporting framework through publication in the Official Gazette. In April 2024, the MoF published Official Gazette No. 75/2024 adopting the 2023 International Financial Reporting Standards (IFRS) translated into Macedonian. These standards became effective as of January 1, 2025, and apply to large and medium-sized commercial entities, banks, insurance companies, pension funds, financial institutions, listed companies, other entities specified by law, and all subsidiaries of such entities.

Entities not required to apply full IFRS apply the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), which has been part of the national framework since 2012. The World Bank’s 2014 Report on the Observance of Standards and Codes notes that, in practice, many smaller entities prepare annual accounts consisting primarily of a balance sheet, income statement, and notes, using IFRS for SMEs as guidance.

Regulated entities are also subject to additional sector-specific reporting requirements issued by their respective regulators, including the National Bank of the Republic of North Macedonia (NBRNM), the Insurance Supervision Agency (ISA), the Securities and Exchange Commission (SEC), the Agency for Supervision of Fully Funded Pension Insurance, and the MoF.

The Trade Companies Law also establishes the thresholds for statutory audits. Large and medium-sized joint-stock companies, listed companies, and large and medium-sized limited liability companies are subject to mandatory audit requirements.

The Audit Law establishes the statutory audit framework and requires audits to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB), translated into Macedonian, and published in the Official Gazette. The World Bank’s 2014 Report on the Observance of Standards and Codes noted that the clarified 2009 ISA had been translated and gazetted, and the jurisdiction has since continued its process of updating standards through translation and publication.

Audits of regulated entities are subject to additional requirements established by the relevant supervisory authorities, including audit rotation and sector-specific auditor eligibility requirements.

The accountancy profession in North Macedonia is regulated based on professional designation. Certified auditors are regulated under the Audit Law, while accountants and certified accountants are regulated under the Law on Accounting Practice. The profession therefore operates under a shared regulatory framework involving statutory authorities and professional accountancy organizations.

Auditors

The Audit Law establishes the legal framework for the regulation of auditors and aligns the jurisdiction’s audit oversight arrangements with the requirements of the European Union Statutory Audit Directive. The law defines the roles and responsibilities of the Council for Advancement and Oversight of Audit (CAOA) and the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM), and sets requirements related to initial professional development, continuing professional development, quality assurance, ethical requirements, and investigative and disciplinary procedures.

The CAOA serves as the independent public oversight authority for the audit profession. Its responsibilities include issuing licenses to practice auditing, overseeing the activities of ICARNM, and undertaking investigative and disciplinary actions where necessary.

ICARNM is the professional body with mandatory membership for certified auditors, audit firms, and certified auditor sole proprietors. In accordance with the Audit Law, ICARNM is responsible for maintaining registries of auditors and audit firms; organizing and conducting professional examinations; issuing auditor certificates; establishing and monitoring continuing professional development requirements; enforcing compliance with applicable auditing and ethical standards; carrying out quality assurance reviews; initiating investigative and disciplinary procedures for members; and translating International Standards on Auditing, the International Code of Ethics for Professional Accountants (including International Independence Standards), and other relevant international standards into Macedonian for publication in the Official Gazette.

To qualify as a certified auditor, candidates must hold a university degree in a relevant field, complete the prescribed professional education program, pass the professional examinations administered by ICARNM, and obtain at least three years of relevant practical experience, including supervised audit experience. Upon certification by ICARNM, candidates must obtain a practicing license from the CAOA in order to perform statutory audits and related assurance services.

Auditors of regulated entities, including banks and insurance companies, are subject to additional sector-specific eligibility requirements established by the relevant supervisory authorities.

Accountants

Accountants and certified accountants are regulated under the Law on Accounting Practice, originally introduced in 2012 and substantially updated in 2022 to strengthen the regulatory framework for the profession. The Ministry of Finance (MoF) oversees the legislative framework, while implementation responsibilities are assigned to the Institute of Accountants and Certified Accountants (IACA).

Under the law, individuals may qualify as accountants or certified accountants depending on their academic qualifications and practical experience. Accountants may prepare and sign annual accounts for sole proprietors and non-profit organizations, while certified accountants may prepare and sign annual accounts and financial statements for all legal entities. Membership in IACA is mandatory for individuals holding these designations.

IACA is responsible for maintaining professional registries; organizing examinations; issuing and revoking certificates and licenses; establishing continuing professional development requirements; supporting implementation of applicable ethical requirements; and translating IFRS and the IFRS for SMEs Accounting Standard.

The Audit Law established the Council for Advancement and Oversight of Audit (CAOA) as the independent public oversight authority for the audit profession in North Macedonia. The CAOA is responsible for carrying out public oversight of statutory auditors and audit firms and operates under the authority provided by the national audit legislation.

In accordance with the Audit Law, the principal responsibilities of the CAOA include issuing licenses to practice auditing, overseeing the activities of the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM), monitoring the operation of the quality assurance review system, and undertaking investigative and disciplinary actions where necessary. The CAOA may also request specific quality assurance reviews to be carried out by ICARNM and oversees the Institute’s implementation of its statutory responsibilities.

ICARNM remains responsible for operational matters relating to the audit profession, including maintaining professional registries, conducting professional examinations, administering continuing professional development, carrying out quality assurance reviews, and initiating investigative and disciplinary procedures for its members, all subject to the oversight of the CAOA.

The CAOA is not listed as a member of the International Forum of Independent Audit Regulators (IFIAR) as of the date of this update.

Institute of Accountants and Certified Accountants (IACA)

The Institute of Accountants and Certified Accountants (IACA) was established in 2012 pursuant to the Law on Accounting Practice as the professional accountancy organization for accountants and certified accountants in North Macedonia. Membership is mandatory for accountants, certified accountants, sole proprietors performing accounting services, and accounting service companies operating under the law. The legal framework was further strengthened through amendments adopted in 2022.

In accordance with the Law on Accounting Practice, IACA is responsible for maintaining the registers of accountants, certified accountants, sole proprietors-accountants, sole proprietors-certified accountants, and companies performing accounting activities. The Institute is also responsible for organizing and conducting professional examinations, issuing and revoking certificates and work licenses, recognizing foreign qualifications, organizing continuing professional development, and monitoring compliance with applicable professional and ethical requirements.

In addition, IACA supports the implementation of financial reporting standards by facilitating access to applicable legislation, professional guidance, and continuing education related to IFRS and the IFRS for SMEs Accounting Standard.

Institute of Certified Auditors of Republic of North Macedonia (ICARNM)

The Institute of Certified Auditors of the Republic of North Macedonia (ICARNM) was established in 2006 under the Audit Law as the professional body for the audit profession. Membership is mandatory for certified auditors, audit firms, and certified auditor sole proprietors.

Under the Audit Law, ICARNM is responsible for maintaining registries of certified auditors and audit firms; organizing and conducting professional examinations; issuing auditor certificates; establishing and delivering continuing professional development activities; enforcing compliance with applicable auditing and ethical standards; carrying out quality assurance reviews; initiating investigative and disciplinary procedures; and translating and publishing relevant international standards, including ISA and the International Code of Ethics for Professional Accountants (including International Independence Standards).

The Institute also undertakes activities aimed at promoting high professional standards and improving the quality of audit services in the jurisdiction. ICARNM became an IFAC Associate in 2010 and an IFAC Member in 2013.

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

The scope of the QA review system covers all statutory audits and other assurance engagements. Reviews are conducted using a cyclical and risk-based approach, with annual QA work programs and reports prepared by ICARNM. The system has been operational since 2010 and covers the substantial majority of audit engagements in the jurisdiction.

ICARNM has developed and maintains a QA Rulebook and reports that the system is aligned with the requirements of SMO 1, including the operation of an external review system for all mandatory audits, oversight arrangements, reviewer qualifications, and follow-up procedures.

With respect to relevant quality management standards, International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised) are adopted and form part of the applicable quality management framework in the jurisdiction. ICARNM is actively supporting implementation through continuing professional development activities, seminars, and dissemination of implementation materials. Accordingly, the QA review system remains operational and aligned with SMO 1 requirements.

Current Status: Adopted

Initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants are established in national legislation. The Audit Law sets out the requirements for auditors, while the Law on Accounting Practice, first established in 2012 and updated in 2022, establishes the requirements for accountants and certified accountants.

For auditors, 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), together with universities, is responsible for implementing IPD and CPD requirements. 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, and complete at least three years of practical experience in audit, including at least two years under the supervision of a practicing auditor.

The World Bank’s 2017 Accountancy Education Benchmarking Study found that master’s programs benchmarked well against the International Education Standards (IES) then in effect. At the same time, the study identified areas for further alignment, including financial reporting and information technology learning outcomes, additional public sector accounting content, and the practical experience framework under IES 5, which remained primarily time-based rather than competency-based.

ICARNM’s professional education program and syllabus are largely benchmarked against the Association of Chartered Certified Accountants (ACCA) qualification framework. ICARNM reports that its syllabus was updated to strengthen alignment with ACCA, with eight out of thirteen examination exemptions granted.

Certified auditors are subject to 120 hours of CPD over a three-year period, with a minimum annual requirement prescribed in law. The World Bank study further notes that adoption of an output-based CPD approach aligned with IES 8 remains an area for further improvement. ICARNM reports that it continues to enhance its CPD framework.

For other professional accountants, the Institute of Accountants and Certified Accountants (IACA) is responsible for implementing qualification and CPD requirements. Accountants are required to complete secondary education and relevant practical experience, while certified accountants must hold a university degree and at least three years of accounting experience. IACA members are also subject to CPD requirements.

While substantial elements of the IES framework are incorporated into the national system, full alignment with the latest IES in effect at the time of the assessment, particularly with respect to competency-based practical experience and output-based CPD requirements, is not yet fully demonstrated for all professional accountants.

Current Status: Partially Adopted

In accordance with the Audit Law, statutory audits in North Macedonia are required to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB), translated by the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM), and published in the Official Gazette.

As of the date of this assessment, the standards in effect correspond to the 2025 edition of the Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements, including the International Standards on Quality Management and all ISA effective as of the time of assessment.

The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), issued by the IAASB and effective for audits of periods beginning on or after December 15, 2025, has been issued internationally. However, separate national adoption or gazetting of ISA for LCE in North Macedonia has not yet been evidenced and remains to be clarified. This does not affect the overall ISA adoption assessment.

Current Status: Adopted

All professional accountants in North Macedonia are required to comply with the International Code of Ethics for Professional Accountants (including International Independence Standards) as established under the applicable legal framework, including the Audit Law and the Law on Accounting Practice.

For certified auditors, the Audit Law requires the adoption of the Code as issued by the International Ethics Standards Board for Accountants (IESBA), translated by the Institute of Certified Auditors of the Republic of North Macedonia (ICARNM), and published in the Official Gazette.

For accountants and certified accountants, the Institute of Accountants and Certified Accountants (IACA), in accordance with the Law on Accounting Practice, is responsible for enforcing compliance with the Code as published in the Official Gazette and incorporated into the national legal framework.

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) as issued by the IESBA and applicable to all professional accountants in the jurisdiction. Accordingly, the Code in effect at the time of the assessment is adopted for all professional accountants in North Macedonia.

Current Status: Adopted

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 World Bank Centre for Financial Reporting Reform’s 2022 Book on Public Sector Accounting Reforms Implementation Status in PULSAR Countries, central government institutions in North Macedonia continue to follow the Law on Accountancy of the Budget and Budget Beneficiaries, which stipulates national cash-basis accounting standards, while state-owned entities follow national standards based on International Financial Reporting Standards (IFRS).

The 2022 World Bank reports indicate an ongoing transition toward modified accrual-basis standards, and 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.

A Macedonian translation of cash-basis IPSAS, through the Rulebook on Financial Reporting, was published in Official Gazette No. 116 of December 29, 2005, by the Ministry of Finance. Subsequently, a Macedonian translation of the 2012 Handbook of International Public Sector Accounting Pronouncements was prepared by the Centre of Excellence in Finance.

However, as of the date of this assessment, IPSAS have not been formally adopted as the applicable public sector accounting framework in the jurisdiction.

Current Status: Not Adopted

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) system for auditors. The CAOA also has authority under the law to investigate and discipline auditors and may revoke practicing licenses where necessary.

ICARNM has established a Disciplinary Committee and related procedures for the implementation of its I&D system. ICARNM reports that its I&D Rulebook was updated in 2018 to reflect amendments to the Audit Law, new bylaws, and key components of Statement of Membership Obligations 6 (SMO 6), including the independence of the Disciplinary Committee, defendants’ rights, and more precise sanctioning procedures. ICARNM also reports that the system has been used in practice, including for matters arising from quality assurance review findings, continuing professional development obligations, and membership fee compliance.

For accountants and certified accountants, the Institute of Accountants and Certified Accountants (IACA), established under the Law on Accounting Practice, has disciplinary responsibilities within its mandate. IACA’s website indicates that the Institute has a Disciplinary Committee and that the Chair decides on complaints following disciplinary measures. The Institute is also authorized to issue and revoke certificates and work licenses and to monitor the application of the Code of Ethics for Professional Accountants.

However, while there is clear evidence that an operational I&D system exists for auditors through ICARNM and CAOA, full jurisdiction-level alignment with SMO 6 for all professional accountants is not yet fully demonstrated on the basis of publicly available information. In particular, the publicly available framework for IACA does not yet provide sufficient evidence to conclude that all SMO 6 requirements are fully incorporated and operational across all regulated segments of the profession. Accordingly, the I&D system at the jurisdiction level remains Partially Adopted.

Current Status: Partially Adopted

In accordance with the Trade Companies Law, the Ministry of Finance (MoF) is authorized to prescribe the applicable corporate financial reporting framework in North Macedonia. All companies are required to prepare financial statements in accordance with the standards issued by the MoF and published in the Official Gazette.

In April 2024, the MoF published Official Gazette No. 75/2024 adopting the 2023 International Financial Reporting Standards (IFRS) translated into Macedonian as the applicable financial reporting 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.

As of the date of this assessment, the accounting standards in force correspond to the 2025 edition of IFRS Accounting Standards in effect at the time of the assessment and applicable to all domestic publicly accountable entities in consolidated general purpose financial statements. Accordingly, the jurisdiction adoption status remains Adopted.

The Official Gazette also reconfirmed the application of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) for all other entities, including smaller entities not required to apply full IFRS. IFRS for SMEs has been part of the national reporting framework since 2011 and remains applicable for non-publicly accountable entities.

Under the Law on Accounting Practice, as updated in 2022, the Institute of Accountants and Certified Accountants (IACA), in coordination with the MoF, is responsible for supporting the translation and implementation of IFRS and IFRS for SMEs.

Current Status: Adopted

Relevant Organizations

Council for Advancement and Oversight of Audit (CAOA)

Institute of Accountants and Certified Accountants (IACA)

Institute of Certified Auditors of the Republic of North Macedonia (ICARNM)

Ministry of Finance

Relevant Legislation

Audit Law

Trade Companies Law

Relevant Publications

IFRS Foundation, IFRS Application Around the World: Jurisdictional Profile – North Macedonia, 16 June 2016

World Bank, Report on the Observance of Standards and Codes (ROSC), Accounting and Auditing: Republic of North Macedonia, September 2014