Not all companies in Albania are subject to annual audit. The obligation depends on the company’s legal form, size, and financial thresholds as defined by law.
Statutory audits are designed to ensure transparency, prevent fraud, and provide assurance to shareholders, regulators, and tax authorities.
Who is Required to Undergo an Audit?
Under Albanian law, annual audits are mandatory for:
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All joint stock companies (sh.a) regardless of size or activity
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Limited liability companies (sh.p.k) that exceed two of the following three criteria for two consecutive years:
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Annual turnover over 40 million ALL
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Total assets over 40 million ALL
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More than 30 employees
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Additionally, companies involved in regulated sectors such as banking, insurance, and investment funds are required to undergo audits regardless of their size or legal form.
Appointment of an Auditor
Companies that meet audit thresholds must appoint a licensed statutory auditor or an audit firm registered with the National Registration Center and supervised by the Institute of Authorized Chartered Auditors of Albania (IEKA).
The auditor must be independent from the company and is typically appointed by the general assembly of shareholders.
The appointment must be registered with the National Business Center (QKB).
Audit Process and Deadlines
Audited financial statements must be completed and submitted within six months after the end of the financial year. This includes:
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Balance sheet
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Profit and loss statement
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Cash flow statement
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Notes to the financial statements
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Auditor’s report
The final audit report must be filed with the National Registration Center and the tax authorities.
Late submission may result in administrative fines or the suspension of certain business rights.
Exemptions and Voluntary Audits
Companies that do not meet the audit criteria are exempt, but may still choose to conduct a voluntary audit for internal control, investor reporting, or financial transparency—especially when preparing for funding, sales, or foreign partnerships.
Some investors or government programs may require an audit as part of their due diligence process, even if the company is below the legal threshold.