- Legal audit is mandatory for public interest entities and for entities that meet two of the three criteria, for two consecutive years.
- The criteria are active for companies with over 50,000,000 lek in assets, over 100,000,000 lek in revenue, and an average of over 50 employees.
- Law No. 126/2024 removed the exemption from professional practice for holders of CPA and ACCA titles.
- The three-year professional practice now requires eight months in providing assurance for sustainability reporting.
- Providing assurance for sustainability reporting is not mandatory until the 2027 reporting period.
Legal audit is the independent examination of financial statements by a registered auditor. The obligation arises from the entity's status or from exceeding the thresholds, not from the business's choice.
The rules of the profession are set by Law No. 10091 of March 5, 2009, as amended. Its most recent amendment is Law No. 126/2024, dated December 19, 2024, promulgated by Decree No. 1, dated January 9, 2025.
In August 2026, this law will be fully in effect. The changes it introduced affect two groups: the economic entities that are audited and the auditors who conduct the audits.
Read also: Financial and accounting security, who is audited, and the categories of entities
Read also: National Accounting Standards, NAS 1 through NAS 15
Who is required to be audited
The obligation is divided into two pathways. The first pathway is status, because public interest entities are always audited, regardless of size. The second pathway is size, measured by three indicators.
When two of the three indicators are met for two consecutive years, an audit becomes mandatory. It's enough for just one indicator not to be met to remain out, but the assessment is based on the two years, not on a single year.
| Indicator | The threshold | From which it is taken |
|---|---|---|
| Total assets | Over 50,000,000 lek | Year-end balance |
| Annual income | Over 100,000,000 lek | Income Statement |
| Number of employees | On average over 50 | Annual average payroll |
The verification of your case is based on the returns for the last two years. The categorization of the unit as micro, small, medium, or large is a separate matter, with different thresholds, and is found on the page of financial security.
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What changed for auditors and audit firms?
The second group of changes affects the profession. They do not create new obligations for the auditable business, but change who can perform the audit and how quality is controlled.
Professional practice and removed exemptions
The three-year internship now has defined content. Eight months are required for providing assurance on the annual and consolidated sustainability reporting, and two-thirds of the internship must be completed in Albania.
The most discussed change is the removal of the exemption. Holders of the international CPA and ACCA titles are no longer exempt from professional practice, so they follow the same path as other candidates.
Examinations and recognition of foreign qualifications
The examination program was expanded to include the disciplines of sustainability reporting, sustainability analysis, and due diligence processes. Candidates with foreign qualifications undergo additional testing on Albanian legislation and on National Accounting Standards.
Recognition of a foreign-registered certified accountant is possible when its program covers at least 751 TP 3T of the Albanian program. This is the threshold set by law.
Other technical changes affecting the profession
Public register. Now includes the auditor's approval status for the sustainability reporting and the supervisory authority's data.
Quality control. The Public Oversight Board may delegate quality control for non–public interest units to the professional organization, while retaining oversight.
Periodicity. For units of public interest, quality control is carried out at least once every three years.
The main partner. Auditing firms appoint a lead partner for sustainability engagements, based on independence criteria and sufficient resources.
Customer records. Detailed records are kept for clients, service fees, and engagement documentation.
The role of the professional organization. IEKA is taking a more active role in the ongoing training of auditors for sustainability reporting.
Transitional provisions. Existing auditors are not subject to the new sustainability requirements, while new candidates must meet them within three years.
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Sustainability reporting: who is affected and when
This is the part that creates the most unnecessary anxiety. Sustainability reporting does not affect small and medium-sized Albanian businesses, because the thresholds are very high.
According to Law No. 87/2026 on accounting, the obligation arises when the entity simultaneously exceeds 1,000 employees on average and 45 billion lek operating revenue. Implementation is mandatory as of the 2028 reporting period.
From an audit perspective, the transitional provisions of Law No. 126/2024 provide that the issuance of assurance on sustainability reporting is not mandatory until the 2027 reporting period. Both deadlines are to be read together, because assurance is issued on a report that already exists.
Protected unit in the value chain
This is the point that matters for the small supplier business. A unit with up to 1,000 employees, part of the value chain of a large entity, has the right to refuse information that exceeds voluntary standards.
A contractual provision that demands more is not binding. Therefore, a large client's request for extensive environmental or social data is not an automatic obligation.
What change is expected on the horizon?
The reform of regulated professions is underway and also affects auditing. The draft decision on the National Action Plan, released for public consultation in July 2026, provides for a review of the requirement that two-thirds of the practice be carried out within Albania.
This is not yet in effect and does not impose any new obligations on businesses. The changes are expected to be phased in gradually.
Read also: Regulated professions are reorganizing, what changes for auditing
What should the business check now?
Two checks are enough to know your position. First, measure the three indicators on the last two years' reports and see how many you exceed. Second, once two of them have been exceeded for two consecutive years, schedule the auditor in advance, because the engagement requires planning.
The submission of financial statements and the July 31 deadline are matters separate from the audit, but they are practically linked, because the auditor's opinion accompanies the statements. You can find the basic law on accounting and financial statements at Copy on our page, while the average number of employees, as an indicator of the criterion, is tracked by Declared payroll in e-Filing.
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Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation. Send me free notifications
Frequently asked questions
Who is required to conduct the legal audit?
Public interest units at all times, and units that meet two of the three criteria for two consecutive years. The criteria are assets exceeding 50,000,000 lek, revenues exceeding 100,000,000 lek, and an average of over 50 employees.
Is one year alone enough to cross the thresholds?
No, the assessment is made over two consecutive years. A single year above the thresholds does not create the obligation.
Did the audit criteria change with the new accounting law?
They did not change. Law No. 87/2026 amended the thresholds for the categories of economic units, effective as of the 2028 period, while the audit criteria remain in Law No. 10091/2009.
Are ACCA and CPA holders exempt from the internship?
Not anymore. Law No. 126/2024 removed this exemption, so professional practice is required for all candidates.
Does sustainability reporting affect small businesses?
It is not treated as mandatory. The threshold requires both over 1,000 employees and more than 45 billion lek in revenue, and it applies from the 2028 reporting period.
Can a major client require me to report sustainability data?
Not beyond voluntary standards when your unit has up to 1,000 employees and is part of the value chain. Otherwise, the contractual provision has no binding effect.
When is it mandatory to provide assurance for sustainability reporting?
According to the transitional provisions of Law No. 126/2024, it is not mandatory until the 2027 reporting period. The deadline is to be read together with the reporting requirement under the Accounting Law.
