AUDITING

Statutory audit


The statutory audit is provided to clients whose duty is to review their financial statement as stipulated by law, as well as for the clients who voluntarily decide for this method of verification of the financial statement in order to obtain an independent view of their bookkeeping.

The role of the auditor and the basic principles of statutory audit are stipulated by the Law no. 1091 Dated 5 March 2009 in regards to “Statutory Auditing for the organization of the profession of the certified chartered auditor and accountant” . We conduct our audit in accordance with the International Standards of Auditing. We usually commence cooperation with clients during the course of the audited period.

The audit usually consists of two parts:

The audit, concentrates on the review of the internal control system of the client. This audit takes place in the second half of the accounting period. The output of the audit is an "Interim Audit Report," which is conceived in the form of findings and recommendations so that the contingent shortcoming could be eliminated before the end of the accounting period.

The final audit regarding review of the financial statement, i.e., balance sheet, profit and loss statement and appendices to the financial statement including the cash flow statement. The audit also contains the review of the client's annual report. The output of the audit is the "Auditor's Report on the Review of Financial Statement" including the opinion of the auditor. Apart from this, the client is informed of all significant facts discovered in the course of the review procedure, including the respective recommendations in the form of the "Letter of Management".

The auditor review is conducted by a working team that is lead by an auditor responsible for communication with the client and for the auditing itself.

The outputs of the audit are provided in the Albanian and English languages; if necessary we also provide translation into other languages. The price of the statutory audit is determined as a fixed amount dependent on the presumed duration of the audit and with regard to the difficulty of the review of the financial statement of the specific client.


Internal audit


An internal audit assists the accounting unit in the improvement of the efficiency of management and control processes. The goals and the scope of the internal audit depends on the size and structure of the accounting unit and on the specific requirements of the management (e.g., review of the internal control system, review of financial management, audit of financial and operational data, etc.) Detailed audit in areas is specified by the client.


Tax Audit


According to the Law No. 9920, dated 19.5.2008 "On Tax Procedures in the Republic of Albania" during 2016, the company is listed by the Ministry of Finance as of 10 companies that have the right to perform the certification service of tax declarations in the Republic of Albania. This service, which will replace the tax inspections at the subjects, is in embryonic phase after other legal arrangements are required. This audit is one of the most popular audit services. The purpose of the tax audit is to expertise identified mistakes in accounting and taxing systems and to develop measures for their correction. During the tax audit tax bases for each tax are reviewed, tax accounting and tax reporting are audit in complex and separately for each tax. Result of the tax audit is a tax risks estimate and advice on risks minimization. Based on the results of the tax audit the client receives professional recommendations for correction of identified mistakes. The tax audit is an independent review of accounting and taxing systems with a view to accuracy of formation of tax base for each tax, calculations and payments of tax and duties within the certain period, status of payments to budget and extra-budgetary funds, compliance of accounting and taxing systems with requirements of existing legislation