Investigation, discipline and complaints

IKM oversees its members’ compliance with the law, the Statute, professional standards and the Code of Ethics. When a client, an institution, a member or any other person has reason to believe that a Certified Accountant or an Accounting Firm that is a member of IKM has acted contrary to these rules, they may file a complaint with the Institute. Complaints are examined by the Investigation Committee; disciplinary measures are proposed by the Disciplinary Committee and decided by the Managing Council, in accordance with the Statute, the Regulation “On the investigation procedure” and the Regulation “On the procedures for taking disciplinary measures”.

Complaints handled by the member

Every Certified Accountant and every Accounting Firm has an internal procedure for investigating and resolving complaints from clients and former clients, and informs new clients in writing of the person responsible and of their right to complain. A complaint received is investigated promptly by a person in a management position or with sufficient seniority, at no cost to the client, and, where it proves justified, is resolved by correcting the error, providing information, returning documents, or reducing or refunding the fee. The Investigation Committee may first refer a complaint to the member for internal investigation; the member informs the Committee in writing of every complaint resolved in this way.

Who may file a complaint and about what

Any interested person may file a complaint about any matter that constitutes a breach or incompatible conduct by a Certified Accountant or an Accounting Firm. The Investigation Committee also examines matters that do not arrive as complaints: reliable information available to the Managing Council, unsatisfactory results of the Quality Management Review and cases with sufficient indications of a breach. Breaches include, among others: failure to comply with the legal requirements of the profession, the Statute, the regulations and the decisions of the Public Oversight Board (BMP); breaches of the Code of Ethics; criminal activities; acts that damage the integrity and image of the profession; repeated cases of professional negligence; evident deficiencies found in the Quality Management Review; failure to provide information or the provision of incorrect information; failure to settle obligations towards the Institute. A complaint is also examined against a Certified Accountant who has left IKM, where the alleged breach occurred during the period of membership.

How to file a complaint

The complaint is submitted in writing, by email to info@ikm.org.al or ikm.alb@gmail.com, or by registered post to the Institute’s address, and contains at least:

• the details of the complainant, clearly identified;
• the details of the Certified Accountant or Accounting Firm that is the subject of the complaint;
• a description of the alleged breaches or of the specific circumstances, and when they occurred;
• documents or sources supporting the alleged facts.

After examining the complaint, the Investigation Committee notifies the complainant in writing that the complaint has been accepted and the procedure has begun; or that the complaint has deficiencies, setting a reasonable deadline for remedying them; or that further steps are needed before a decision on its acceptance. Anonymous complaints are not examined, except where the nature of the information puts the public interest at risk; in such cases the Managing Council gathers additional information from lawful sources and decides whether to propose that the Committee open an investigation. The complainant’s details are kept in full confidence until the evidence and facts have been gathered.

How the investigation is conducted

1. Opening. The Chair of the Investigation Committee begins the examination within ten days of receiving the complaint or the authorisation to investigate.
2. Notification of the member. The member under investigation is notified in writing of the matter and of their rights. Within ten days of receiving the notification, they submit their representations, opinions and explanations in writing.
3. Hearing. The member has the right to be heard in person or through a representative, on written request; the Committee schedules the hearing and gives notice of it at least ten days in advance. The hearing may also be held by videoconference. The parties may be assisted by an adviser and may present witnesses or additional documents.
4. Verification. The Committee gathers the evidence and documentation, requests information from the member and from third parties, and assesses whether the member’s conduct differed from what was expected in the circumstances. The member cooperates and submits the information requested; where the member does not respond, an additional ten-day deadline is set, and failure to cooperate is treated as an aggravating circumstance.
5. Conclusion. The investigation is concluded within 60 days of its start, with the possibility of extension by a reasoned decision notified to the member. The Investigation Committee submits to the Managing Council the report with its findings and proposes either closing the case or referring it to the Disciplinary Committee. The Investigation Committee does not impose disciplinary measures; its role is investigative and advisory.
6. Decision of the Managing Council. The Managing Council approves the proposal and sends the case to the Disciplinary Committee, returns it for re-examination, or closes it when no breach is found. The decision is notified to the member and the complainant within 15 days of the meeting. When the case is closed, the complainant is notified in writing of the reasons and may request, within ten days, a review of the decision by an independent person appointed by the Managing Council who has not taken part in any stage of the examination; a copy of the review report is sent to the complainant.

Cases concerning events that occurred more than three years before the start of the procedure are closed without disciplinary liability, except for breaches found in the Quality Management Review, information concealed or distorted by the member, and breaches that continue to produce effects. An investigation may be reopened when new evidence emerges or when the member has concealed information.

Disciplinary procedure

The Disciplinary Committee acts only after a decision of the Managing Council and does not carry out a new investigation. The Chair of the Committee begins the examination within ten days of the referral and notifies the member of the start of the procedure and of their rights. The member submits evidence, witnesses or a written defence within ten days of the notification and is heard at a hearing, in person or through a representative, together with the representative of the Investigation Committee. The Disciplinary Committee assesses the aggravating and mitigating circumstances, the member’s personal circumstances and the references submitted, applying the Guiding Principles for Determining Disciplinary Measures approved by the Managing Council. The procedure is concluded within 30 days, with the possibility of extension by a reasoned decision, with a proposal either for a measure or for the discontinuation of the proceedings. The Managing Council decides on the approval of the measure, may request its re-examination or additional proceedings, and notifies the member in writing, indicating the avenues of appeal, the body and the deadline.

Where the breach is minor and the parties can reach a conciliatory agreement — correction of errors, an apology, reimbursement — the Disciplinary Committee may propose a settlement to the parties, which is formalised by a decision and approved by the Managing Council.

Disciplinary measures

Disciplinary measures, according to the seriousness of the breach, are:

• counselling, with a recommendation for improvement;
• reprimand: a warning and a recommendation for improvement, without an entry in the IKM register;
• a warning with an entry in the IKM register;
• a fine, proportionate to the level of the breach, with reference to the BMP regulation;
• termination of membership of IKM: temporary suspension for up to five years or permanent removal from the Public Register;
• a proposal by the Managing Council to the BMP for the suspension or withdrawal of the right to practise the profession.

The levels of breach — advisory, minor, moderate, major, significant and critical — are determined under BMP Regulation No. 4 “On investigation and the procedures for taking disciplinary measures”. Where the breach relates to the activity of an Accounting Firm, the responsibility of the Certified Accountant as an individual and the responsibility of the firm are assessed separately. Counselling and reprimand are given when the breach is advisory in nature and the member has made a voluntary declaration or their best efforts; in these cases the costs of the investigation process are borne by the member, according to the estimate approved by the Managing Council.

Where there is a clear and immediate risk to the public interest, the Managing Council, on the proposal of the Investigation Committee, may ask the Disciplinary Committee for an interim measure, such as the temporary suspension of activity, until the final decision. An interim measure is not a disciplinary measure and is revoked as soon as the circumstances that justified it no longer exist.

Rights of the member

At every stage, the member has the right to be notified in good time, to submit explanations or objections in writing, to request a hearing, to be represented by an adviser or legal representative and to request that witnesses be heard. Against the final decision of the Managing Council, the member has the right of appeal through the avenues provided for by the legislation in force and by the IKM Statute; an appeal does not automatically suspend the execution of the decision, unless otherwise provided. No person who was involved in the investigation, the disciplinary examination or the initial decision-making takes part in any later review of the case.

Confidentiality and cooperation with the authorities

The documents and information gathered are treated confidentially and in accordance with personal data protection legislation; they are used only for the purposes of the procedure and are made available only to authorised persons, who sign confidentiality agreements. Case files are kept in electronic format for at least ten years from the final decision. Where facts found during the investigation give rise to a reasonable suspicion of a criminal offence, the Managing Council decides on reporting it to the competent authority. IKM cooperates with the Public Oversight Board, the tax authorities and the authority responsible for the prevention of money laundering, within the limits of the law.

Public reporting

Each year, no later than 30 June of the following year, IKM publishes a summary report on the results of the investigation and disciplinary processes: the number of complaints and of cases opened on its own initiative, the cases closed and those referred for disciplinary proceedings, the number and type of measures imposed, the main categories of breaches, the average handling time and recommendations for preventing breaches. The report contains no data that would allow individuals, firms or clients to be identified. A copy is made available to the Public Oversight Board on request.

For questions about complaints, IKM staff are available to help at info@ikm.org.al or through the Contact page.