Non-Audit Assurance Services in Albania: A Logistic Regression Analysis of the Supply-Side Factors
Abstract
This research examines the provision of non- audit assurance service provision in Albania through a study covering two time periods: 2010–2012 and 2022–2024. This two-period design captures changes in market development and professional practice over time. It allows for a comparison of the factors influencing non-audit assurance service provision at an early stage and at a more mature stage of the Albanian assurance market. Using survey data from certified auditors and applying principal component analysis (PCA) followed by binary logistic regression, the study investigates how professional knowledge, fees, ethical qualities, and employment category influence the likelihood of offering assurance services. Results indicate that specific knowledge of assurance services consistently emerges as the strongest factor, with its effect remaining significant across both periods, although diminishing over time. General professional skills, statistically significant in 2010–2012, lost influence in 2022–2024, while the professional category, service fees, and ethical qualities remained statistically insignificant. These findings suggest that the Albanian assurance market is still developing, with technical expertise serving as the key determinant of service provision. The article concludes with implications for policymakers, professional organisations, and universities in preparing for a changing, more competitive assurance landscape.
References
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O’Dwyer, B., & Owen, D. L. (2005). Assurance statement practice in environmental, social and sustainability reporting: A critical evaluation. The British Accounting Review, 37(2), 205–229. https://doi.org/10.1016/j.bar.2005.01.005
Quick, R., & Inwinkl, P. (2020). Assurance on CSR reports: Impact on the credibility perceptions of non-financial information by bank directors. Meditari Accountancy Research, 28(5), 833–862. https://doi.org/10.1108/MEDAR-10-2019-0597
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Simnett, R., Vanstraelen, A., & Chua, W. F. (2009). Assurance on sustainability reports: An international comparison. The Accounting Review, 84(3), 937–967. https://doi.org/10.2308/accr.2009.84.3.937
Singh, H., & Waller, K. (2024). Training in small- and medium-sized practices: Driving quality and unlocking opportunities. International Federation of Accountants. https://www.ifac.org/knowledge-gateway/discussion/training-small-and-medium-sized-practices-driving-quality-and-unlocking-opportunities
Sucher, P., & Bychkova, S. (2001). Auditor independence in economies in transition: A study of Russia. European Accounting Review, 10(4), 817–841. https://doi.org/10.1080/09638180120069142
Sucher, P., & Zelenka, I. (1998). The development of the role of the audit in the Czech Republic. European Accounting Review, 7(4), 723–751. https://doi.org/10.1080/09638189833621
Vander Bauwhede, H., & Van Cauwenberge, P. (2022). Determinants and value relevance of voluntary assurance of sustainability reports in a mandatory reporting context: Evidence from Europe. Sustainability, 14(15), 9795. https://doi.org/10.3390/su14159795
Zherri, F., & Kalemi, F. (2025). Environmental accounting in Albania: Current public disclosure and the reality behind closed doors. European Scientific Journal, 21(16), 53. https://doi.org/10.19044/esj.2025.v21n16p53
Al Frijat, Y. S., & Al-Hajaia, E. M. (2025). Auditor’s technical, digital, and creativity skills and their role in supporting audit outcomes in light of digital transformation strategy. Corporate Board: Role, Duties and Composition, 21(1), 60–70. https://doi.org/10.22495/cbv21i1art6
Albu, C. N., Albu, N., Faff, R., & Hodgson, A. (2011). Accounting competencies and the changing role of accountants in emerging economies: The case of Romania. Accounting in Europe, 8(2), 155–184. https://doi.org/10.1080/17449480.2011.621395
Alsahali, K., Malagueño, R., & Marques, A. (2024). Board attributes and companies’ choice of sustainability assurance providers. Accounting and Business Research, 54(4), 392–422. https://doi.org/10.1080/00014788.2023.2181141
Bryant, F. B., & Yarnold, P. R. (1995). Principal-components analysis and exploratory and confirmatory factor analysis. In L. G. Grimm & P. R. Yarnold (Eds.), Reading and understanding multivariate statistics (pp. 99–136). American Psychological Association. https://psycnet.apa.org/record/1995-97110-004
Carcello, J. V., Hermanson, R. H., & McGrath, N. T. (1992). Audit quality attributes: The perceptions of audit partners, preparers, and financial statement users. Auditing: A Journal of Practice & Theory, 11(1), 1–15. https://www.semanticscholar.org/paper/Audit-Quality-Attributes%3A-The-Perceptions-of-and-Carcello-Hermanson/936faff84dfdb95a63c3f279353b2f6fd10918c4
Cohen, J. R., & Simnett, R. (2015). CSR and assurance services: A research agenda. Auditing: A Journal of Practice & Theory, 34(1), 59–74. https://doi.org/10.2308/ajpt-50876
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
Eilifsen, A., Knechel, W. R., Wallage, P., & Praag, B. (2006). Assurance and reporting on internal control. International Journal of Auditing, 10(3), 219–237. https://doi.org/10.1111/j.1099-1123.2006.00350.x
European Commission. (2023). Commission Delegated Directive (EU) 2023/2775 amending Directive 2013/34/EU as regards the adjustments of the size criteria for micro, small, medium-sized and large undertakings or groups. https://eur-lex.europa.eu/eli/dir_del/2023/2775/oj/eng
Francis, J. R. (2011). A framework for understanding and researching audit quality. Auditing: A Journal of Practice & Theory, 30(2), 125–152. https://doi.org/10.2308/ajpt-50006
Gjika, L. (2015). The development of assurance services: The case of Albania [Doctoral dissertation, University of Tirana]. https://unitir.edu.al/wp-content/uploads/2015/01/Doktoratura-Lindita-Gjika-Fakulteti-i-Ekonomise-Departamenti-i-Kontabilitetit.pdf
Grommes, A. (2025). Impact of audit assurance on the quality of sustainability reporting. Junior Management Science, 10(1), 201–235. https://doi.org/10.5282/jums/v10i1pp201-235
Hasan, M., Maijoor, S. J., Mock, T. J., Roebuck, P. J., Simnett, R., & Vanstraelen, A. (2005). The different types of assurance services and levels of assurance provided. International Journal of Auditing, 9(2), 91–102. https://doi.org/10.1111/j.1099-1123.2005.00262.x
Hazaea, S. A., Zhu, J., Khatib, S. F. A., Bazhair, A. H., & Elamer, A. A. (2022). Sustainability assurance practices: A systematic review and future research agenda. Environmental Science and Pollution Research, 29(4), 4843–4864. https://doi.org/10.1007/s11356-021-17359-9
International Auditing and Assurance Standards Board. (2013). ISAE 3000 (Revised): Assurance engagements other than audits or reviews of historical financial information. International Federation of Accountants. https://www.ifac.org/system/files/publications/files/ISAE%203000%20Revised%20-%20for%20IAASB.pdf
International Auditing and Assurance Standards Board. (2024). International Standard on Sustainability Assurance (ISSA) 5000: General requirements for sustainability assurance engagements. https://www.iaasb.org/publications/international-standard-sustainability-assurance-5000-general-requirements-sustainability-assurance
International Ethics Standards Board for Accountants. (2025). International ethics standards for sustainability assurance (including international independence standards). https://www.ethicsboard.org/publications/final-pronouncement-international-ethics-standards-sustainability-assurance-including-international
International Federation of Accountants, American Institute of Certified Public Accountants, & Chartered Institute of Management Accountants. (2025). More global companies seek assurance on sustainability reporting, study by IFAC, AICPA & CIMA shows. https://www.ifac.org/news-events/2025-05/more-global-companies-seek-assurance-sustainability-reporting-study-ifac-aicpa-cima-shows
King, N., Beattie, V., Cristescu, A.-M., & Weetman, P. (2001). Developing accounting and audit in a transition economy: The Romanian experience. European Accounting Review, 10(1), 149–171. https://doi.org/10.1080/09638180120041797
Kılıç, M., Kuzey, C., & Uyar, A. (2021). An international investigation on assurance of integrated reports: Institutions, assurance quality, and assurers. Journal of International Accounting, Auditing and Taxation, 42, 100360. https://doi.org/10.1016/j.intaccaudtax.2020.100360
Lind, D. A., Marchal, W. G., & Wathen, S. A. (2002). Statistical techniques in business and economics (11th ed.). McGraw-Hill/Irwin. https://books.google.com/books/about/Statistical_Techniques_in_Business_and_E.html?id=5b9rLvKhkLUC
Muceku, H., & Bello, K. (2021). Functioning of public internal audit in Albania: Managerial awareness and value recognition. WSEAS Press. https://www.wseas.com/journals/bae/2021/c025107-1358.pdf
O’Dwyer, B., & Owen, D. L. (2005). Assurance statement practice in environmental, social and sustainability reporting: A critical evaluation. The British Accounting Review, 37(2), 205–229. https://doi.org/10.1016/j.bar.2005.01.005
Quick, R., & Inwinkl, P. (2020). Assurance on CSR reports: Impact on the credibility perceptions of non-financial information by bank directors. Meditari Accountancy Research, 28(5), 833–862. https://doi.org/10.1108/MEDAR-10-2019-0597
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press. https://www.amazon.com/dp/0743222091
Simnett, R., Vanstraelen, A., & Chua, W. F. (2009). Assurance on sustainability reports: An international comparison. The Accounting Review, 84(3), 937–967. https://doi.org/10.2308/accr.2009.84.3.937
Singh, H., & Waller, K. (2024). Training in small- and medium-sized practices: Driving quality and unlocking opportunities. International Federation of Accountants. https://www.ifac.org/knowledge-gateway/discussion/training-small-and-medium-sized-practices-driving-quality-and-unlocking-opportunities
Sucher, P., & Bychkova, S. (2001). Auditor independence in economies in transition: A study of Russia. European Accounting Review, 10(4), 817–841. https://doi.org/10.1080/09638180120069142
Sucher, P., & Zelenka, I. (1998). The development of the role of the audit in the Czech Republic. European Accounting Review, 7(4), 723–751. https://doi.org/10.1080/09638189833621
Vander Bauwhede, H., & Van Cauwenberge, P. (2022). Determinants and value relevance of voluntary assurance of sustainability reports in a mandatory reporting context: Evidence from Europe. Sustainability, 14(15), 9795. https://doi.org/10.3390/su14159795
Zherri, F., & Kalemi, F. (2025). Environmental accounting in Albania: Current public disclosure and the reality behind closed doors. European Scientific Journal, 21(16), 53. https://doi.org/10.19044/esj.2025.v21n16p53
Published
2026-09-30
How to Cite
GJIKA, Lindita; TOMORI, Elena Myftaraj.
Non-Audit Assurance Services in Albania: A Logistic Regression Analysis of the Supply-Side Factors.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 17, n. 3, p. 677 - 688, sep. 2026.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/9659>. Date accessed: 03 oct. 2026.
doi: https://doi.org/10.14505/tpref.v17.3(39).04.
Section
Articles
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