Page 61 - Annual Report 2022

i Banka Kombëtare Tregtare Annual Report 2022

INDEPENDENT AUDITOR’S REPORT

To the Shareholders and Board of Directors of Banka Kombetare Tregtare Sh.a

Qualified Opinion
We have audited the consolidated financial statements of Banka Kombetare Tregtare Sh.a (hereafter referred as the “Bank” or the
“Group”), which comprise the consolidated statement of financial position as at 31 December 2022, and the consolidated statement of
profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows
for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies
In our opinion, except for the effects of the matter described in the ‘Basis for Qualified Opinion’ section of our report, the accompanying
consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Bank as at 31 December
2022, its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International
Financial Reporting Standards (IFRSs).

Basis for Qualified Opinion
The Bank has treated its share capital issued in United States Dollar (USD) as a monetary item in the special purpose interim financial
information and recognized the revaluation differences for the year ended 31 December 2022 within net profits in the consolidated
statement of profit or loss and other comprehensive income. This treatment is not in accordance with International Accounting Standard
(IAS) 21 “The Effects of Changes in Foreign Exchange Rates” which requires share capital to be treated as a non-monetary item
and carried at the exchange rate of the date of the transaction. Had the Bank treated its share capital in accordance with IAS 21
requirements, the share capital as at 31 December 2022 would have been increased by USD 15,142,620 retained earnings would have
been decreased by USD 16,496,243 and the net profit would have been increased by USD 1,353,623 for the year ended 31 December
2022. Nevertheless, this would not have affected the total shareholders’ equity.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Albania,
and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRSs,
and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report