Conflict of interest regulations in Maltese accountancy : an evaluation

Abstract

The purpose of this study is to ascertain and assess the regulations on conflict of interest encountered by Maltese auditors and accountants in their COE and to establish how these are perceived by the profession. It also aims at identifying and evaluating the current policies adopted by companies and professional firms on conflict of interest. The objective of the study was achieved through a series of semi-structured interviews with 7 auditors from Big 4 Firms and 7 accountants from PLCs. This study ascertains that the accountancy profession needs more guidance with respect to conflict of interest but they need not be too restrictive. The lack of familiarity with the regulations in the Code indicates that these are not widely adopted. However entities have their own policies which they strictly adhere to. This study will encourage revision of Conflict of Interest regulations and were possible these will be developed further to be more useful to professionals.