The policing of fraud and the role of Maltese auditors : an investigation

Abstract

The primary aim of this dissertation is to identify and evaluate whether and to what extent forensic specialists need to be introduced within the Economic Crime Unit, in order to appropriately account for, detect and prevent fraud. Design: This study was conducted through a number of semi-structured interviews with the Economic Crime Unit, two district officers, the Big Four Audit firms, one medium-sized audit firm, one banking expert and a private investigative expert. Secondary research was also conducted in relation to the subject matter. Findings: Results indicate that all audit respondents have appropriate structures, policies and procedures set up to ensure that fraud is properly accounted for. Only one of the local interviewed institutions provides forensic services, whilst the residual offer these services only as special assignments. Results exhibit police-auditor collaboration as an infrequent occurrence where third parties are only recruited within an investigation through a magisterial enquiry and the majority of times owing to additional evidence required by the ECU or upon a client's request. Financial resources appear to have increased since Malta's entry into the European Union, although not parallel to the Economic Crime Unit's requirements, whilst manpower and other in-house knowledge seem to have remained unchanged. The idea of organising forensic curriculums, predominantly targeting IT Forensics, and the establishment of one coordinating body connecting all the different law enforcement institutions enticed the majority of respondents. Conclusions: As law enforcement authorities and the audit profession move towards a new era of responsibility, forensic auditing can act as a powerful prospective ally. However for the local nation to reap the full benefits this profession has to offer, its awareness has yet to be enhanced. Value: In light of the recent financial scandals this study discloses welfare possibilities that the accountancy profession can offer for police fraud investigations.