The enhancement of the office of the auditor general under Maltese law

Abstract

The audit of the public sector expenditure is assuming more importance in modern economy. The importance of the audit of public finances has long been recognised in Malta. In fact, this is reflected in the Constitution of Malta. The Auditor General is empowered to examine and report upon the expenditure of public sector entities, to point out any misuse of funds and put forward recommendations. The aim of the term paper goes beyond merely listing systematically the functions of the Office of the Auditor General as regulated by Maltese statutory law. The term paper intends to fill a lacuna in the literature on public finance, more importantly on the expenditure side, in that it will critically analyse the provisions constituting the Office of the Auditor General of Malta with a view to identify limitations and propose suggestions to enhance it. Particular attention will be given to the independence of the Auditor General and his powers of, or rather lack of, enforcing his investigations in a Court of Law. The term paper will question whether the present set up of the Maltese legislative framework has room for improvement in connection with the Auditor General. Other jurisdictions which endorse a different model of auditing will be looked at. In particular, the Court Model of Auditing, adopted by many European Union member states such as France, Portugal and Spain, appears better equipped to reduce these limitations and therefore fulfil a much more efficient and effective public fund auditing exercise. The term paper will question whether the Court model gives the audit institution enhanced independence and effectiveness.