The auditing of structural funds : implications for auditors and beneficiaries

Abstract

PURPOSE: The main purpose of this dissertation is to identify the implications that EU funded project audits have on both the beneficiaries that obtain the funding, and the auditors that seek to audit the work. DESIGN: The objectives of this dissertation were achieved through two interview schedules containing semi-structured interview questions with three Maltese audit firms and six Maltese beneficiaries. Secondary research was also conducted in relation to the subject matter. FINDINGS: From the interviews carried out, results indicate that most beneficiaries and auditors present negative feedback in relation to the way procedures are to be carried out to obtain and audit EU funding. Whilst admitting that EU funds are necessary to provide financial help, the bureaucracy involved is considered to be too burdensome, especially for small firms. Yet, once all the findings were laid out, although the implications were also presented in a negative light, beneficiaries concluded that without the funds, most projects cannot be sustained, and thus, after the procedures are met and funds are obtained, the benefits do outweigh the costs. CONCLUSION: Although criticism has already been addressed in relation to the ex-post programming period, there is still room for improvement in relation to making it easier for EU audits to be carried out and EU funds to be obtained. VALUE: Further improvement in the procedures of applying for EU funds would encourage more beneficiaries to seek financial help from the European Union.