The regulator-statutory auditor relationship in the Maltese financial services sector

Abstract

This dissertation investigates the relationship between statutory auditors and the regulator, being the Malta Financial Services Authority (MFSA). The opinions and perceptions of auditors, officers of the regulator and a consultant were obtained through the conduct of semi-structured interviews. The study concludes that auditors provide useful assistance to the regulator, which aids the latter in its oversight of the market, and that, the existence of a regulator benefits the auditor when conducting the annual statutory audit. Consequently, the reports issued by auditors and by the regulator are extremely valuable in the financial services sector. Thus, the co-operation between auditors and the regulator improves both the audit and the regulatory environment. Furthermore, the study concludes that the relationship between auditors and the regulator provides benefits to both the operators and the customers in the financial services sector.