Assurance services beyond the statutory audit in Malta : a study

Abstract

PURPOSE: The purpose of this study is to assess the level of awareness amongst practitioners and availability of other assurance services in Malta, their level of demand and how an audit exemption might alter it. DESIGN: The core research method was an online questionnaire distributed to accountants registered with the MIA. To support the findings from said questionnaire, semi-structured interviews were held. FINDINGS: It became apparent from this study that Maltese practitioners’ awareness and knowledge of other assurance services is of an average level and needs improving. It also transpired that Maltese firms are offering a number of other assurance services but the requests for them are rather infrequent. As things stand, this might not be much of an issue since the demand for such services is rather low. Should the EU fourth directive come into play, however, and qualifying small companies are exempted from the audit, practitioners are not fully equipped to offer certain assurance services that could replace the audit. CONCLUSIONS: In conclusion, knowledge and availability of other assurance services in Malta are of a mid-tier level but this might need to change if the audit exemption is adopted as most practitioners think the demand for the audit will fall whilst some believe the demand for other assurance services might rise. IMPLICATIONS/VALUE: This study indicates that there is lack of awareness of other assurance services and should the audit exemption be adopted, the relevant bodies must take the necessary actions to prepare both practitioners and Maltese companies for the change.