The application in Malta of the standards for the professional practice of internal auditing

Abstract

This dissertation explores, with respect to selected Maltese Internal Audit Departments: • The extent to which internal auditing standards are necessary; • The extent to which the Standards for the Professional Practice of Internal Auditing are being applied; and • The extent to which the changes proposed to the Standards will help in their future application. The research extended over a period of seven months and involved mainly the use of personal interviews with eleven Maltese internal auditors out of eighteen entities known to have an IAD. Internal auditors agreed to the need of having internal auditing standards that are widely applicable with more specific guidelines provided either at an industry or at a national level. In general, internal auditors seemed to agree that standards enhance the degree of professionalism in internal auditing. The majority of the internal auditors referred, to a greater or lesser extent, to the Standards when conducting internal audit activities. The extent of their application seemed to be influenced by various factors. Moreover, their application was only voluntary, since there was no statutory requirement. The Standards were referred to mainly because of their international applicability. Revising the Standards to adapt them to the new definition of internal auditing, and the introduction of Implementation Standards were deemed to be amongst the most helpful changes in enhancing the future application of the Standards. The reaction of internal auditors towards these changes was varied with some claiming that they will still apply the Standards where relevant, and others expressing more willingness to improve their professionalism by applying the Standards. Overall, a more intense effort and commitment are required towards the application of the Standards in their totality if internal auditing is to continue developing as a profession in Malta.