The internal audit function at Air Malta P.L.C.

Abstract

Air Malta P.L.C. is the Maltese National Airline established with the primary aim to operate air transport services to and from Malta, which, by the carriage of passengers, freight and mail, serve the national interest. The size of the organization makes it impossible for top management to exercise direct supervision. An increasingly widening gap is thus created between administration and front line operations. As contact between management and employees becomes more remote, the use of new aids to achieve control becomes increasingly important. Management must have assurances that the policies and regulations that have been laid down are put into operation in the way intended. The internal audit function is therefore used to bridge this gap by serving as an independent check on the accounting and other operations of the organization. The objectives of this dissertation are to set down, examine and evaluate the present state and functions of the internal audit department at Air Malta and to assess the importance attached to the internal audit function by management. The research methodology adopted in this study consisted of a preliminary investigation, semi-structured interviews with the internal auditor and management of Air Malta and an in-depth interview with the internal auditor of the Central Bank of Malta. The challenges of today's changing world introduce great opportunities for management and point to the necessity of a strong internal audit function. Especially in these times of constant change, internal auditing is critical to efficient operations, effective internal controls, strong corporate governance, and in some cases, the very survival of the organization. This study recommended steps to be taken in order to improve the effectiveness of the internal auditing function at Air Malta.