The regulatory audit of selected major Maltese sports clubs : an assessment

Abstract

Purpose: This dissertation assesses the need for a regulatory club audit. The key research objectives of this study include an analysis of whether club committees, auditors and members are satisfied with the current examination or non examination of the clubs' financial records; the perceptions of the same parties with regard to the needs, benefits and costs of a club audit; and whether club committees, members and auditors favour the formation of a regulatory body. Design: A combination of personal interviews and a questionnaire were used in this study. The questionnaire was distributed to 120 members attending clubs which carry an audit (Group A) and 80 members attending clubs which do not carry an audit (Group B), yielding responses from 42 Group A (35% response rate) and 27 Group B members (34% response rate). Interviews were conducted with seven treasurers and five auditors. Findings: This study reveals that lack of regulatory requirements give way to different club audit approaches. It is also found that some clubs do not even carry out a financial statements' verification. Treasurers mentioned several needs and benefits of a club audit and the disadvantages provided were too few when compared with the needs and benefits. Although auditors mentioned similar advantages, they were sceptical about forming a regulatory body. On the contrary treasurers admitted that a regulatory body would be of help. Club members were indifferent in their responses. Value: This study recommends the setting up of an autonomous regulatory body to regulate the club audit. Clubs should be stream-lined in line with predefined characteristics and accordingly carry out a full scope audit, a review or a compilation.