A professional research unit in Maltese accountancy : a study

Abstract

PURPOSE: The objectives of this study are: i) to assess whether the major players within the profession accept or otherwise the concept of a Maltese PRU and lay out its pros and cons ii) to determine how such a Unit may be effectively governed, structured, and financed and also iii) to propose the areas of research focus of such a Unit. DESIGN: In order to achieve such objectives, a mixed-method approach was adopted. Nineteen SSIs and seven OQs were carried out with twenty-six participants, the latter being twenty-three representatives of different AAFs and one representative of the AB, the DoA and the MIA respectively. FINDINGS: Findings indicate that, amongst Maltese professionals, there seem to be a strong inclination towards acquiring the research outcomes of this Unit if set up. Emphasis was made for such a Unit to be established as an independent body with a governance structure similar to that present in AngloSaxon/American PRUs. Moreover, the indications are that the effectiveness of its Board of Directors would be dependent on the frequency of its meetings and the presence of remunerated as well as periodically rotated prestigious members with diverse skills and expertise. However, a moot point remains that of whether such members would be directly appointed or elected. There also appear to be a general agreement that at least some researchers would need to be employed on a full-time basis with adequate remuneration. However, the notion of researcher salary benchmarking was found controversial. Moreover, Unit funding would potentially be sourced by public authorities, paid members, private engagements and the organisation of events. Responses also indicated that this Unit would ideally adopt a broad research focus and that further interlinks between PAR and AAR would need to be established. Yet, the idea of incorporating AAR within such a Unit remained controversial. CONCLUSIONS: The study concludes that this concept is highly acceptable to the major players in the profession. Moreover, such a Unit would need to be governed by a Board of Directors supported by Finance, Research and Administration teams, all vested with specific roles. The Unit’s research focus would best extend over all areas of the profession while prioritising its efforts on issues which are at the time of concern to most practitioners. IMPLICATIONS: This study hopefully derives useful insights relating to the eventual development of such a Unit. The recommendations put forward are meant to enable such a Unit to operate with efficiency and effectiveness in the interest of the profession.