Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/5251
Title: The management of risks in the statutory audit of Maltese commercial banks
Authors: Azzopardi, Joseph
Keywords: Banks and banking -- Malta
Bank examination -- Malta
Risk management -- Malta
Issue Date: 2012
Abstract: Purpose: This study seeks to understand what risks auditors consider to be the most pertinent during statutory bank audits. Moreover, it attempts to determine what procedures are being utilised by bank auditors in managing those risks. In light of developments in the international financial services industry, recent bank failures and consequent litigation against the auditors, the effectiveness of such procedures also warrants attention. Design: Semi-structured interviews were conducted to gather the necessary information for this study. The findings were then analysed and discussed with reference to literature on the subject. Findings: The most significant risks during bank audits are audit, reputational, litigation and regulatory risks. The procedures used for the management of audit risk are not unlike those used during audits of other organisations. However these are then supplemented and amplified to account for the heightened risks that a bank audit carries. Conclusions: Local bank auditors are well aware of the risks implicit in a bank audit and are modifying their methodologies to properly account for these risks during all stages of the audit process. Generally, these alterations are deemed to be appropriate and sufficient in abating risks, especially audit and litigation risks. Value: This study permits local auditors to discover, from one another, the best ways to effectively manage risks. Furthermore, it uncovers a number of flaws in the risk management tools used by local bank auditors and thus recommendations are made to help improve the effectiveness of bank audits and in turn reduce the possibility of litigation against the auditors. Thirdly, regulators can gain an insight on a number of matters; for instance, knowing what risks are considered the mos other stakeholders involved.
Description: B.ACCTY.(HONS)
URI: https://www.um.edu.mt/library/oar//handle/123456789/5251
Appears in Collections:Dissertations - FacEma - 2012
Dissertations - FacEMAAcc - 2012

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