Procedures of Maltese accounting firms with regards to whistleblowing : a study

Abstract

PURPOSE: This study aims to evaluate the internal whistleblowing policy and procedures implemented by Maltese Accounting firms. Moreover, it aims to identify differences between the whistleblowing policy implemented by Big 4 Firms and Small & Medium Maltese Accounting firms. Whilst, determining the effectiveness of such policies. DESIGN: To reach the objectives of this study a single-method approach was used, where a qualitative approach was adopted. In total ten (10) semi-structured interviews with Big 4 firms and Small and Medium Accounting firms were held, with the Whistleblowing Reporting Officer or an individual within the Human Resources department or another officer of the accounting firm. FINDINGS: From the data gathered, it is clear that the transposition of the EU Directive 2019/1937 had a great impact on Maltese Accounting firms and the introduction of a formal whistleblowing policy. It also became evident that accounting firms use similar reporting channels and that the investigation process of whistleblowing cases differs on a case-by-case basis. Moreover, it could be clearly observed that there are some areas in the whistleblowing policy where no significant differences between Big 4 Firms and Small & Medium Maltese Accounting firms were detectible but then there are other areas where a difference is noticeable. However, overall all firms deem the policy to be effective and would recommend the implementation of the policy. CONCLUSIONS: It can be concluded that the effectiveness of the whistleblowing policy can be enhanced through formal training programmes for the WRO, higher level of enforcement, amendment in the Act to provide better protection to whistleblowers and greater awareness relating to the anti-retaliation policy. VALUE: The accounting profession accepts responsibility for the public at large, thus the reporting of any misconduct helps to secure the reputation of the profession and the trust the public has in the profession. Hence, this study aims to provide useful insight to Accounting firms and will generate new knowledge about the Maltese Accounting industry with regards to whistleblowing.