The changing services provided by Maltese audit firms : an analysis

Abstract

Purpose: The objective of this study is to ascertain changes in the services provided by Maltese audit firms (MAFs) over time, the reasons thereto, and to project possible future trends of services provided. Design: In conducting this research, it was essential to use qualitative data techniques, supported by short quantitative analyses. Sixteen semi-structured interviews were held with various MAFs, including small, mid-tier and Big Four firms, allowing the author to make meaningful comparisons between their responses. Findings: This study shows that no major changes were experienced in the assurance service line of MAFs. However, their non-assurance service (NAS) lines were impacted by the increasingly dynamic operating environment faced by clients, business globalisation, taxation becoming increasingly complex, entrepreneurs giving utmost importance to financial information, and increasingly stringent bank requirements. Together with other factors, including EU membership, these resulted in a general trend towards NAS. This tendency is set to continue in the future. Increased pressure in providing a wider range of services will directly impact small firms, due to resource limitations. MAFs’ future strategies are to expand their range of services, thereby accentuating the importance of being one-stop shops. Conclusions: In light of the continuously evolving accountancy landscape, audit firms should make informed choices about their future by taking advantage of new opportunities and choosing the right path for them. Similar to other organisations, they should be proactive, thus making them indispensible to the businesses they serve and enabling them to provide added value to their clients. Value: In the last two decades, much has changed in the operating environment faced by MAFs. This research sheds light on how the Maltese accountancy profession is developing, providing its members an insight into what challenges they would be facing in the future.