Shaping the accountancy profession in Malta : perceptions and professional impact

Abstract

Purpose: The primary purpose of this study is to deepen the understanding of Malta’s regulatory and recognised bodies within the accountancy profession and to explore the perceptions of accounting professionals regarding their performance. Through the evaluation of these bodies’ overall effectiveness, the study seeks to identify areas for improvement, contributing to the enhancement of Malta’s regulatory framework. Design: The study’s objectives were met through an extensive review of global and local literature, complemented by twenty semi-structured interviews with representatives from regulatory and recognised bodies, Big-Four and mid-tier firms, listed entities, and sole practitioners. A thematic analysis of the qualitative responses to open-ended questions provided a thorough and nuanced evaluation of the findings. Findings:The findings reveal that Malta’s accountancy regulatory and recognised bodies share a commitment to safeguarding the public interest but face challenges due to resource constraints and rigid frameworks, affecting efficiency and inclusivity, particularly for smaller practitioners. The Accountancy Board is criticised for inflexibility and limited engagement, the Malta Financial Services Authority shows adaptability but struggles with inclusion, and the Malta Institute of Accountants, while praised for outreach and adaptability, lacks enforcement authority. Conclusion: The study concludes that the evolving role of accountants demands regulatory and recognised bodies to adapt their support mechanisms, ensuring professionals are equipped to deliver high-quality services while navigating regulatory challenges, particularly for smaller practitioners. Prioritising resource expansion is essential to strengthening regulatory independence and reduce reliance on larger firms. Additionally, greater accountability and stricter disciplinary measures are imperative to uphold the profession’s integrity and reinforce its credibility and professionalism. Value: The study contributes to the local literature on Malta’s accountancy regulatory and recognised bodies while identifying key areas for improvement within the profession. The study gathers valuable perspectives from professionals across entities of varying sizes, offering a comprehensive perspective on the challenges and opportunities within the regulatory framework.