The objectives in Maltese internal audit : an evaluation

Abstract

Purpose: The purpose of this study is to analyse the objectives of Maltese Internal Audits. The study further endeavours to understand the importance of having recognised objectives within IAF. The internal auditor’s contribution towards the achievement of organisational goals and the applicability of performance measures within the sphere of internal auditing is another aspect which this study intends to identify. Design: These objectives were fulfilled by conducting 16 semi- structured interviews: 12 with Maltese companies having an in-house internal audit function, and 4 with audit firms that provide internal audit services to Maltese companies. Findings: This study ascertains that Maltese internal audits have evolved throughout the years, bringing about developments in objectives of internal audit, which are nowadays well recognised throughout organizational structures, priority given based on time, financial and skill limitations. Internal auditors contribute to the achievement of corporate goals as they are seen as business partners rather than the traditional policing cliché. Furthermore while, Maltese companies acknowledge the significance of performance measures to ensure the achievement of IA objectives, this study reveals that they are not formally widely adopted. Conclusion: IA objectives became more vested in providing not only assurance, but also consultations and recommendations to management. This study concludes that having recognised IA objectives ensures the effectiveness of the IAF. The relationship between IAF and management is critical if the internal auditor is to contribute to the achievement of corporate goals. Value: It is hoped that the study provides insight into the objectives of internal auditing within the local scenario. Furthermore, by highlighting possible areas for improvement within the field, internal auditing is given a greater appreciation, especially with regards to the added value it provides to the organisation.