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Title: The use and evolution of bank external audit confirmations by Maltese auditors
Authors: Petrova, Silvana Deyanova
Keywords: Auditing -- Malta
Banks and banking -- Malta
Issue Date: 2018
Citation: Petrova, S. D. (2018). The use and evolution of bank external audit confirmations by Maltese auditors (Master’s dissertation).
Abstract: PURPOSE: This study analyses how the process of external audit confirmations can be improved upon, by collecting feedback from both auditors and banks. It delved into the process from both the auditor’s and the bank’s side, to discover possible improvements within the process and use of the letter. DESIGN: Series of semi-structured interviews with audit firms and sole practitioners were carried out to meet the research objectives of the study. The perspectives of an internal auditor and banks were also observed. These were later transcribed and a thematic analysis was utilised in the analysis of the data. FINDINGS: Bank letters provide the auditor with substantial information; however weaknesses put its reliability in question. Auditors are relying on the bank statement to complement the letter, due to timeliness and mismatches; some overlook foreign bank letters altogether. Completeness is another issue of concern, where auditors need to trust that the client is providing them with a complete list of the company’s bank accounts. Suggestions for improvement were put forward by participants and the researcher, one of them being the implementation of electronic medium confirmations, also supported by banks. CONCLUSION: The need of improving the process is evident and supported by auditors and the bank. Electronic confirmations were seen as the best possible improvement to deal with the issues encountered by the process. An increased importance of assessing the reliability of the confirming party, the completeness assertion, foreign letters, reducing manual override from banks’ side is suggested. VALUE: This study can assist in the development of the bank confirmation process and demonstrate auditors’ receptiveness to the adoption of electronic bank confirmations locally. Additionally, some recommendations were put forward as to what further could be done in order to improve the process locally.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2018
Dissertations - FacEMAAcc - 2018

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