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Title: Adoption of key audit matters in Maltese listed companies : a detailed first year analysis
Authors: Sammut, Karl
Keywords: Auditing -- Malta
Auditing -- Standards -- Malta
Corporations -- Malta -- Auditing
Issue Date: 2018
Citation: Sammut, K. (2018). Adoption of key audit matters in Maltese listed companies : a detailed first year analysis (Master’s dissertation).
Abstract: Purpose: The main objective of this study is to carry out an impact assessment of the introduction of ISA 701 and Key Audit Matters on the audits of Maltese listed companies, with specific reference to the viewpoints of auditors and financial controllers respectively. The study established common themes between such parties, examined the value added of Key Audit Matters, and a comparison was made with an international benchmark on Key Audit Matters. Design: The study begins with an examination of existing foreign literature on the subject matter. This dissertation assessed the views of local audit firms responsible for the audits of Maltese listed entities, in conjunction with the financial controllers of such companies. This was done through the use of semi-structured interviews. The Big Four audit firms and five listed entities chosen for the purpose of the study have their equity listed on the Malta Stock Exchange. Findings: Results indicate that the introduction of KAMs adds credibility and informational value to the AR. The auditor’s role has been clarified, with the information and expectation gap being minimised significantly through the revised AR and KAMs. The wording used to describe KAMs is essential for the understanding of users, and boilerplate wording is avoided to retain the informational value of such KAMs. Moreover, the findings conclude that the majority of the work related to the KAMs was previously being done, however the level of documentation has increased. Findings also indicate that the concepts of Emphasis of Matter and Other Matter paragraphs should be retained, even though users may not be knowledgeable enough to distinguish between them. Conclusions: This study has contributed significantly to existing literature, in addition to providing essential findings for the Maltese auditing profession. In light of the additional demand of information from users, it can be said that the revised AR and the introduction of KAMs has enhanced communicative value which users will benefit from. Value: This study is original since it is the first to investigate the impact of Key Audit Matters on Maltese listed entities.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2018
Dissertations - FacEMAAcc - 2018

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