The audit expectations gap in the Maltese public sector : an assessment

Abstract

Purpose: The objective of this study is to determine whether there is an audit expectations gap in the Maltese Public Sector. The study explores the perceptions of the NAO auditors, the PAC members, the Parliament, the Government departments and the MFEI. The last four groups mentioned are the recipients of the NAO audit reports. Nine audit concepts were studied namely, auditor independence, competence, ethics, materiality, audit evidence, truth and fairness, audit roles, reporting and auditing standards. Design: The research instruments used in this dissertation were semi-structured interviews, Likert scale questionnaires and an observation study. These were addressed to both the NAO auditors and users of the audit reports. Findings: The findings indicate that an audit expectations gap exists in the Maltese public sector between the NAO auditors and the users. It exists in key audit areas namely, auditor independence, audit evidence, truth and fairness, auditor roles and reporting and audit standards. Conclusions: The results show that the NAO have a high standard in the conduct of the audit, however, one cannot eliminate the fact that an audit expectations gap exists.