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Title: Reviewing the statutory audit for owner-managed companies in Malta
Authors: Pace, Dylan
Keywords: Business enterprises -- Malta
Auditing -- Malta
Financial statements -- Malta
Banks and banking -- Malta
Issue Date: 2019
Citation: Pace, D. (2019). Reviewing the statutory audit for owner-managed companies in Malta (Master’s dissertation).
Abstract: PURPOSE: This study analysed the perceptions of different stakeholders on the current statutory audit requirement imposed on owner-managed companies. Moreover, the stakeholders’ views on introducing an audit exemption for ownermanaged companies were examined. Lastly, the study focused on the possible alternatives of an audit which would be ideal for Maltese owner-managed companies. DESIGN: A qualitative approach was adopted in order to achieve the objectives of the study. Four interview schedules were prepared according to the perceived level of financial knowledge of the stakeholder. The schedules were used to conduct a total of eighteen semi-structured interviews with owner-managers, banks, Inland Revenue Department, big four and non-big four auditors in Malta. FINDINGS: The stakeholders made use of the audit to different levels. However, it was confirmed that the audit played an important role in obtaining credit. In addition, owner-managed companies did not make use of the audit report and they considered the audit as being a financial and administrative burden. Having said that, owner-managers’ opinions differed according to their own personal aspirations as to how much they wish to expand their business. Stakeholders opined that an audit exemption may not be the solution for owner-managers as this may instigate fraud and manipulation. Stakeholders were open to change from the current statutory requirements, provided that an adequate alternative was found which meets the needs of all parties. CONCLUSIONS: The statutory audit provides little to no value to ownermanaged companies and hence an alternative should be introduced. A review engagement or the introduction of Blockchain Technology within companies would prove to be beneficial for all parties involved. VALUE: This study raised awareness on the current views of stakeholders on the audit of owner-managed companies with the objective being of identifying the value that stakeholders derived from the audit.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2019
Dissertations - FacEMAAcc - 2019

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