Internal job rotation within two major audit firms in Malta : an analysis

Abstract

Purpose: This study attempts to ascertain the extent to which Internal Job Rotation (IJR) is applied within two major audit firms in Malta. It also aims to assess the benefits and drawbacks of this technique from the perspective of the audit firms themselves and also that of the employees. Finally, this study seeks to assess, how such IJR may be improved in the interest of both parties. Design: Primary data, to achieve the objectives of this study, was obtained through a questionnaire sent to both audit firms and also through four face-to-face interviews held with both firms to support the data obtained through the questionnaires. Findings: The study established that there is a lack of IJR within these two major audit firms in Malta. One of the main advantages is that employees acquire new skills and increase their knowledge which in turn is beneficial for the firm, as clients are given better services. However the main disadvantage is the cost and time involved in training such employees. One of the most important improvements management can make, would be to make mandatory IJR policy for interns joining the firm for the summer periods. Conclusion: This study concludes that IJR is not very common amongst accountants within these two major audit firms and is not set to increase a lot in the future. Nonetheless, this does not negate the fact that it is very beneficial for both the employees and the audit firm as a whole. Above all, management should encourage a culture of learning to boost the employees’ skills in order to acquire the utmost of these experiences. Value: This study sheds light on various benefits and drawbacks of IJR and assesses its application within these two major audit firms. Given that there is lack of research on this subject, this study is mostly beneficial to new graduates, Certified Public Accountants (CPAs) and audit firms to improve on the current IJR situation and allow it to be executed better.