The market for newly qualified accountants in Maltese professional firms : an analysis

Abstract

he purpose of this dissertation is to analyse the market for newly qualified accountants in Maltese professional firms. This study examines the prospective supply of new accountancy graduates from the university and ACCA/MIA routes to qualification, and the current and expected future demand for such graduates by audit firms. An assessment of students' perceptions and career-related intentions identifies whether they form part of the supply available to professional firms. The research also highlights the factors influencing the firms' demand. The study was divided into two parts. Findings on the supply of newly qualified accountants were based on a questionnaire distributed to Bachelor of Accountancy (Honours) and ACCA students, as well as secondary data collected from the University of Malta, the Malta Institute of Accountants and the MATSEC Office. Research on demand was conducted by means of interviews with selected audit firm partners, supplemented by a questionnaire directed at all professional firms in Malta. Findings showed that demand for newly qualified accountants has greatly increased and is set to continue, particularly by Big Four firms and medium-sized practices. The primary driver of this demand is the growth of financial services since Malta's accession to the EU. University graduates, who are all immediately absorbed by a few audit firms, are not set to increase in number in the coming years, while the majority of ACCA students are already employed in industry. This has led to the conclusion that firms will be facing a shortage of newly qualified accountants in the forthcoming years in view of the increasing demand.