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Title: Enhancing the audit report : an impact assessment on Maltese audit firms
Authors: Vassallo, Janika
Keywords: Auditor's reports -- Malta
Auditing -- Malta
Risk management
Issue Date: 2015
Abstract: Purpose: The main objective of this study is to carry out an impact assessment on the enhanced audit report on the audits of Maltese listed entities, with specific reference to the new and revised standards on Auditor Reporting. The study examined the potential impact on overall audit plan and strategy, audit costs and reactions from those charged with governance or management, as perceived by local audit firms. The study focused on the introduction of key audit matters and on the disclosure enhancements relating to going concern and independence. Design: The study begins with an overview of existing foreign and local literature on the subject matter. This dissertation examined the view of local audit firms, involved in the audits of listed companies in Malta, through the use of semi-structured interviews. The Big 4 audit firms and two other mediumsized audit firms responsible for audits of companies having their equity listed on the Malta Stock Exchange participated in this study. Findings: The auditor’s role is a societal one where it provides credibility on the financial statements. The audit report represents the auditor’s work, but offers little communicative value since it delivers little entity-specific information. The new and revised standards on Auditor Reporting should not have a significant impact on the audit procedures performed, however will result in increased focus on audit reporting. This will lead to additional time costs due to various internal and external discussions. More time will be involved in internal consultations with methodology, risk management and engagement partners. The amendments will also lead to management and those charged with governance to be more interested in the auditor reporting stage. Conclusions: The long-standing audit report is going through one of the most fundamental changes in decades. The new and revised standards on Auditor Reporting aim to achieve an appropriate balance (i.e. combining standard wording with non-standard entity specific information) to provide more useful information to users of financial statements. Value: This study is original since it is the first to investigate the impact of the new and revised standards on Auditor Reporting on Maltese audit firms.
Description: M.ACCTY.
Appears in Collections:Dissertations - FacEma - 2015
Dissertations - FacEMAAcc - 2015

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