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dc.identifier.citationBaldacchino, P. J. (1992). The auditor-management relationship in a microstate perspective (Master's dissertation).en_GB
dc.description.abstractThe main objective of this thesis is to examine the relationship problems that exist between external auditors and managers in the microstate of Malta. Such problems are discussed with twenty audit practitioners and an equal number of senior financial executives on the island. Issues in communication and independence are studied, followed by a focus on the complications of management fraud , a small company environment , and government control. In general, auditors are seen to exert a positive influence on managers, but the study points out in particular that: (i) A lack of communication skill training, management education in accounting and time pressures on both sides appear behind various barriers between the parties. Besides, existing written communications are not seen as constructive enough, and managers view even the statutory report itself as potentially more meaningful and useful. Both sides also see certain report qualifications as leading to the replacement of auditors, and the law needs to be more protective in this regard. (ii) While psychological and economic factors influence auditor independence, one problem more typical of a small country is that of close relationships. The implementation of ethics and professional standards also appears difficult. Both sides agree that the provision of accounting services in non-small companies is a threat to independence , and see as minimal the influence of third parties, beyond shareholders, on the auditor-management rapport. (iii) While, on his part, the auditor is also perceived as little able to give protection to outside third parties as regards management fraud, increased managerial duties are felt necessary as to the maintenance of internal controls. (iv) Relationships appear even closer in small companies, where a tax evasion mentality seems prevalent among managers, and changes in small company auditing are wanted by both sides. (v) As regards government-controlled enterprises, these seem to require more controls on the audit process, such as audit committees and auditor rotation. Clearly, there is ample room for improvement in the relationship, and, as one manager said, much more is needed than merely copying what has been done elsewhere.en_GB
dc.publisherLoughborough Universityen_GB
dc.subjectAuditors -- Malta -- Attitudesen_GB
dc.subjectFinancial executives -- Malta -- Attitudesen_GB
dc.subjectAuditing -- Standards -- Malta -- Case studiesen_GB
dc.subjectCorporate governance -- Maltaen_GB
dc.subjectCommunication in financial institutions -- Maltaen_GB
dc.titleThe auditor-management relationship in a microstate perspectiveen_GB
dc.rights.holderThe copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder.en_GB
dc.contributor.creatorBaldacchino, Peter J.-
Appears in Collections:Scholarly Works - FacEMAAcc

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