Auditors in Malta

Updated on Wednesday 05th June 2019

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Auditing in Malta

Maltese companies are required to nominate independent auditors in Malta registered with the local Accountancy Board. Maltese auditors must comply with the International Standards of Auditing (ISA). Auditors may also attend the company’s general meetings and are required to report to the shareholders. The auditor must declare whether the accounts comply with the Companies Act and the IFR standards and whether the accounting statements provide a true image of the company’s results. Companies are required to submit a copy of their annual financial statements with the Maltese Companies Register within 42 days from the submission of the statements with the annual general meeting. Depending on the type of company, the period is ten months after the end of the accounting period for private companies and seven months for public companies in Malta.

With an extensive background, our auditors in Malta have the necessary experience and skills to offer professional services to all types of companies, from small to large ones. You can rely on us for various accounting services, including audits in Malta.

Audit legislation in Malta

The accounting legislation in Malta is very extensive and includes various chapters, among which that related to audits is quite complex. This is why, when running a business in this country it is best to appoint specialized auditors in Malta to conduct the specific actions related to this part of managing a company.

There are several rules to comply with when it comes to offering audit services in Malta, some of them referring to the accounting and audit standards, while others covering the accountant and auditor profession. This is because such services must be provided by specialists in the accounting field.

The main laws governing accounting and audits in Malta are:

  1. the Companies Law which contains specific provisions related to the accounting and audit requirements imposed on businesses in Malta;
  2. the Audit Oversight Arrangements which refers to the control of Maltese auditors performing such activities;
  3. the Accountancy Profession Law which is one of the oldest legal frameworks enabled by the Accountancy Board in Malta;
  4. the Quality Assurance Act which refers to the standards imposed by the Accountancy Board when conducting an audit;
  5. the International Public Sector Accounting Standards which was adopted by the Maltese government in 2013;
  6. the International Financial Reporting Standards (IFRS) which stand at the base of completing audits and accounting tasks;
  7. the International Standards on Accounting and the International Education Standards which must be respected by accountants and auditors in Malta.

It is safe to say that all accountants and auditors in Malta must comply with both national and international regulations in order to ensure a high quality of their services.

Our Malta tax advisors offer such services in accordance with all the international norms imposed by their profession.

Financial statement audits – what you need to know

Independent financial statement audits can be conducted by our team of consultants for any kind of company in Malta, tailored to the needs of international investors. The guidance and the support of our professional team of accountants in Malta will help a business stay away from financial risks and complex cases as much as possible, regardless of the sector of activity and if the company is small, medium or large. The latest audit methodology is used for leading independent financial statements for enterprises in Malta with the purpose of delivering excellent results. International companies with establishments in Malta can benefit from complete guidance and a correct approach with the purpose of delivering updated financial reports.

The accounting records of a Maltese company must contain:

  • all the sums of money entering and exiting the company during a financial year;
  • all the expenses receipts of a company;
  • the sheets with detailed information on the assets and liabilities of the business;
  • statements of stocks or other goods belonging to a company at the end of each financial year or period, as established by its management.

It is the auditors’ duty to verify the integrity of these accounts.

Local companies can request the services of audit firms in Malta when running audits. As a matter of fact, when an independent audit, outside the requirements of the law, is desired by a business owner, an independent auditor will be able to provide a clear picture of a company’s performance at a certain point.

What is a statutory audit?

The complexity of financial reporting enters the jurisdiction of our experienced accountants in Malta where a statutory audit plays a leading role for companies. Here is what you need to know about statutory audits for Maltese companies:

  • The bookkeeping records, the financial transactions, and the bank balances are verified through a statutory audit.
  • The purpose is to see if the company presents accurate financial information.
  • Several financial records are examined by experts through statutory audits.
  • Specific measures can be implemented if the audit report shows certain errors.

Foreign entrepreneurs can decide on opening accounting departments in the firm or better yet, they can choose the services of our accounting firm in MaltaStatutory audits are mandatory for companies in Malta, and if you need guidance and support in this case, you may address your inquiries to our team of accountants.


Maintaining accounting records in Malta

Maltese companies are required to maintain accounting records, according to the Companies Act. Accounting records are meant to explain a company’s transactions and facilitate the preparation of the Maltese company’s financial statements. All records of accounts will usually be kept at the company’s registered office. For companies with certain total revenue, the preparation of financial statements can follow the regulations established by the General Accounting Principles for Smaller Entities (GAPSE) in Malta. The Maltese Companies Act also states that company directors are required to present to the shareholders of the business’ financial records annually.

Financial statements must contain a balance sheet and the profits and losses for a certain period of time. In Malta, companies usually request the accounting services of specialists. You can also talk to our accountants in Malta who can help you prepare the financial statements and can also offer you other accounting services.

Filing financial annual reports and statements in a Maltese company

All audited accounts and financial statements must be handed to the company’s director in charge of filing the annual financial statements and reports. Specific standards must be complied with at the moment of filing such accounting documents.
The following aspects must be considered when filing the annual financial statements and reports, according to our auditors in Malta:

  • private companies must file their accounting documents no later than 10 months after the end of the financial year;
  • public companies must file their accounting documents no later than 7 months after the end of the financial year;
  • all financial statements must be accompanied by the director, shareholders and auditor’s reports;
  • companies must also file a copy of the financial statements with the Companies House within 42 days from the end of the filing date of the statements;
  • companies must also file an annual return with the Companies Register at least once a year, at the anniversary of the company.

Our accountants in Malta can explain all the accounting and audit requirements imposed on companies based on their size, while our auditors can handle all the aspects related to the audits in your business.

Accounting rules in Malta

Accounting principles in Malta are based on the International Financial Reporting Standards (IFRS) and the Accounting Regulation no. 1606/2002. Maltese companies falling under the regulations of GAPSE must meet the following criteria for a consecutive period of two years:

  • a company’s revenue must not exceed 35 million euros,
  • must hold total assets amounting up to 17.5 million euros,
  • must have a maximum number of 250 employees.

According to the Commercial Law, every company in Malta must maintain a waste book, a journal, an inventory book, a cash book, and a ledger. The bookkeeping must contain records of receipts and expenditures, sales and purchases, assets and liabilities. Also, every company will issue tax invoices whenever selling a good or service.

Bookkeeping services in Malta

All the financial transactions of a company are recorded with the help of bookkeeping. Our team of accountants in Malta are at your service at any time and can provide you with bookkeeping services in a diligently and efficient manner, serving the best interest of the company. It is important to know that the International Financial Reporting Standards plus the local regulations are respected and imposed for companies registered in Malta. Correct bookkeeping will lead to proper audits in the firm and a smooth process for registering all the financial information in the company. Let us remind you that our local team of accountants in Malta has ample experience in helping companies by providing complete bookkeeping services, regardless of the type of company and activities involved.

What is auditing evidence for Maltese companies?

The certification of the financial statements of a firm is made by a qualified accountant if the auditing evidence is provided. This represents the information of all the financial transactions in the firm reported in compliance with the international and domestic laws governing this area. The auditing evidence is extremely important for companies registered in Malta because it provides complete and accurate transparency for further audit reports and statements. In other words, the audit evidence contains both details that sustain and validates the management's declarations concerning the financial statements or internal control of the financial reporting and information that denies such statements. Being cumulative in nature, the audit evidence contains the type of proof which is gained from varied audit measures made during the course of an audit, it might include audit evidence obtained from other sources, like former audits or quality control procedures in the company.

Even if accounting and audit services might seem complex for large companies in Malta, our team of accountants is at your disposal if you decide for such services. 

Audit services in Malta

All the services provided by our auditors in Malta comply with the local and international regulations. Our team of CPA Malta accountants has the necessary knowledge and experience to offer a wide range of services, auditing being one of them.

You can rely on our auditors in Malta for running audits under the confinement of the law, but also for completing independent audits every time you consider your company needs one. We can propose tailored solutions which benefit your business based on thorough analyses of all financial documents.

For accounting and auditing services, please contact our accountant in Malta.