BOV TALKS ARTIFICIAL INTELLIGENCE IN THE BANKING WORLD
by Bank of Valletta
9th April 2024
by Griffiths + Associates Ltd
29th July 2022
Audit Malta Requirements.
Generally, all limited liability companies registered in Malta are required to prepare a set of audited financial statements every year. These audited financial statements will also be required for the purpose of the preparation of the income tax return to be filed on an annual basis.
Article 4(1) of the Accountancy Profession Regulations, 2016 states that audits and review engagements, may only be carried out by an individual, in his name or on behalf of an audit firm, holding a practicing certificate in auditing issued in terms of article 4 of the Act.
Appointment of auditors:
The company shall, at each annual general meeting at which the financial statements are presented, appoint an auditor to hold office from the conclusion of that meeting until the conclusion of the next general meeting.
Responsibilities of the auditor:
The auditors of a company have responsibilities under the Companies Act to report to the company’s shareholders if, in their opinion:
Auditing standards:
A company’s auditors shall make a report to the company’s shareholders on the annual accounts of the company. The auditors’ report shall be drawn up in accordance with generally accepted auditing standards and shall state whether in the auditors’ opinion the annual accounts have been properly prepared in accordance with the Companies’ Act, and whether a true and fair view is given of the state of affairs and of the profit or loss of the company for the accounting period. Where applicable, the auditors’ report shall consider whether the information included in the directors’ report is consistent with the accounts.
Most often, “doing auditing” sounds very abstract for the majority of clients, they have no ideas what the audit procedure is and how it happens. In this regard, Griffiths + Associates, being a boutique licensed consulting, accounting and audit firm in Malta, would like to share their audit approach to show clients what it is and how it works.
Griffiths + Associates provides value to the clients by creating a custom audit approach that is based on a client’s specific needs, risks and opportunities, using a professional audit management platform.
Our definite advantage is that the audit is always carried out by CPAs are part of the core team, not individuals brought in as required. Our audit team is made up of qualified and competent professionals who possess the required skills to carry out audits in an efficient and effective manner.
Our professional responsibility is to obtain sufficient audit evidence before an opinion is expressed on any financial statements. To achieve this, we will conduct our work in the following phases:
I. Audit planning and risk assessment:
No other phase of the process affects the success of an engagement more than the time spent in planning the general scope and direction of the audit, including assessing the risks of financial statement misstatements. As part of that process, we will conduct a pre-audit meeting with management to discuss the scope and timing of the audit. The risk assessment audit standards require assessments based on an understanding of internal controls over your financial reporting and determination of the areas that present risks of material misstatement to your financial statements. We then design our audit approach to include tests of specific internal controls and substantive audit procedures which are tailored to the identified risks. Our risk assessment includes consideration of the following factors:
II. Year-End Fieldwork and Substantive Testing:
Based on the results of our risk assessment and internal control evaluation, a specific audit plan will be designed to focus expanded procedures on areas with the greatest risk of material misstatement, error, and fraud. We will use tests of details, substantive analytical procedures, or a combination of the two to conclude on the reasonableness of the given transaction class or account balance. By utilizing a blend of substantive testing (vouching underlying transactions to support), and substantive analytical testing (testing data through overall and stratified analysis), we are able to cover significant ground while still getting a quality level of detailed depth to our testing. Striking a good balance and not overlying on one type of testing over the other is integral to a thorough and efficient audit.
Audit Focus:
Based on our audit experience with similar companies, the primary areas of audit focus in a typical year include:
Cash & Investments; Receivables & Revenues; Capital assets; Accounts Payable and Expenditures; Long-term debt and other liabilities; Deferred Revenue; Compliance with purchasing and expenditures policies and controls; Compliance with laws and regulations; Any special transaction or situations with financial management or reporting significance; Commitments and contingencies; and Reporting in the financial statements in accordance with IFRS or GAPSME.
Typical substantive procedures include:
Substantive procedures are an integral part of a competent and thorough audit. Significant transactions must be supported evidentially, and when they cannot be supported that may be a symptom of a potential material misstatement or other systematic issue. Typically, the “proof is in the pudding”, so to speak, and in many cases the best way to test something is by verifying the ingredients that make it up.
Audit Sampling:
Audit sampling provides the auditor an appropriate basis on which to conclude on an audit area by examining evidence from a sample of the entire population. We utilize both statistical and non-statistical sampling techniques, depending on the type of testing being performed. Internal control, substantive and compliance testing samples are generally selected using nonstatistical techniques. Sample sizes are determined by risk assessment and nature of the population.
Typical analytical procedures:
This analytical work allows us to form quality expectations to compare results to. When results don’t align with our expectations, we investigate further to obtain sufficient evidence to conclude whether there is a valid reason for the deviation or if not, determine the root of the issue causing the variance. This is a great method for identifying systemic and significant issues and/or material misstatements.
III. Reporting:
This phase includes:
Finishing the conversation, we’d like to note that such approach and properly performed, meticulous audit secures a peace of mind from knowing your statutory obligations are met, accounts are true and potential problems can be identified early on. You can also add value to your business by using the audit as a basis for helping you develop strategies to drive your business forward.
For more information about our audit and compliance services, or to find out how we can become your CPA partner, please email us at info@griffithsassoc.com.
by Ganado Advocates
5th April 2024
by CSB Group
5th April 2024
by Bank of Valletta
21st March 2024
by Bank of Valletta
18th March 2024
by Ganado Advocates
4th March 2024
by Ganado Advocates
23rd February 2024
by HSBC Bank Malta p.l.c.
19th February 2024
by Bank of Valletta
29th January 2024
by Bank of Valletta
17th January 2024
by CSB Group
12th January 2024
by Ganado Advocates
3rd January 2024
by Ganado Advocates
3rd January 2024
by Ganado Advocates
3rd January 2024
by Bank of Valletta
28th November 2023
by Bank of Valletta
23rd November 2023
by Bank of Valletta
3rd November 2023
by Ganado Advocates
1st November 2023
by Ganado Advocates
1st November 2023
by Ganado Advocates
1st November 2023
by Griffiths + Associates Ltd
31st October 2023
by Ganado Advocates
16th October 2023
by Bank of Valletta
29th September 2023
by Bank of Valletta
31st August 2023
by Bank of Valletta
28th August 2023
by Ganado Advocates
16th August 2023
by Ganado Advocates
16th August 2023
by Ganado Advocates
11th August 2023
by APS Bank plc
31st July 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
26th May 2023
by Bank of Valletta
7th May 2023
by Infocredit Group Limited
3rd May 2023
by Bank of Valletta
14th April 2023
by Ganado Advocates
10th April 2023
by CSB Group
14th March 2023
by Ganado Advocates
24th February 2023
by CSB Group
21st February 2023
by Griffiths + Associates Ltd
20th February 2023
by FinanceMalta
14th February 2023
by Bank of Valletta
31st January 2023
by CSB Group
19th January 2023
by Ganado Advocates
13th January 2023
by Ganado Advocates
13th January 2023
by Bank of Valletta
27th December 2022
by Bank of Valletta
21st November 2022
by BNF Bank plc
18th November 2022
by Bank of Valletta
3rd November 2022
by FinanceMalta
28th October 2022
by BNF Bank plc
6th October 2022
by Bank of Valletta
16th September 2022
by Bank of Valletta
2nd September 2022
by CSB Group
31st August 2022
by Bank of Valletta
11th August 2022
by BNF Bank plc
10th August 2022
by Griffiths + Associates Ltd
25th July 2022
by BNF Bank plc
14th July 2022
by Bank of Valletta
3rd June 2022
by Infocredit Group Limited
19th May 2022
by The Malta Institute of Accountants
13th May 2022
by Griffiths + Associates Ltd
9th May 2022
by Griffiths + Associates Ltd
3rd May 2022
by Infocredit Group Limited
28th April 2022
by Infocredit Group Limited
8th April 2022
by Infocredit Group Limited
8th April 2022
by Ganado Advocates
24th February 2022
by Bank of Valletta
16th February 2022
by BNF Bank plc
12th January 2022
by BNF Bank plc
3rd December 2021
by Western Union Business Solutions
1st November 2021
by FinanceMalta
8th July 2021
by FinanceMalta
8th July 2021
by FinanceMalta
8th July 2021
by Bank of Valletta
28th June 2021
by FinanceMalta
18th June 2021
by Bank of Valletta
1st June 2021
by Bank of Valletta
26th May 2021
by Bank of Valletta
25th May 2021
by Bank of Valletta
18th May 2021
by Bank of Valletta
17th May 2021
by Bank of Valletta
7th May 2021
by FinanceMalta
29th April 2021
by Bank of Valletta
13th April 2021
by Bank of Valletta
18th February 2021
by Western Union Business Solutions
5th February 2021
by FinanceMalta
14th January 2021
by Bank of Valletta
4th January 2021
by Bank of Valletta
21st December 2020
by Bank of Valletta
18th December 2020
by Bank of Valletta
18th December 2020
by Bank of Valletta
30th November 2020
by Bank of Valletta
29th September 2020
by Infocredit Group Limited
23rd September 2020
by Bank of Valletta
14th September 2020
by Bank of Valletta
14th September 2020
by Bank of Valletta
2nd September 2020
by Bank of Valletta
19th August 2020
by APS Bank plc
3rd August 2020
by Bank of Valletta
31st July 2020
by Bank of Valletta
31st July 2020
by Ganado Advocates
17th July 2020
by FinanceMalta
10th June 2020