Auditors are responsible for expressing their independent opinion on whether a set of financial statements depict a fair and solid financial position and performance of an entity and whether they have been properly prepared in all material aspects and if they are in accordance with the applicable reporting framework.
Audits are set to enable the auditor to express an independent opinion on whether a set of financial statements gives a true and fair view of the financial performance and position of the entity. It also questions whether they have been properly prepared, in all material aspects and in accordance with the applicable reporting framework. The various stakeholders of the company may need to place reliance on the financial statements. External audit provide a reasonable basis for the users to place reliance on the company’s financial statements.
An audit is a type of assurance engagement that is carried out by an auditor to give an independent opinion on a set of financial statements.
Internal audits are independent, objective, assurance, and consulting activities designed to add value and improve an organisation’s operations. It helps an organisation achieve its objectives by bringing a systematic and disciplined approach in order to evaluate and improve effectiveness of risk management, control and governance processes.
Maltese registered companies are required to nominate an independent auditor who is registered with the local Accountancy Board. An audit will then be carried out on the annual accounts that comply with the International Standards of Auditing (ISA).
Companies are urged to submit a copy of their annual financial statements with the Maltese Companies Registrar within 42 days of the approval date of the financial statements.
Private companies: the audited financial statements should be approved by not later than ten months after the end of the accounting period.
Public companies: the audited financial statements should be approved by not later than seven months after the end of accounting period.