What is the procedure in regard to the imposition of regulatory penalties?
The Board may impose a regulatory penalty, subject to the following terms and conditions:
• the Board shall not be entitled to impose the regulatory penalty before the firm agrees that a breach of the provisions of this Directive has been committed thereby;
• after considering any representations made by the firm in respect of the penalty and the payment date(s), the Board shall determine the quantum of the penalty and when it is to be paid and this determination shall be final, conclusive and not subject to appeal. The Board will set this out in writing in the letter sent thereby to the statutory auditor or to the statutory audit firm, proposing the imposition of the penalty: Provided that the penalties for the breaches listed in Schedule 1 of Directive 4 – Quality Assurance hereof shall not exceed the amounts prescribed in the said schedule;
• if the statutory auditor or the statutory audit firm accepts the penalty which is being proposed for imposition thereon by the Board and the relative terms thereof, written confirmation in this sense must be received by the Board within a period of two (2) calendar weeks from the date of service of the letter from the Board containing the proposal, in which case the proposed regulatory penalty and the relative terms shall become effective and binding on the statutory auditor or the statutory audit firm, so however that in such case no further disciplinary action shall be taken in respect of the statutory auditor or the statutory audit firm.
Updated August 2023
What happens if the firm does not agree to a breach of Directive 4?
If a statutory auditor or the statutory audit firm does not agree that a breach of the provisions of this Directive has been committed, or does not notify its acceptance of the penalty as set out in paragraph 28(c), or does not fully adhere to the terms of the penalty imposed thereon by the Board, the Board may determine that disciplinary action should be taken in respect of the particular firm in terms of article 15 of the Act.
Updated August 2023
How should the notice of the breach reach the firm?
Except where otherwise provided, a notice or any other document to be served under this Directive shall be delivered by hand, or sent by registered mail. In this respect the following shall apply:
• If delivered by hand, the said notice or other document must be handed to the statutory auditor or in case of a statutory audit firm to a principal thereof and service thereof shall be deemed to have been effected as soon as such document is handed to the said statutory auditor or principal.
• If sent by registered mail, the said notice or other document shall be addressed to the statutory auditor or in case of a statutory audit firm to a principal thereof and be sent to the latest address given by the statutory auditor or the statutory audit firm to the Board; service thereof shall be deemed to have been effected five business days after the date on which the particular notice or other document is posted.
Updated August 2023
What are the maximum penalties that can be imposed by way of quality assurance regulatory penalties?
As per Schedule 1 of the Quality Assurance Directive, the regulatory penalties for the following breaches shall not exceed:
• Re-scheduling of review visit without justifiable reason €232.94.
• Failure to respond to any requests made by the QAU within the time limits set out in such requests €23.29 per day.
• Delays in submission of fees and returns due €23.29 per day.
• Failure to submit documentation requested by the Board or the QAU within the specified time€23.29 per day.
• Failure to provide access to information in terms of paragraph 16 €23.29 per day.
• Failure to respond to the Board on requested remedial action €23.29 per day.
Updated August 2023
Clarification of the definition ‘principal’
As defined in the Accountancy Profession Act a "principal" means every member of the administrative or management body of a firm, and any individual who is authorised to sign a report on behalf of a firm; and in the case of an audit firm, shall include any individual responsible for leading the engagement:
Provided that any individual carrying out the role of an engagement quality control reviewer on a statutory audit, and who is not authorised to sign a report on behalf of the firm in any capacity, is not deemed a principal: Provided further that a warrant holder or a holder of a practising certificate who acts as a sole practitioner, may not engage a principal to act on his behalf.
For clarification purposes, the following interpretations have been made:
• ‘the administrative or management body of a firm’ is equivalent to the board of directors or partners of a firm;
• ‘a report’ as per the definition does not just refer to an audit report but can be any report signed by the firm;
• ‘the individual responsible for leading the engagement’ includes all those individuals who, on a particular audit, carry out the ‘responsibility of a partner’ in accordance with International Standards on Auditing.
• ‘quality control engagement reviewers’ –if the quality control engagement reviewer is not employed by the firm and is a professional in his own right, he would be considered to be a principal in the second firm and thus would be covered by his own professional indemnity insurance and would be subject to quality assurance for his own firm. Quality control engagement reviewers who do not have the right to sign off on behalf of the firm and who do not audit PIEs should not be considered as a principal.
• ‘any other person in the chain of command for that audit’ - the Board means to clarify that the chain of command should be interpreted as the senior partner, head of audit, lead partner, the audit risk management partner and anyone else who can influence the audit. It does not include anyone outside the firm, for instance, persons in firms forming part of the network.
Updated August 2023
Implications on Professional Indemnity Insurance
• For sole practitioners and firms, the principals of the practice and all connected undertakings of the practice should be taken into account when determining the level of professional indemnity insurance required. For clarity sake, a “connected undertaking” as defined in the Accountancy Profession Act means an undertaking which is effectively managed or promoted as one practice with the firm or as a related undertaking of the firm.
• In the case of registered audit firms and sole practitioners who do not have limited liability then the lower Professional Indemnity Insurance thresholds apply for the registered audit firm and its connected undertakings. Therefore as from 1 January 2010, the Professional Indemnity Insurance coverage should be the lower of €100,000 per principal (for all principals (including non audit principals) of the registered audit firm and its connected undertakings) or the amount arrived at by multiplying the total annual fees of the firm including its connected undertakings by three.
• It is important to note that although the connected undertakings would have limited liability, as long as the registered audit firm does not have limited liability, the higher levels of Professional Indemnity Insurance would not be triggered off.
• In the case of registered audit firms which have limited liability, either directly or indirectly, then the higher Professional Indemnity Insurance thresholds apply for that firm and its connected undertakings. Therefore, in such cases, as the Professional Indemnity Insurance coverage should be the lower of (i) €500,000 per principal holding a practicing certificate (whether signing audit reports or not) and €100,000 multiplied by the remaining principals in the said firm and any connected undertakings; or (ii) the amount arrived at by multiplying the total annual fees of the firm including its connected undertakings by five.
• It is important to note that should the higher thresholds of Professional Indemnity Insurance be triggered off due to the registered audit firm having limited liability, these higher thresholds would apply also to the principals of the connected undertakings.
Updated August 2023
Implications on the Quality Assurance Regulatory Fee
For the purpose of establishing the correct Quality Assurance Regulatory Fee payable, please note that the number of principals of the registered audit firm (not including the principals of the firm’s connected undertakings) is based on the definition of principal found in this document. The applicable fees are laid down in Schedule 2 of the Accountancy Profession Regulations as follows:
• For statutory audit firms with five or more principals €5,950.50, For statutory audit firms with less than five but more than two principals €1,630.56.
• For statutory audit firms with less than three but more than one principal €582.34, For full time sole practitioners €232.94, For part time sole practitioners €116.47.
Updated August 2023
The Requirements – Certified Public Accountant
Article 3(1) of the Accountancy Profession Act set out that for a person to practise the profession of accountant, he/she must be a warrant holder.
Furthermore as per article 3(2) of the Accountancy Profession Act, the person shall qualify only if:
• he is of good conduct and repute;
• he is of full legal capacity;
• he has successfully completed the course leading to the award of the professional accountancy degree organized by the University of Malta; or attained university entrance or equivalent level, then completed a course of theoretical instruction recognised by the Board: Provided that in every case the courses referred to in this sub-article shall cover such subjects at such levels as may be prescribed;
• unless covered in the courses referred to in paragraph (c), he has passed an examination, part or all of which must be in writing, of professional competence of University final or equivalent examination level, recognised or set by the Board for that purpose: Provided that the Board shall ensure that in the case of an application for a practising certificate in the field of auditing the examination of professional competence referred to in this sub-article adequately covers the necessary level of theoretical knowledge of the prescribed subjects relevant to auditing as well as the ability to apply such knowledge in practice: Provided further that where a person has completed a course of theoretical instruction and passed an examination of professional competence of university final or equivalent examination level relating to the accountancy profession and recognised by the Board but which did not cover all of the subjects prescribed, the Board may accept such qualification after such person shall have passed such examination or examinations in local laws and in those other subjects as the Board may determine according to the particular circumstances;
• He satisfies the Board that he has adequate experience in the practice of accountancy for an aggregate period of three years, of which an equivalent of at least one year’s experience shall be gained after he has obtained the academic qualifications stipulated in paragraph (c).
Updated August 2023
The Requirements – Practising Certificate Holder
Article 4(1) of the Accountancy Profession Regulations, 2016 sets out that audits and review engagements, or any other matter reserved to an auditor in terms of any other law, may only be carried out by an individual, in that individual’s name or on behalf of an audit firm, holding a practicing certificate in the field of auditing issued in terms of article 4 of the Act, to an individual who:
• holds a warrant issued in terms of article 4(1) of the Act and satisfies the Board that: (i) he has adequate qualifications in auditing at an advanced level; (ii) satisfies the conditions referred to in article 3(2)(d) of the Act; and (iii) has gained the equivalent of three years full time practical training in inter alia auditing of financial statements, at least two-thirds of which shall be with an auditor approved in any Member State: Provided that at least eighteen months of this practical training were gained after obtaining the degree or academic qualification relating to the accountancy profession prescribed in article 3(2)(c) of the Act; or
• he satisfies the conditions laid down by article 4(3) or 4(6) of the Act: Provided that a person shall, for all intents and purposes of law, be deemed to be a holder of a practising certificate upon receipt of a letter by the Chairman of the Board containing a declaration that such person has satisfied the requirements of this sub-regulation and that he may carry out audits.
Updated August 2023
Registration of an approved auditor in another Member State in Malta
As set out in article 4(3) of the Accountancy Profession Act, the Board shall issue a practicing certificate in auditing in Malta to an individual of good repute who is an approved auditor in any Member State provided that such individual has passed, to the satisfaction of the Board, an aptitude test, covering local laws and regulations relevant to auditing, set by the Board for this purpose.
Updated August 2023
Registration of Third-Country Auditors and Audit Entities that provide an audit report concerning the financial statements of a company incorporated outside the EU
Article 4(6) of the APA sets out that subject to reciprocity and subject to rules that may be prescribed by the Board, the Board may issue a practising certificate in auditing to a third country auditor if it is satisfied that such individual is in possession of the qualifications set out in Article 3(2) of the Accountancy Profession Act, has passed an aptitude test set by the Board and satisfies any other conditions which may be prescribed.
Furthermore, Article 7(11) of the APA sets out that the Board may register a third-country auditor or a third-country audit entity only if:
• he/she/it is of good repute;
• in the case of a third-country audit entity, the majority of the members of the administrative or management body of the third-country audit entity meet the requirements which are equivalent to those laid down in article 10(6);
• the third-country auditor or the third-country auditor carrying out the audit on behalf of the third-country audit entity meets requirements which are equivalent to those laid down in article 3(2);
• the audit referred to in sub-article (6) is carried out in accordance with international auditing standards and complies with the requirements of independence, objectivity and audit fees set out in this Act or by the Board or with equivalent standards and requirements;
• he/she/it publishes on his/her/its website an annual transparency report which includes the information referred to in article 18(1) or it complies with equivalent disclosure requirements.
Updated August 2023
Application Process
Article 4A (1) of the Accountancy Profession Regulation requires that every person seeking to obtain a warrant granted by the Minister, or a practising certificate issued by the Board as the case may be, (hereinafter referred to as the "applicant"), shall submit to the Board an application form in such form as may be determined by the Board from time to time and made publicly available on the official website of the Board together with such other documentation as may be set out in the application form.
Provided that the Board may, in ensuring whether an applicant satisfies the requirement mentioned in article 3(2) (a) of the Act, request and conduct an interview with such applicant.
Every applicant shall, together with the application form submitted to the Board make a payment of an application fee of twenty five Euro (€25.00) payable to the Board.
The Board shall, without delay, acknowledge receipt of the application form and the application fee by letter to the applicant and shall specify:
• the periods mentioned in sub regulations (4) and (5) within which the Board shall determine the application;
• the procedure under which a refusal by the Minister to issue a warrant, or the refusal by the Board to issue a practising certificate, may be appealed in terms of article 15B of the Act; and
• that an applicant shall be deemed to be a warrant holder, or a holder of a practising certificate, where the Board does not determine an application form within the periods mentioned in sub-regulations (7) and (8).
In the case of an incomplete application form, the Board shall, without delay, inform the applicant of the need to supply any additional information or documentation, and that the Board shall not commence processing the application form unless it receives a complete application form.
Provided that an application form shall not be deemed to be complete unless the Board is in receipt of all the documentation required to be submitted together with the application form, as set out in the same application form.
The Board shall determine whether to issue a practising certificate, or advise the Minister to issue a warrant, as the case may be, to an applicant, within sixty days from the date of receipt of a complete application form.
The periods mentioned in sub-regulation (5) may, prior to the expiry of the relevant period, be extended by the Board for one period of not more than thirty days. Such extension and the reasons thereof shall be notified to the applicant without delay.
Where the Board has not determined whether to issue a practising certificate, or to advise the Minister to issue a warrant, to an applicant, within the periods mentioned in sub-regulation (5), or within the extended period mentioned in sub-regulation (6), such applicant shall, subject to sub-regulation (8), be deemed to be, for all intents and purposes of law, a warrant holder or a practising certificate holder.
A person shall be deemed to be a warrant holder, or a practising certificate holder in terms of sub-regulation (7), only in the event that, following the expiration of the periods referred to in sub-regulation (5) and, if applicable, sub-regulation (6), the applicant notifies the Board by means of a registered letter that it has not determined his application in terms of this regulation, and the Board fails, within a period of forty-five days from the date of receipt of the said registered letter, to determine the applicant’s application.
Where an applicant is refused a warrant by the Minister or where a practising certificate is not issued to the applicant by the Board, the applicant shall be informed without delay. Such a decision shall be notified by registered mail to any person to whom such decision applies and shall be subject to appeal in terms of article 15B of the Act.
Updated August 2023
I am qualified to act as an accountant outside Malta; can I be granted a warrant to practise in Malta for a limited period of time or for a specific purpose?
If you met the requirements set out in Article 3(3) of the Accountancy Profession Act, the Minister may, on the advice of the Board, issue, to any person who is duly qualified to act as accountant in any country outside Malta, a warrant to act as accountant in Malta for such limited period(s) or such specific purpose(s), or both such period and purpose, and subject to such other conditions as may be specified in the warrant.
Updated August 2023
Does the accounting/auditing experience need to be continuous to qualify for a warrant?
No, as long as the aggregate experience meets the total requirements identified by Law, then this is acceptable. For an individual to be able to apply for a CPA warrant or practising certificate in auditing 3 years of experience on a full-time basis is required. Part-time employment will be taken on a pro rata basis.
Updated August 2023
I have attained ACCA qualification. Is this enough to be recognised as a full academic qualification in processing my application for a warrant?
No, to practise as an accountant/auditor in Malta, you need to pass the local variants examinations. There are different pathways to this.
You may either enrol with the University of Malta for specific study units in taxation and company/financial services law. Such application is usually done online in the summer prior to the start of the academic year.
Alternatively you may enrol with the Malta Institute of Accountants/ACCA.
For applicants applying for a CPA warrant, the applicant must have obtained passes in advanced Maltese taxation, corporate law as well as basic auditing.
In the case of practising certificate applicants passes must be obtained in advanced Maltese taxation, corporate law as well as advanced auditing.
Upon successful completion of these two local variants and auditing (the advanced auditing level pass is only required in the case of applicants applying for a practising certificate in auditing), you have attained all the necessary academic qualifications to make you eligible to be awarded the warrant and/or practising certificate in auditing. It is advisable that you provide a copy of these exams results with your application form.
Updated August 2023
What experience do I need to be able to apply for a warrant?
In respect to warrant experience, out of the three years experience required, at least one year should be gained after obtaining your qualification. The other two years of experience may be obtained pre-qualification or post-qualification.
What experience do I need to be able to apply for a practising certificate in auditing?
In the case of a practising certificate in auditing, of the three years experience required, at least eighteen months should be gained post-qualification, while the other eighteen months of experience may be obtained
either pre-qualification or post-qualification.
Updated August 2023
I work within Government (e.g. IAID, NAO, TCU, Internal Audit – Central Bank, Budget Office, etc). Are there special rules applicable to my application for a practising certificate in auditing?
For an individual to be able to apply for a practising certificate in auditing 3 years of experience on a full-time basis is required. Part-time employment will be taken on a pro rata basis.
In accordance with the transposed requirements of the EU Directive on Statutory Audits of Annual Accounts and Consolidated Accounts, in the case of a practising certificate in auditing, 2 years out of the total of 3 years experience should be with an auditor or audit firm approved in any Member State. Furthermore, of the 3 years experience required, 2 years experience must be obtained in statutory audit.
National Audit Office For Government employees employed with the National Audit Office, all work experience obtained within this Office will count towards the 3 years experience required to attain a practising certificate in auditing. Furthermore, the two years experience that is required in statutory audit may all be derived from experience obtained in the National Audit Office.
Internal Audit & Investigations Division & Tax Compliance Unit In regards to Government employees working within the Internal Audit & Investigations Division/Tax Compliance Unit which is appropriately supervised by another statutory auditor, work experience obtained within the Internal Audit & Investigations Division/Tax Compliance Unit would be considered to partially satisfy the requirements needed to obtain a practising certificate in auditing. Applicants working in these departments should note that out of the two years statutory audit experience required – a minimum of one year (defined as 48 weeks) of statutory audit experience is required. The remaining practical experience may be obtained within the Internal Audit & Investigations Division/Tax Compliance Unit environment.
Should the applicant have less than 48 weeks of Internal Audit & Investigations Division/Tax Compliance Unit experience when taking into account the two years of statutory experience required, the remaining balance would need to have been carried out in a statutory audit environment.
Updated August 2023
I am employed within a private internal audit function. Would this experience count towards the attainment of a practising certificate in auditing?
In regards to applicants employed within an internal audit function which is appropriately supervised by another statutory auditor, work experience obtained within this internal audit department would be considered to partially satisfy the requirements needed to obtain a practising certificate in auditing.
Applicants working in these departments should note that out of the two years statutory audit experience required a minimum of one year (defined as 48 weeks) of statutory audit experience is required.
The remaining practical experience may be obtained within the internal audit environment.
Should the applicant have less than 48 weeks of internal audit experience when taking into account the two years of statutory experience required, the remaining balance would need to have been carried out in a statutory audit environment.
Updated August 2023
What documentation does one need to submit with the application form?
With the CPA application one must submit originals (and photocopies in the case of academic qualifications) of academic accountancy qualifications and a recent police conduct certificate.
In the case of a practising certificate application one needs to submit a recent police conduct certificate.
Updated August 2023
Who can act as my referee?
In your application form, you are also requested to indicate the name and address of two referees of your choice on the form. In the case of an application for a practising certificate, both referees should be holders of a practising certificate. There is no further obligation on the referees of a CPA – though preferably these should also be CPA warrant holders.
Updated August 2023
How do I certify my accounting / auditing experience?
In your application form, you have to include the name and address of the firm or organisation in which you gained your training experience, clearly indicating the duration of such appointment. Consequently, the Secretary of the Accountancy Board will write a letter to your employers to confirm this experience. The confirmation by the employer should be on the organisation’s letter head. Such letter, which should be endorsed by a Certified Public Accountant (CPA) warrant holder in the case of accounting experience and a holder of a Practising Certificate in Auditing in the case of auditing experience, should detail the exact dates at which you were employed and confirm the experience in a practice environment.
Updated August 2023
Is a fee charged upon application?
A fee of € 25 shall be paid to the Accountancy Board for each application - the CPA warrant and the practising certificate in auditing are considered to be separate applications. However, one can apply for both CPA and practising certificate simultaneously obviously as long as the eligibility criteria are satisfied.
Updated August 2023
After attaining warrant, are there any requirements necessary to keep my warrant and/or practising certificate in auditing?
Yes, it is obligatory by Law that given the dynamism of the profession, all warrant holders must comply with Continued Professional Education as set out in Directive 1 of the Accountancy Profession Act. Furthermore each year, an annual return should be duly compiled by all warrant holders to enable the Accountancy Board to keep an updated register of warrant holders. A fee of € 23.29 is also charged each year for the annual registration fee that is payable to the Accountancy Board. If you are also a signing audit reports you are also required to pay an annual Quality Assurance Regulatory Fee. The rates for such fees can be found in Directive 4 of the Accountancy Profession Act.
Updated August 2023
Do I need to inform the Accountancy Board about certain changes in my standing data?
It is advisable that the Accountancy Board be notified within fifteen days of any change in address, surname or other relevant information so that the information detailed held by the Accountancy board as well as that shown on the website are as correct as possible.
Updated August 2023
Warrant to practice as an accountant
A warrant to practise the profession of accountant shall be issued by the Minister on the advice of the Board to any person who satisfies the requirements of article 3(2).
A person holding a warrant issued in terms of this article may in addition hold one or more certificates issued by the Board (hereinafter in this Act also referred to as "a practising certificate") to practise in such fields of the profession of accountant, including auditing, as may be prescribed and may not practise in such fields unless he holds the relative certificate.
The Board shall issue a practicing certificate to practise in the field of auditing in Malta to an individual of good repute who is an approved auditor in any Member State provided that such
individual has, to the satisfaction of the Board, passed an aptitude test, covering the local laws and regulations relevant to auditing, set by the Board for this purpose.
Where a practicing certificate in the field of auditing is withdrawn for any reason, the Board shall communicate that fact and the reasons for the withdrawal to the relevant competent authorities of the Member States where the auditor is also registered.
The Minister acting on the recommendation of the Board may make regulations prescribing the qualifications required for the issue of certificates in terms of sub-articles (2), (3) and (6) as
well as to regulate their suspension, withdrawal or the taking of any other regulatory measures which may be reasonably necessary to protect the public interest.
Subject to reciprocity and subject to rules that may be prescribed by the Board, the Board may issue a practising certificate to practice in the field of auditing to a third-country auditor if it is satisfied that such individual is in possession of the qualifications set out in article 3(2), has passed an aptitude test set by the Board in accordance with sub-article (3) and satisfies any other conditions which may be prescribed
A warrant holder shall be entitled to use the designation "Certified Public Accountant" as well as the abbreviation "CPA".
Updated August 2023
Will the Accountancy Board continue to accept the ACCA qualification post Brexit?
The Accountancy Board will continue to accept the ACCA qualification as a course of theoretical instruction in partial fulfilment of the requirements for the granting of the Certified Public Accountant (CPA) warrant in Malta post-Brexit in the same way as it had been accepted prior to Brexit, and this subject to the qualification being inclusive of the Maltese Law and Taxation variants. Consequently, at present, such acceptance is conditional to the ACCA qualification being either partially or fully undertaken under the MIA-ACCA Joint Examination Scheme i.e. with Maltese Law and Taxation variants offered either directly by the Joint Examination Scheme or by the University of Malta or equivalent. Updated August 2023
Is there any language requirement to be granted a warrant or practising certificate in auditing?
A warrant holder is required to have knowledge of the English or Maltese language. Updated August 2023
The Requirements- Firms
The Accountancy Profession Act (APA) defines a firm as meaning an audit firm or an accountancy firm as follows;
• "accountancy firm" means an entity, regardless of its legal form, formed in accordance with article 10 of the Accountancy Profession Act and any connected undertaking; and
• "audit firm" means an entity, regardless of its legal form, which is authorised to practise in the field of auditing in terms of article 10 of the Accountancy
Updated August 2023
The Requirements -Formation of Accountancy Firms
An accountancy firm can be formed as a partnership, whether a civil partnership or a commercial partnership or a company. Article 10 (1) of the APA states that where two or more persons intend to practise jointly as accountants, they may form an accountancy firm having as one of its main objects the practice of accountancy. In an accountancy firm which is not also an audit firm a warrant holder shall:
• constitute more than sixty per centum of the firm’s administrative or management body: Provided that in the case of an accountancy firm which is owned, managed and controlled by two individuals, only one of the individuals sitting on the administrative or management body of the firm shall be a warrant holder. No person may be a principal in an accountancy firm which is not also an audit firm unless such person: (a) holds a warrant; or (b) is a person of good repute and is appropriately qualified either by way of academic or professional qualifications or experience. A firm shall, when duly formed according to law, be registered with the Board, and upon such registration the principals, shall, for so long as it is so registered, be authorised by the Board to act, in the name and on behalf of the firm and where applicable, to bring to the notice of the public the fact that it may practise in any field of the profession of accountant for which a certificate may be required; and in the case of an accountancy firm it shall be entitled accordingly to use the designation of certified public accountants and the abbreviation "CPAs;
• hold a warrant issued under Article 4(1) of the APA. Furthermore, these persons must hold more than fifty per centum of the voting rights in the firm;
• Every firm registered under this article shall give to the Board such information as the Board may reasonably require or as may be prescribed, and shall give notice to the Board of any relevant change in any information previously given to it within fifteen days after the date on which the change occurs; and
• Notwithstanding any other provisions of this Act or of any other enactment and not withstanding any agreement to the contrary, the principals shall be responsible for the maintenance of the required professional standards and conduct including any applicable Code of Ethics, and generally responsible for the fulfilment of their obligations under this Act or any other applicable law.
Updated August 2023
The Requirements -Formation of Audit Firms
An audit firm can be formed as a civil partnership or a commercial partnership, or a company. As set out in Article 10 (1) of the APA the audit firm it shall be required to have as one of its main objects the practice of auditing and shall fulfil such other conditions as may be prescribed from time to time: Provided further that a firm may provide other services subject to compliance at all times with the rules on scepticism, independence and professional ethics set out in the Code of Ethics and any other regulations, directives or regulations issued in terms of article 8 of the Accountancy Profession Act.
Article 10(5) of the APA states that no person may be a principal in an audit firm unless such person:
• holds a practising certificate to practise in the field of auditing; or
• is an audit firm of good repute approved in a Member State; or
• is a person of good repute and is appropriately qualified either by way of academic or professional qualifications or experience.
An audit firm shall be of good repute and shall satisfy the following conditions:
• the individuals who carry out the audit on behalf of the audit firm must hold a practising certificate in the field of auditing;
• the majority of the voting rights in the audit firm must be held by an audit firm or audit firms approved in any Member State or by individuals holding a practising certificate in the field of auditing; and
• sixty per centum of the administrative or management body of the audit firm must be made up of an audit firm or audit firms approved in any Member State or by individuals holding a practising certificate in the field of auditing.
Provided that in the case of an audit firm which is owned, managed and controlled by two individuals, only one of the individuals sitting on the administrative or management body of the audit firm shall be required to satisfy the conditions laid down in this paragraph (c).
A firm shall, as set out in articles 10 (7) of the APA when duly formed according to law, be registered with the Board, and upon such registration the principals, shall, for so long as it is so registered, be authorised by the Board to act, in the name and on behalf of the firm and where applicable, to bring to the notice of the public the fact that it may practise in any field of the profession of accountant for which a certificate may be required under article 4(2); and in the case of an accountancy firm it shall be entitled accordingly to use the designation of certified public accountants and the abbreviation "CPAs".
When an audit firm carries out an audit, the audit report shall be signed at least by an individual auditor carrying out the audit on behalf of the audit firm.
Every firm registered under this article shall give to the Board such information as the Board may reasonably require or as may be prescribed, and shall give notice to the Board of any relevant change in any information previously given to it within fifteen days after the date on which the change occurs.
Notwithstanding any other provisions of this Act or of any other enactment and notwithstanding any agreement to the contrary, the principals shall be responsible for the maintenance of the required professional standards and conduct including any applicable Code of Ethics, and generally responsible for the fulfilment of their obligations under this Act or any other applicable law
Updated August 2023
Are firms required to pay an annual registration fee?
Yes firms are required to pay an annual registration fee of € 23.29.
Updated August 2023
Do I need to inform the Accountancy Board about certain changes in my standing data?
It is advisable that the Accountancy Board be notified within fifteen days of any change in address, surname or other relevant information so that the information detailed held by the Accountancy board as well as that shown on the website are as correct as possible.
Updated August 2023
Is a fee charged upon application?
A fee of € 25 is also payable to the Accountancy Board for registration of an accountancy firm as well as for an accountancy and audit firm.
Updated August 2023
Application Process
Article 4A (1) of the Accountancy Profession Regulation requires that every person seeking to obtain a warrant granted by the Minister, or a practising certificate issued by the Board as the case may be, (hereinafter referred to as the "applicant"), shall submit to the Board an application form in such form as may be determined by the Board from time to time and made publicly available on the official website of the Board together with such other documentation as may be set out in the application form.
Provided that the Board may, in ensuring whether an applicant satisfies the requirement mentioned in article 3(2) (a) of the Act, request and conduct an interview with such applicant.
Every applicant shall, together with the application form submitted to the Board make a payment of an application fee of twenty five Euro (€25.00) payable to the Board.
The Board shall, without delay, acknowledge receipt of the application form and the application fee by letter to the applicant and shall specify:
• the periods mentioned in sub regulations (4) and (5) within which the Board shall determine the application;
• the procedure under which a refusal by the Minister to issue a warrant, or the refusal by the Board to issue a practising certificate, may be appealed in terms of article 15B of the Act; and
• that an applicant shall be deemed to be a warrant holder, or a holder of a practising certificate, where the Board does not determine an application form within the periods mentioned in sub-regulations (7) and (8).
In the case of an incomplete application form, the Board shall, without delay, inform the applicant of the need to supply any additional information or documentation, and that the Board shall not commence processing the application form unless it receives a complete application form.
Provided that an application form shall not be deemed to be complete unless the Board is in receipt of all the documentation required to be submitted together with the application form, as set out in the same application form.
The Board shall determine whether to issue a practising certificate, or advise the Minister to issue a warrant, as the case may be, to an applicant, within sixty days from the date of receipt of a complete application form.
The periods mentioned in sub-regulation (5) may, prior to the expiry of the relevant period, be extended by the Board for one period of not more than thirty days. Such extension and the reasons thereof shall be notified to the applicant without delay.
Where the Board has not determined whether to issue a practising certificate, or to advise the Minister to issue a warrant, to an applicant, within the periods mentioned in sub-regulation (5), or within the extended period mentioned in sub-regulation (6), such applicant shall, subject to sub-regulation (8), be deemed to be, for all intents and purposes of law, a warrant holder or a practising certificate holder.
A person shall be deemed to be a warrant holder, or a practising certificate holder in terms of sub-regulation (7), only in the event that, following the expiration of the periods referred to in sub-regulation (5) and, if applicable, sub-regulation (6), the applicant notifies the Board by means of a registered letter that it has not determined his application in terms of this regulation, and the Board fails, within a period of forty-five days from the date of receipt of the said registered letter, to determine the applicant’s application.
Where an applicant is refused a warrant by the Minister or where a practising certificate is not issued to the applicant by the Board, the applicant shall be informed without delay. Such a decision shall be notified by registered mail to any person to whom such decision applies and shall be subject to appeal in terms of article 15B of the Act.
Updated August 2023
Who is required to have professional indemnity insurance?
Every firm formed under article 10 and every warrant holder or a holder of a practising certificate, shall, for so long as they hold such a warrant or practising certificate or, as the case may require, for so long as they are so formed, and thereafter with respect to anything done or omitted during that time, be covered by an indemnity insurance, by such company, in such manner and for such amount as may be prescribed.
Updated August 2023
How can I ensure that my practice/firm as set out in Article 11 of the APA is adequately covered as required by law?
The professional indemnity insurance as set out in Article 11 of the Accountancy Profession Act shall cover against any liability which such person or firm may incur for compensation in respect of any loss or damage which a client or any other person may suffer as a result of any negligent act, error or omission committed by any such person or firm, or any principal thereof, or by any of their employees, in the carrying out of their functions as well as against any claim in respect of any loss or damage brought about or contributed by any dishonest, fraudulent, criminal or malicious act or omission of any of their employees.
The indemnity insurance shall also extend to cover claims in respect of loss or damage made in the five years immediately following the cessation of the policy as a result of the retirement of or the surrender of the warrant or practising certificate by any principal and provided that the negligent act, error or omission giving rise to the claim had occurred during the period of insurance of the policy.
As set out in article 5 of the Accountancy Profession Regulation in the case of a sole practitioner and any connected undertakings the insurance policy shall reflect at least the lower of one of the two following options:
• one hundred thousand euro (€100,000) for the sole practitioner and any principal other than the sole practitioner of any connected undertaking; and
• the amount arrived at by multiplying the total annual fees charged by a sole practitioner and any connected undertaking in the course of his or its practice, by three;
As set out in article 5 of the Accountancy Profession Regulation in the case of a firm and any connected undertaking shall reflect at least the lower of one of the two following options:
• the said amount shall be equivalent of one hundred thousand euro (€100,000) multiplied by the number of principals in the said firm and any connected undertakings; and
• the amount arrived at by multiplying the total annual fees charged by a firm and any connected undertaking in the course of its practice, by three:
Provided that in the case of a firm structured in a manner such that the liability of its owners for statutory audit work is directly or indirectly limited, the appropriate limit of liability shall reflect at least the lower of one of the two following options:
• five hundred thousand euro (€500,000) multiplied by the number of principals in the said firm and connected undertakings who:(i) hold a practicing certificate in auditing; and (ii) are principals which are audit firms; (ii) one hundred thousand euro (€100,000) multiplied by the remaining principals in the said firm and any connected undertakings; and
• the total annual fees charged by the audit firm and any connected undertaking in the course of its practice, multiplied by five.
In the event of reasonable doubt as to whether a person or a firm and any connected undertakings are adequately covered by an indemnity insurance policy, the matter shall be conclusively determined by the committee appointed by the Board for the operation of a system of quality assurance in terms of article 7(2) of the Act.
Updated August 2023
Who is exempted from the requirement of having professional indemnity insurance?
As per article 11(3) of the Accountancy Profession Act, any person who is a warrant holder or a holder of a practising certificate in respect of any year in which he has not exercised the profession of accountant or auditor and who has before the commencement of such year informed the Board in writing that during that year he will not be exercising the profession of accountant or auditor. Therefore any warrant holder or a holder of a practising certificate who in any year - (i) does not in any manner exercise the said profession; or (ii) exercises the said profession as an employee of the Government or of a body corporate established by law, or of another person, or of a firm, in respect only of the exercise of such profession in the course of his duties during such employment, shall be exempted from the obligation to be covered by an indemnity insurance.
Updated August 2023
What information should I provide the Accountancy Board in respect to my professional indemnity insurance coverage?
Every person or firm bound to be covered by an indemnity insurance under this article shall each year, together with the annual return, inform the Board in writing of the name of the insurance company, the relative number of the insurance policy, provide a “Verification of Insurance” Certificate from the insurance company confirming that such person or firm is actually covered by the identified policy of insurance, and shall declare to the Board that such level of insurance cover amounts to not less than such minimum level as may be prescribed.
Updated August 2023
What are the penalties for failure to comply with Article 11 of the Accountancy Profession Act dealing with professional indemnity insurance?
Every person who fails to comply with any of the foregoing provisions of this article shall be guilty of an offence and shall be liable on conviction for each offence to a fine (multa) not exceeding six thousand euro (€6,000.00), or to imprisonment for a period not exceeding three months, or to both such fine and imprisonment, and in the case of a continuing offence to an additional fine not exceeding six hundred euro (€600.00) for each day during which the offence continues.
Updated August 2023
The Requirements
Auditors that carry out statutory audits of public interest entities are required by article 18(1) of the Accountancy Profession Act, to publish transparency reports at the latest four months after the end of each financial year. That transparency report shall be published on the website of the auditor or audit firm and shall remain available on that website for at least five years from the day of its publication on the website. If the auditor is employed by an audit firm the obligations under the article shall be incumbent on the audit firm.
Updated August 2023
What should the transparency report include?
The annual transparency report shall include at least the following:
• a description of the legal structure and ownership of the audit firm;
• where the auditor or the audit firm is a member of a network:
• a description of the network and the legal and structural arrangements in the network;
• the name of each auditor operating as a sole practitioner or audit firm that is a member of the network;
• the countries in which each auditor operating as a sole practitioner or audit firm that is a member of the network is qualified as a statutory auditor or has his, her or its registered office, central administration or principal place of business;
• the total turnover achieved by the auditors operating as sole practitioners and audit firms that are members of the network, resulting from the statutory audit of annual and consolidated financial statements.
• a description of the governance structure of the audit firm;
• a description of the internal quality control system of the auditor or of the audit firm and a statement by the administrative or management body on the
• effectiveness of its functioning;
• an indication of when the last quality assurance review referred to in Article 26 of the Audit Regulation was carried out;
• a list of public-interest entities for which the auditor or the audit firm carried out statutory audits during the preceding financial year;
• a statement covering the auditor’s or the audit firm’s independence practices which also confirms that an internal review of independence compliance has been conducted
• a statement on the policy followed by the auditor or the audit firm concerning the continuing education of auditors as referred in Directive 1 Accountancy Profession (Continued Professional Education);
• information concerning the basis for the principals’ remuneration in audit firms;
• a description of the auditor’s or the audit firm’s policy concerning the rotation of key audit partners and staff in accordance with Article 17(7) of the Audit Regulation;
• Where not disclosed in its financial statements within the meaning of article 167(2) of the Companies Act, information about the total turnover of the auditor or the audit firm, divided into the following categories:
• revenues from the statutory audit of annual and consolidated financial statements of public- interest entities and entities belonging to a group of undertakings whose parent undertaking is a public-interest entity;
• revenues from the statutory audit of annual and consolidated financial statements of other entities;
• revenues from permitted non-audit services to entities that are audited by the statutory auditor or the audit firm; and
• revenues from non-audit services to other entities
Updated August 2023
Who must sign the transparency report?
The transparency report shall be signed by the compliance principal.
Updated August 2023
Do third-country auditors and third-country audit entities need to publish an annual transparency report?
If the Board has registered a third-country auditor or third-country audit entity that provides an audit report concerning the financial statements of a company incorporated outside the European Union whose transferable securities are admitted to trading on the regulated market in Malta within the meaning of point 14 of Article 4(1) of Directive 2004/39//EC, except when the company is an issuer exclusively of debt securities admitted to trading on a regulated market in a Member State within the meaning of Article 2(1)(b) of Directive 2004/109/EC, the denomination per unit of which is at least fifty thousand euro or, in the case of debt securities denominated in another currency, equivalent at the date of issue, to at least fifty thousand euro, then yes it must publish on its website an annual transparency report which includes the information set out in Article 18(1) of the Accountancy Profession Act.
Updated August 2023
What is the meaning of a public-interest entity?
Article 2 of the Accountancy Profession Act defines a “public-interest entity” as an entity whose transferable securities are admitted to trading on a regulated market of any Member State within the meaning of point 14 of Article 4(1) of Directive 2004/39/EC, a credit institution as defined in point 1 of Article of Directive 2000/12/Ec of the European Parliament and of the Council of 20 March 2000 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, other than those referred to in Article 2 of that Directive, an insurance undertaking within the meaning of Article 2(1) of Directive 91/674/EEC and such other entities as may be prescribed by the Minister. References to the Directives in this definition shall include any other legislation amending or substituting such Directives.
Updated August 2023
Introduction
In terms of the Accountancy Profession Act (Cap. 386, Laws of Malta), the Accountancy Board (the “Board”) is entrusted with taking measures necessary to protect the public interest and the integrity of the accountancy profession. The Board is aware that a number of entities and individuals offer accounting services without being registered with the Board and accordingly in breach of the Accountancy Profession Act and the regulations and directives issued there under. The Board intends to create more awareness on this matter and to ensure that all entities offering accountancy services are duly registered with the Board. In the event that entities and individuals continue to provide accountancy services without registering with the Board, appropriate remedial action will be taken in terms of the Accountancy Profession Act.
Updated August 2023
Services which may only be provided by a warrant holder
The Accountancy Profession Regulations, 2016 set out the work or services which can only be performed or rendered by individuals holding a warrant. The works and services mentioned in regulation 3(2) of the Accountancy Profession Regulations are the following:
• the issuing of reports on prospective financial information prepared for the promotion of investment in an entity or for the raising of finance;
• the issuing of independent reports on share valuations or valuations of businesses;
• acting as reporting accountants in prospectuses, offering memoranda and other similar documents intended for public subscription;
• the issuing of reports, including reports on a compilation engagement, with respect to interim or annual financial statements of any entity but excluding any reports on financial statements prepared for internal purposes; and
• any other service which may be prescribed by the Minister or by any other law. Should any person be found to act in contravention of the provisions of this regulation shall be guilty of an offence and shall on conviction be liable to a fine (multa) of not more than €6,000.
Updated August 2023
Professional Indemnity Insurance
Article 11(1) of the Accountancy Profession Act requires that every firm formed under article 10 of the Accountancy Profession Act, for so long as they are so formed, and thereafter with respect to anything done or omitted during that time, be covered by an indemnity insurance policy (please refer to the FAQs on PII).
Updated August 2023
If I advertise my firm as providing accounting services as one of the services provided do I need to register with the Accountancy Board?
Yes. If your firm holds itself out to provide any of the works and services mentioned in regulation 3(2) of the Accountancy Profession Regulations, then it must register itself with the Accountancy Board. The firm must meet the criteria set out in Article 10 of the Accountancy Profession Act.
Updated August 2023
I am a warrant holder registered with the Board as a sole practitioner. I also have a firm providing solely book-keeping services.
No. Book-keeping is not a service which is regulated by the Accountancy Profession Act and is not listed in Article 3(2) of the Accountancy Profession Regulations. However, the firm must not advertise that it provides accounting services or in any way imply it provides such services. It may, on the other hand, advertise that it provides book-keeping services.
Updated August 2023
I am a warrant holder registered with the Board as a sole practitioner. I own SP Accounting Services Ltd, which does not provide accounting services. Do I need to register my company with the Board?
Yes. Since your company’s name includes the word ‘Accounting’ you are deemed to hold yourself out to provide accounting services and thus must be registered. The company must meet the criteria set out in Article 10 of the Accountancy Profession Act.
Updated August 2023
I am not a warrant holder but own SP Accounting Services Ltd, which does not provide accounting services. Do I need to register my company with the Board?
Yes. Since your company’s name includes the word ‘Accounting’ you are deemed to hold yourself out to provide accounting services and thus must be registered. However, given that you are not a warrant holder, changes must be made to the ownership structure and the management and administration body of the company to meet the criteria set out in article 10 of the Accountancy Profession Act.
Updated August 2023
The Requirements in respect of the Annual Return
The requirement for warrant holders and firms to fill in and submit an annual return is derived from the Annual Return and Registration Fees Directive 3 of the Accountancy Profession Act. The purpose and scope of the annual return as set out in Section 4 of the above mentioned directive is as follows: (i) enable the Board to maintain a complete and updated register as set out in article 7(4) of the Accountancy Profession Act including
key data and information; (ii) To obtain confirmation that warrant holders and firms are abiding by relevant rules and regulations (e.g. the insurance requirements); (iii) To enable the Board to obtain information relating to the those firms together with a profile of their activities; (iv) To assist the Board or its representatives in the planning of quality assurance reviews. In order for the Board to meet these objectives, it is the responsibility of each warrant holder, practising certificate holder or firm to ensure that they comply with this Directive, including notifying the Board of any change of address or change of circumstances which could have a bearing on the profession of the warrant holder/practising certificate holder/firm concerned.
Updated August 2023
Who is required to fill in and submit the annual return?
The annual return is to be filled in by all warrant holders, practising certificate holders and firms. The annual return shall be in such form as may determined by the Board from time to time and made available on the official website of the Board.
Updated August 2023
By when and to whom do I need to submit my filled in and completed annual return to?
A warrant holder or practising certificate holder or firm is to submit a completed Annual Return for the calendar year ending on 31 December by the 31st January of the following year.
Annual returns not submitted through the Board’s web portal are to refer to the address found on the Annual Return itself and should include a cheque payment of Euro 23.29 to cover the annual registration fee and if applicable the Quality Assurance Regulatory Fee as prescribed in Directive 4 of the APA.
Updated August 2023
Who will have access to the information disclosed by the warrant holder in the annual return?
In exercising its powers and carrying out its duties under this directive, the Board will treat all information received as confidential but may only disclose any information if the Board believes it is appropriate in the following circumstances: a) to individuals appointed by the Board to investigate complaints against warrant holders; b) to individuals who may be appointed by the Board or any other Body delegated by The Board to perform quality assurance reviews for warrant holders engaged in public practice; c) to the Appeals Board; d) as may be required by the Act and any other relevant legislation enacted in Malta.
Updated August 2023
What regulatory penalties could be imposed by the Accountancy Board if the annual return is not submitted on time or is incomplete or materially inaccurate?
`The Board may refer any warrant holder or firm that has failed to submit a completed Annual Return or has submitted an incomplete or materially inaccurate Annual Return, to a disciplinary committee appointed by the Board (hereinafter referred to as the “Disciplinary Committee”). Should the Disciplinary Committee find that any such failure on the part of the warrant holder or firm was not for a just cause, the Board may withdraw the practising certificate or suspend the warrant and/or practising certificate for such time and under such conditions as the Board may deem fit or recommend to the Minister the withdrawal of the warrant of a warrant holder or firm or take any other disciplinary provisions which are within its powers as it deems fit. Any decision taken by the Disciplinary Committee shall be notified by registered mail or by any other form of notification in the gazette or local newspaper, to any person to whom such decision applies and shall be subject to appeal. Without prejudice to the right of the Board under paragraph 18 of this Directive, the Board may impose an administrative fine amounting to not more than €232.94 (two hundred and thirty-two euro and ninety-four cents) per warrant holder or €232.94 (two hundred and thirty-two euro and ninety-four cents) per principal in the case of a firm, in any of the following circumstances: The late submission of the annual return; The submission of an incomplete or material inaccurate Annual Return; And/or The failure to pay the registration fee by the due date.
Updated August 2023
What should be done in the case where it is impossible or impractical for the warrant holder or firm to comply with the Directive?
If it is impossible or impractical for a warrant holder or firm to comply with the requirements of Directive 3, the warrant holder or firms should notify the Board in writing within twenty (20) business days of the circumstances of non-compliance and the proposed action to be undertaken by the warrant holder or firm.
Updated August 2023
Introduction
Legal notice 289 of 2015 was issued on 28th August 2015 with the main objective being of these regulations is to prescribe the general accounting principles that shall be adhered to by small and medium-sized entities.
Updated August 2023
Applicability
This regulation shall apply to small and medium-sized entities:
• "small entities" means entities which on their balance sheet dates do not exceed the limits of at least two of the three following criteria:
• balance sheet total: € 4,000,000;
• total revenue: € 8,000,000;
• average number of employees during the financial year: 50
• "medium-sized entities" means entities which are not small entities and which on their balance sheet dates do not exceed the limits of at least two of the three following criteria:
• balance sheet total: € 20,000,000;
• total revenue: € 40,000,000;
• average number of employees during the financial year: 250.
• "balance sheet total" shall consist of the total value of assets held by an entity, including those that are current and non-current, as defined in the Schedule;
• "total revenue" means the amounts derived from the sale of products and the provision of services after deducting sales rebates and value added tax and other taxes directly linked to revenue; and
• the "average number of employees" shall be determined as follows:
• in relation to whole-time employees, the aggregate number of full weeks worked by all the whole-time employees of the entity during the financial reporting period, divided by the number of full weeks comprised in that financial reporting period, rounded off to the nearest number; and
• in relation to part-time employees, the aggregate number of hours worked by all the part-time employees of the entity during the financial reporting period, divided by the number of full weeks comprised in that financial reporting period and again divided by forty, rounded off to the nearest number.
Updated August 2023
Effective date
An entity shall, for financial reporting periods commencing on or after 1st January 2016, prepare financial statements in accordance with the general accounting principles for small and medium-sized entities set out in the Schedules unless the Board of Directors of a company or, in the case of an entity other than a company, its governing body, has resolved to prepare financial statements in accordance with IFRS as adopted by the EU for that financial reporting period; or the entity does not satisfy the requirements set out in regulation 5 for the applicability of the Schedule: Provided that for financial reporting periods ending on or prior to 31st December 2015, the regulations as were in force prior to the coming into force of these regulations shall continue to apply mutatis mutandis to such entities.
Updated August 2023
Minimum CPE Requirements
All warrant holders are required to comply with CPE requirements, unless a CPE exemption has availed of.
Unless a CPE exemption has been availed of, on an annual basis warrant holders are required to carry out at least 25 hours (of which at least 10 hours must be carried out in those areas qualifying as Core Competencies) of structured CPE activities and 15 hours of unstructured CPE activities.
Updated August 2023
CPE Exemptions
There are a number of situations, for which the Board recognises that warrant holders may be unable to fulfil their CPE obligations such as:
• Maternity leave;
• Serious illness;
• Full-time study;
• Not in employment (neither gainfully employed nor self-employed); and
• Not working in an accountancy related position.
Apart from maternity leave which entitles the warrant holder to a 9 hour reduction in the year of confinement, all other situations entitle the warrant holder from a full exemption from CPE requirements (or on a pro-rata basis for those satisfying the CPE exemption criteria part way through the year).
Updated August 2023
Re-entry Into The Profession Following A CPE Exemption
All warrant holders who have availed of a CPE exemption and have had a change in circumstance (i.e. the full-time study course has been completed and the warrant holder commences work in an accounting related position) are then required to comply with CPE requirements applicable to re-entrants which came into force in 2012.
The diagram below depicts the action which must be taken by such warrant holders before they can return to the profession.
Updated August 2023
What is GDPR?
The Accountancy Board Unit is dedicated to protecting the confidentiality and privacy of the information entrusted to us. We comply with the EU General Data Protection Regulation (GDPR) and the Data Protection Act (Chapter 586 of the Laws of Malta). Please read this Privacy Policy to better understand your rights, what information we collect, how we use and protect it.
Updated August 2023
How do we collect personal data?
Within the scope of Article 6 of the GDPR, the data we collect is necessary for the daily performance of duties of the Accountancy Board. The data is collected for compliance with legal obligations born under:
• The Accountancy Profession Act, CAP. 281;
• S.L. 281.01 (Accountancy Profession Regulations);
• and of the Prevention of Money Laundering Act, CAP. 373 and S.L. 373.01 of 2017.
We collect personal data in the following ways:
• Directly. We obtain personal data directly from individuals who voluntarily complete our online forms, and voluntarily submit other necessary information either via post, by attending meetings, during quality assurance reviews or during visits to our offices.
• Indirectly. We may also obtain personal data indirectly about individuals from a variety of informal sources, such as during verbal or telephone/email discussions with warrant holders, practising certificate holders and compliance principals. This, in order to clarify the documents they would have already submitted.
• Public sources - Personal data may be obtained from public registers, sanction lists, and Internet searches, only if this becomes necessary in cases of alleged irregularities or police investigations.
What categories of personal data do we collect?
We may obtain the following categories of personal data about individuals through their direct interactions with the Accountancy Board and its representatives, or from information provided through:
• Contact details (e.g., name, I.D. Card Number, company name, job title, work and mobile telephone numbers, work and personal email and postal address).
• Professional details (e.g., job and career history, educational background and professional memberships, published articles).
• CCTV on our premises may collect images of visitors. These images, should they be recorded, are automatically overwritten within 30 days.
Why do we need personal data?
• For the issuance of reports related to quality assurance visits. This may include reviewing files for quality assurance purposes, which may involve processing personal data for the relevant undertaking or warrant holder, within the scope of the above-mentioned legislation. The amount of personal data processed is kept to a minimum and within the limitations of what is considered to be fair, transparent, accurately and securely maintained and collected only for auditing purposes within the scope of Article 5(1-2) of the GDPR.
• Processing online forms in relation to, and responding to email communications from individuals or requests for information.
• Complying with legal and regulatory obligations relating to by the Accountancy Profession Act, CAP. 281; the Accountancy Profession Regulations and money laundering legislation, as cited in Point 3.
Do we share personal data with third parties?
We may share personal data with local and EU oversight bodies and approved accountancy bodies as contemplated by the Accountancy Profession Act, CAP. 281 and the Accountancy Profession Regulations, and with regulatory bodies in terms of the Prevention of Money Laundering Act, CAP. 373 and S.L. 373.01, CAP. 281.01. These recipients are also legally bound to safeguard the data we share with them.
Updated August 2023
Do we transfer your personal data outside the EU?
We may be obliged to transfer personal data to third countries in cases of warrant holders or undertakings registered in third countries and about whom, third country oversight bodies may request information., Such transfers would be effected in accordance with Article 5 of the GDPR and SL 234 of 2016, (8-9) particularly. Furthermore, such a transfer would be subject to:
• the basis of an adequacy decision by the European Commission;
• or appropriate safeguards, including but not limited to, Binding Corporate Rules, standard data protection clauses adopted by the Commission, approved code of conduct and approved certification mechanism;
Authorisation from the supervisory authority shall be required if the transfer will be carried out on the basis of:
• contractual clauses binding between data exporter and data importer in the third country;
• provisions to be inserted in administrative arrangements between public bodies.
What about personal data security?
Appropriate technical and organisational safeguards and procedures are in place in order to protect personal data from loss, misuse, alteration or destruction. Our aim is to ensure that access to your personal data is limited only to authorised persons, who are required to maintain the confidentiality of such information. Your rights You are entitled to know, free of charge, what type of information the Accountancy Board holds and processes about you and why, who has access to it, how it is held and kept up to date, for how long it is kept, and what the Unit is doing to comply with data protection legislation. The GDPR establishes a formal procedure for dealing with data subject access requests. All data subjects have the right to access any personal information kept about them by the Accountancy Board, either on computer or in manual files. Requests for access to personal information by data subjects are to be made in writing and sent to the Head, Quality Assurance Unit of the Quality Assurance Unit. Your identification details such as ID number, name and surname have to be submitted with the request for access. In case we encounter identification difficulties, you may be required to present an identification document. The Accountancy Board aims to comply as quickly as possible with requests for access to personal information and will ensure that it is provided within a reasonable timeframe and in any case not later than one month from receipt of request, unless there is good reason for delay. When a request for access cannot be met within a reasonable time, the reason will be explained in writing to the data subject making the request. Should there be any data breaches, the data subject will be informed accordingly. All data subjects have the right to request that their information is not used or is amended if it results to be incorrect. Data subjects may also request that their data is erased. These rights may be restricted, if applicable, as per Data Protection Legislation. In case you are not satisfied with the outcome of your access request, you may refer a complaint to the Information and Data Protection Commissioner, whose contact details are provided below. We may need to request specific information from you to help us confirm your identity and ensure your right to access the information or to exercise any of your other rights. This helps us to ensure that personal data is not disclosed to any person who is unauthorised to receive it. If you have access to parts of our website, you remain responsible for keeping your user ID and password confidential. Please be aware that the transmission of data via the Internet can never be entirely secure. Whilst we do our best to try to protect your personal data, we cannot guarantee the security of your data transmission to our site.
How long do we retain personal data?
We retain personal data in order to provide our services, maintain contact with firms, warrant holders and practising certificate holders and to adhere to applicable laws. Unless a different time frame, resulting from a specific legal or regulatory requirement, applies, our retention policy for audit documents, and the personal data these may contain, is for the lifetime duration of warrant holders, practising certificate holders and firms. This Privacy Policy is reviewed regularly and was last updated in August 2023. The Data Protection Officer may be contacted on the email [email protected] or by telephone 25998213.
Where can you contact us in respect to GDPR queries?
Accountancy Board - Chairman
The Accountancy Board may be contacted at:
The Accountancy Board,
Ministry for Finance,
Maison Demandols,
South Street, Valletta, VLT 2000
Telephone: 25998465
Email: [email protected]
The Information and Data Protection Commissioner
The Information and Data Protection Commissioner may be contacted at:
Level 2, Airways House,
High Street,
Sliema SLM 1549
Telephone: 23287100
Email: [email protected]