Choosing an Auditor in Malta: A Director’s Guide for 2026

By the EGM Assurance Editorial Team — a team of ACCA-qualified auditors and tax advisors registered with the Accountancy Board of Malta. All our articles are reviewed for technical accuracy by a senior partner before publication.

By the EGM Assurance Editorial Team · Last reviewed April 2026 · 12 min read

Choosing an auditor is one of the most consequential decisions a Maltese company’s board makes. The auditor signs the report relied on by banks, regulators, shareholders, lenders, the MTCA and prospective acquirers. The wrong choice creates costly switching, audit qualifications that flag concerns to lenders, and in extreme cases reputational damage. The right choice is a long-term professional relationship that protects the company’s good standing year after year.

This guide is for directors and finance managers selecting an audit firm in Malta — whether for the first time or replacing an existing auditor. It covers the credentials and registrations required by Maltese law, how to assess sector competence, the differences between Big Four and mid-tier firms, fee benchmarking, independence requirements, and the specific questions to ask any firm before appointing. It reflects the position at April 2026.

1. The legal framework: who can audit a Maltese company

Not every accountant can audit a Maltese company. The Accountancy Profession Act (Cap. 281) restricts statutory audit work to specifically authorised individuals and firms. Three credentials must be in place:

Certified Public Auditor (CPA Auditor)

To act as auditor of a Maltese company, an individual must hold a current warrant as a Certified Public Auditor issued by the Accountancy Board of Malta. CPA Auditor status is awarded only to qualified accountants who have completed the additional audit-specific training and experience requirements set out in the Accountancy Profession Act. A holder of an unrestricted CPA warrant (without audit authorisation) is not authorised to sign an audit opinion.

Audit firm registration

The audit firm itself must be registered with the Accountancy Board as an audit firm. The firm registry is publicly searchable on the Accountancy Board’s website. Registration confirms that the firm has the required professional indemnity insurance, governance arrangements, and audit quality control system as required by the Quality Assurance Oversight Committee (QAOC).

Practising certificate

Both individual auditors and audit firms must hold current practising certificates and be in good standing with the Malta Institute of Accountants (MIA) and the Accountancy Board. Practising certificates are renewed annually and require continuing professional development (CPD) compliance.

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2. What matters when choosing an audit firm

Maltese audit firms come in many forms — from international networks with offices in Malta, to mid-sized independent firms, to specialist boutiques, to smaller practices and individual practitioners. Every firm registered with the Accountancy Board operates to the same International Standards on Auditing (ISAs) and is subject to the same regulatory oversight. The size or scale of a firm does not determine the quality of the audit it delivers. What matters is the fit between the firm’s capabilities, the company’s needs, and the working relationship between them.

The relevant questions when comparing firms are not about brand or scale, but about specific capabilities and how they align with your engagement:

• Technical capability — does the firm have the audit experience and expertise relevant to your company’s sector, size and complexity?

• Sector knowledge — has the firm worked with companies similar to yours? Have they encountered the typical issues your industry faces?

• Engagement structure — who specifically will work on your audit? What is the partner’s involvement? What is the team’s sector background?

• Communication style — how responsive is the firm during the proposal phase? Will you have direct access to senior staff during the engagement?

• Independence and ethics — does the firm have any prior or parallel relationship with the company that would compromise audit independence?

• Continuity — can the firm commit to a multi-year engagement? Are succession arrangements in place if the partner moves on?

• Fee structure — is the proposed fee aligned to the work required, with a transparent engagement letter?

Each of these factors can be satisfied by firms of any size. A small practice with deep sector expertise may be a better fit for a specialist company than a much larger firm with broader but less specific experience. Equally, a larger firm may be the right choice for a complex group requiring coordinated audit work across multiple subsidiaries. The right answer depends on the specific engagement — not on a default preference for any tier of firm.

3. Sector experience: the most underweighted factor

Within any tier, the firm’s experience in your specific sector is one of the strongest predictors of audit quality and efficiency. A firm that has audited 30 iGaming companies will identify revenue recognition issues, regulatory reporting requirements and player liability accounting faster and more accurately than a firm encountering its first iGaming client. The same applies to financial services, shipping, real estate, insurance, hospitality and any other regulated or technical sector.

Sector experience matters in three specific ways:

• Audit risk identification: an experienced sector auditor knows what to look for. Sector-specific risks (revenue recognition, regulatory capital, asset valuation) get appropriate audit attention.

• Efficiency: an auditor who already understands your industry asks better questions, requests more relevant supporting documents, and completes the audit faster — with less drag on your team.

• Regulatory familiarity: where the company is regulated, the auditor must liaise with the regulator (MFSA, MGA, Transport Malta). A firm with existing regulatory relationships is materially more efficient at this.

Ask any firm you are considering for a list of clients (or anonymised case examples) in your sector, and the partner-level experience of staff who would lead the engagement. A firm that cannot point to comparable engagements is taking your audit on for the learning experience — and you will pay for that learning in fees and timeline.

4. Independence: a fundamental requirement, often misunderstood

Independence is the cornerstone of audit quality and is required by both ISA standards and the Accountancy Profession Act. An auditor who is not independent of the client cannot provide a credible audit opinion. The most common independence issues encountered in the Maltese market are:

Self-review threat

A firm cannot audit financial statements that the same firm prepared. This is the single most common independence breach. If your accountant prepared your accounts — whether through a formal bookkeeping engagement or through informal assistance — they cannot then audit those same accounts. The accounts and audit functions must be separated, either between two firms or between strictly segregated teams within the same firm with effective Chinese walls.

Self-interest threat

Where the auditor has a financial interest in the client — such as a shareholding, a loan to or from the client, or fees that represent more than a small percentage of total firm revenue — independence is threatened. For SME audits, the most relevant practical issue is fee dependence: where one client represents a significant share of the firm’s revenue, professional standards require additional safeguards.

Familiarity threat

A long, close relationship with the client management can erode the auditor’s scepticism. Under the EU Audit Regulation (537/2014), the engagement partner on a public interest entity audit must rotate every 7 years, followed by a 3-year cooling-off period before the same partner can return to the engagement. For non-PIE engagements, partner rotation is recommended as a matter of best practice for long-standing engagements but is not statutorily mandated.

Advocacy threat

Where the auditor advocates for the client (for example, in a tax dispute or an MFSA review), the auditor cannot then objectively audit the related transactions. Independence requires that the auditor remains a third-party reviewer rather than an advocate for the client’s position.

5. Practical questions to ask before appointing

The proposal stage is the right moment to ask the questions that matter. The following list covers the most useful pre-engagement questions — the answers reveal both technical competence and how the firm will work with you operationally:

Credentials and standing

• Is your firm currently registered with the Accountancy Board as an audit firm? What is the registration number?

• Who would be the engagement partner? How long have they held a CPA Auditor warrant? What is their sector experience?

• Does the firm have professional indemnity insurance? What is the cover limit?

• When was the firm’s last QAOC quality assurance review, and were any deficiencies identified?

Engagement scope and team

• Who exactly will work on the audit — partner, manager, senior, juniors? How much partner time will the engagement receive?

• Will the same team return year on year, or do you rotate staff?

• Where is fieldwork conducted — our office or yours? Remote or in person?

• How many similar engagements has the proposed team completed?

Timeline and process

• What is the typical timeline from records handover to issued audit report?

• When during the year do you have capacity to start fieldwork?

• How do you handle queries during the audit — dedicated point of contact, response SLAs?

• What documentation should we have ready before fieldwork begins?

Fees and engagement letter

• What is the proposed fee, and what is included? What is excluded?

• Is the fee fixed or time-based? What are the hourly rates for out-of-scope work?

• What payment terms apply? Upfront percentage and balance schedule?

• Will you provide a formal engagement letter under ISA 210?

Independence and ethics

• Has your firm previously provided non-audit services to our company or its directors? If so, what?

• Do you have any other relationship with our shareholders, directors, or related parties?

• How do you manage independence on multi-service engagements?

6. Red flags to walk away from

The proposal stage also reveals firms you should not engage. Specific red flags that should end the conversation:

• The firm is not registered on the Accountancy Board’s public audit registry. This is a hard stop — there is no audit engagement to discuss.

• The proposal does not include an engagement letter, or the firm offers to start work without one. ISA 210 requires a written engagement letter for every audit.

• The firm proposes to do both your bookkeeping and your audit on the same engagement, without any segregation safeguards.

• The fee quoted does not appear to align with the proposed scope of work. A fee that seems too low to support proper audit procedures, or that is unclear about what is and is not included, deserves a direct conversation with the firm before engagement.

• The firm cannot give a clear answer on partner involvement or sector experience. A vague response generally indicates a vague engagement.

• The firm is unwilling to provide references from comparable Maltese clients.

• Communications during the proposal phase are slow, unclear or repeatedly miss deadlines. This is the firm at its most attentive — it does not get better after appointment.

• The firm pressures you toward a quick decision or refuses to discuss alternatives. A confident firm is comfortable being compared with others.

7. Switching auditors: the practical process

Replacing an existing auditor is a normal commercial decision, but it must be handled correctly. The Companies Act and professional standards impose specific procedures:

• The outgoing auditor must be formally notified of the company’s decision and must be given an opportunity to make representations.

• The incoming auditor (the new firm) must contact the outgoing auditor before accepting the engagement, to enquire whether there are any reasons (professional or commercial) why they should not accept the appointment. This is a professional courtesy required under ethics standards.

• The change is approved by an ordinary resolution of the shareholders. This is typically dealt with at the AGM at which the new auditors are appointed.

• Notification of the change is filed with the MBR within the prescribed timeframe.

• The incoming auditor will need access to prior-year working papers from the outgoing auditor, which professional standards require the outgoing firm to provide.

The first year with a new auditor is often more expensive than subsequent years because the new firm must obtain comfort on prior-year comparatives. This is normal and should be reflected in the new firm’s quote. After the first year, fees should normalise.

8. Frequently asked questions

How do I check if an audit firm is registered in Malta?

The Accountancy Board of Malta maintains a public registry of authorised audit firms on its website. Search by firm name to confirm current registration status, registration number and authorisation scope. Always confirm registration before engaging — it takes two minutes and prevents a fundamental compliance failure.

Can I have one firm do my accounts and another do my audit?

Yes, and in practice this is increasingly common in Malta. Separating the accounts preparation function (handled by your bookkeeper or a separate accounting firm) from the audit function (handled by an audit firm with no involvement in preparing the accounts) preserves audit independence cleanly. Many companies use this structure to access specialised audit expertise while keeping their day-to-day accounting with a smaller local firm.

How do I know which firm is the right size for my audit?

“Right size” is determined by capability fit rather than firm size. Match the firm’s technical capability and sector experience to your engagement’s needs. A small specialist practice can be the right fit for a niche specialist company; a larger firm may be the right fit for a multi-jurisdictional group. The most useful test is whether the firm has performed comparable engagements before — and whether the team it proposes to assign to your audit has appropriate experience for your sector and structure.

How long should I stay with the same auditor?

There is no statutory rotation requirement for non-PIE companies. For PIEs, EU Audit Regulation 537/2014 requires audit firm rotation every 10 years. The maximum tenure can be extended to 20 years where the engagement is re-tendered through a public selection process, or to 24 years where a joint audit is appointed. For non-PIE companies, there is no statutory rotation requirement and the practical question is whether the relationship continues to deliver value. A long, stable relationship with a single firm is generally healthy — it allows the firm to develop deep knowledge of your business and to identify issues efficiently. However, if the relationship becomes complacent, or the firm’s service deteriorates, switching is appropriate.

Do auditors work on a fixed fee or hourly basis?

Most Maltese audit engagements are quoted as a fixed fee for the standard scope, with hourly rates for additional out-of-scope work. The engagement letter should specify both the fixed fee and the hourly rates, and clearly delineate what is in and out of scope. Pure hourly billing for an audit is unusual in the SME market and tends to favour the firm rather than the client.

How long does it take to onboard a new auditor?

Onboarding typically takes 4–6 weeks from initial engagement letter to fieldwork ready: independence checks, signed engagement letter, request for prior-year working papers, planning meetings, agreement of timeline, and exchange of supporting documentation. For a tight year-end timeline, contact prospective firms at least 3 months before the planned audit start date.

Should I choose an independent Maltese firm or a firm that’s part of an international network?

Both can deliver quality audits in Malta. Firms that are part of international networks bring access to global infrastructure and consistency where the audit involves multiple jurisdictions. Independent Maltese firms can offer deeper Malta-specific knowledge and closer client relationships. Both types of firm operate to the same International Standards on Auditing and are subject to the same Accountancy Board oversight — the assurance level delivered is the same. The choice depends on your specific needs: a multi-jurisdictional engagement may benefit from network capability; a Malta-focused engagement may be better served by a local firm with deep market knowledge.

What questions should I ask former clients of the audit firm?

Useful reference questions: How responsive was the partner during the engagement? Did the firm meet its agreed timeline? Were there any out-of-scope fee surprises? How did the firm handle queries from your bank or regulators? Would you re-engage them? A reluctant or vague reference is more telling than a glowing one — honest references about minor issues tend to indicate genuine relationships rather than rehearsed praise.

Related guides from EGM Assurance

• Statutory Audit in Malta: 2026 Guide for SMEs

• How Much Does an Audit Cost in Malta? 2026 Pricing Guide

• Audit Preparation Checklist for Malta Companies

Authoritative references

• Accountancy Profession Act (Cap. 281)

• Accountancy Board of Malta — audit firm registry

• Malta Institute of Accountants (MIA)

• International Standards on Auditing (ISA 210, ISA 220) — IAASB

• EU Audit Regulation (Regulation 537/2014) — PIE audit firm and partner rotation

This article is prepared by EGM Assurance for general informational purposes and reflects the legal and professional position in Malta as at April 2026. It does not constitute legal, tax or professional advice. Always confirm current obligations with a qualified professional before acting.