Services - Audit & Assurance

Audit & Assurance

Investigations & Special Assignments

Due diligence

Internal Audit Services

1.1 Audit Overview
Audit and assurance services form a major part of the work we do for our clients on a continuing basis . FACT Audit’s audit practices are aimed at helping organisations achieve their objectives and succeed in the economy through measuring performance, assessing risks, and leveraging knowledge. Our computerised audit approach enables us to deliver seamless global accounting and auditing services.

FACT Audit provides clients with professional advice and assurance on their controls and accounting systems. We understand our clients' operations, their industry and the issues they face, and this enables us to provide them with such relevant advice. W e can help to improve our clients’ financial control and regulatory reporting system.

FACT Audit’s audit methodology has been developed to facilitate our ability to form an opinion in accordance with the requirements of the International Standards on Auditing. In every case, our audit is underpinned by our deep industry knowledge, wide experience and global network of skilled professionals.

Finally, the Maltese Accountancy Board in conjunction with the Malta Financial Services Authority is finalising the transposition work of the Directive on the Statutory Audit which has to be completed by June 2008. Thus, Malta’s already sophisticated company and audit laws remain constantly in line with EU laws.

1.2 Statutory Audits
The audit of company financial statements is required by the Companies Act 1995 in Malta and is the cornerstone of Audit services. For organisations that require an audit for statutory or regulatory reasons associated with the filing of their annual and periodic financial statements, FACT Audit can provide high quality audit services.

However, whilst an independent audit is the foundation for decision-making, the sudden corporate collapses meant that audits cannot be perceived as being routine, annual exercises merely required by statute. This has led to more scrutiny and skepticism of a company’s financial statements than ever before. The expectations on the audit report have heightened, and the reliance put on your financial statements by your stakeholders translates into higher risks. In fact, stakeholders are seeking more assurance in relation to corporate governance and reporting and they expect greater reliability, more oversight and clear evidence of internal controls.

Meeting stakeholder expectations begins with the completeness and accuracy of information contained in a company’s financial statements.

1.3 Uniform Financial Reporting
But as every cloud has a silver lining, stakeholders are now able to understand and compare financial statements from companies around the world. In fact, many companies must now prepare their financial statements in accordance with International Financial Reporting Standards (IFRSs) and this revolution will have a significant impact on financial statements, directly affecting the outcomes of valuation metrics that analysts use to measure and evaluate company performance.

As from 2005, all EU listed companies must apply International Financial Reporting Standards (IFRS) in their financial statements. This means companies will have to have a set of comparative accounts in 2004, so it is vital that they have a structured action plan now to help them implement an effective and efficient conversion.

This did not come about without difficulty. Getting through the IFRS conversion process and initial reporting period has proved to be a great challenge. Conversion to IFRSs is much more than a technical accounting issue. IFRSs may significantly affect any number of a company’s day-to-day operations or even impact the reported profitability of the business itself. Ultimately early adoption and communications may assist competitive advantage. To help businesses meet these many challenges, FACT Audit has developed a structured approach to change.

FACT Audit has inevitably gained vast experience in the application of IFRSs in Malta because these standards have been the basis upon which statutory financial statements of all limited liability companies registered in Malta were prepared for many years. We have a proven track record in helping companies successfully complete the transition to new or revised accounting standards. Reflecting the complexity of the task at hand, we have a range of specialists to assist companies in the adoption of new or revised standards.

1.4 Regulatory compliance and reporting
Regulatory compliance and reporting needs to be viewed as a natural extension of the governance duties shouldered by top management and corporate boards. Moreover, only good governance can ensure that compliance is aligned with the company’s business objectives and risk management strategies and is thereby adding real value and not just costs to the organisation. Ultimately, the goal is to ensure that the spirit of compliance, as well as the letter of the law, is embraced in every corner of the enterprise.

For all organisations engaged in activities that are regulated, FACT Audit provides support, advice, and assurance to help you manage your regulatory risks. In an ever-changing regulatory environment, we can help ensure that you identify, manage, and control any exiting and future regulatory risks. A proactive rather than a monitoring approach to regulation is now a full time strategic necessity.

We can also assist in the evaluation of new regulations on your business model, provide advice with getting your business authorised by a regulator or provide support in dealing with regulatory enforcement actions and remediation exercises.

1.5 Value added audits
FACT Audit audit service does not end with the financial statement audit. Our statutory audit besides providing assurance on the truth and fairness of an organisation’s financial information would also provide advice on controls and processing system weaknesses and confirmation of accounting treatments with respect to complex transactions.

Clients call on our knowledge and experience to analyse audit findings and deliver a wide range of value added services. We thus provide other assurance-based services such as interim reviews and other agreed-upon procedures. Managing risk appropriately is a key to business success. FACT Audit professionals are also ready to provide co-sourcing as well as outsourcing internal audit frameworks and are prepared to leverage the knowledge imbedded within FACT Audit’s proprietary tools to assess controls over the risks that are critical to your success.