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Forensic Accounting Practices Gain Momentum on the Island

Malta has long been familiar with fraud and financial irregularities, but a recent study highlights the potential benefits of forensic accounting methods in addressing these issues.

The Study’s Objective

The research, conducted by a student at the University of Malta’s Faculty of Economics, Management and Accountancy, aimed to investigate the applicability of foreign forensic accounting practices within the Maltese environment. The study analyzed the views and needs of senior auditors, the Malta Association of Credit Management, the Financial Intelligence Analysis Unit, and lawyers, as well as examined a number of Maltese environmental characteristics that could provide barriers to the introduction of forensic accounting.

The Benefits of Forensic Accounting

According to experts, forensic accounting is the application of financial skills and an investigative mentality to unresolved issues, conducted within the context of the rules of evidence. Respondents emphasized the benefits of applying forensic accounting methods in detecting and combating fraud. The study found that Malta already has specialized and trained individuals in the field of forensic accounting, who assist and participate in investigations abroad.

Challenges to Adoption

However, despite having the necessary resources and knowledge, these experts are not being fully utilized, leaving room for improvement. Environmental characteristics, such as a lack of recognition and demand for forensic accounting services, were identified as potential barriers to its adoption. The research concluded that more time will be needed for forensic accounting to become a recognized and demanded profession in Malta.

Conclusion

The findings of the study suggest that forensic accounting practices have the potential to significantly aid in discovering fraud and dealing with it more efficiently and effectively in Malta. As the country continues to grapple with financial irregularities, the application of these methods could prove invaluable in uncovering and preventing fraudulent activities.