Malta

As a Member State of the European Union (EU), Malta is subject to the accounting, auditing, and financial reporting requirements established in EU regulations and directives, as transposed into national law. The principal legislative framework is set out in the Companies Act (Chapter 386 of the Laws of Malta) and the Accountancy Profession Act (Chapter 281 of the Laws of Malta). These laws establish the requirements for the preparation of financial statements, statutory audits, and the application of accounting and auditing standards in the jurisdiction.

With respect to financial reporting, International Financial Reporting Standards (IFRS) Accounting Standards as adopted by the EU are required for the consolidated financial statements of all companies whose debt or equity securities trade in a regulated market. In Malta, IFRS Accounting Standards as adopted by the EU are also required in the separate financial statements of listed companies and in both the consolidated and separate financial statements of banks, insurance companies, certain other supervised financial institutions, and larger companies deemed significant in the local economy.

These larger companies are those meeting at least one of the following criteria: total assets exceeding €17.5 million, revenue exceeding €35 million, an average of more than 250 employees, or where a shareholder holding 20 percent or more of the outstanding shares requests the use of full IFRS Accounting Standards as adopted by the EU. Other companies may apply IFRS Accounting Standards as adopted by the EU on a voluntary basis.

Entities that are not required to apply full IFRS Accounting Standards may instead apply the General Accounting Principles for Small and Medium-Sized Entities (GAPSME), established under the relevant regulations issued pursuant to the Accountancy Profession Act. GAPSME forms part of Malta’s differential reporting framework for smaller entities.

With respect to auditing, the Accountancy Profession Act provides the legal basis for the regulation of the audit profession and for the adoption of auditing requirements in line with the EU statutory audit framework, including reforms introduced through Directive 2014/56/EU and Regulation (EU) No 537/2014. Statutory audits may only be conducted by individuals and firms holding the relevant warrant or practicing certificate issued in accordance with the Act.

The Companies Act requires the audit of company financial statements except where exemptions apply. Malta applies the International Standards on Auditing (ISA) for statutory audits, and the Accountancy Board exercises regulatory responsibility in this area.

Additionally, entities operating in regulated sectors such as banking, financial services, and insurance are subject to sector-specific legal and regulatory requirements issued under the relevant legislation and overseen by the Malta Financial Services Authority (MFSA).

Professional accountants in Malta are regulated at the state level by the Accountancy Board, established under the Accountancy Profession Act (Chapter 281 of the Laws of Malta). Individuals authorized to practise the profession are referred to in legislation as warrant holders. In addition to state regulation, professional accountants may voluntarily become members of the Malta Institute of Accountants (MIA) and, in doing so, become subject to the Institute’s membership requirements, ethical requirements, and disciplinary procedures.

Under the Accountancy Profession Act, the Accountancy Board is the competent authority responsible for regulating the profession. Its responsibilities include advising the Minister responsible for finance on the issuance of Certified Public Accountant (CPA) warrants, issuing practising certificates in auditing, registering accountancy and audit firms, maintaining public registers of warrant holders and firms, operating the quality assurance review system, establishing continuing professional education requirements, issuing ethical requirements for warrant holders, and carrying out investigative and disciplinary procedures, including sanctions, suspensions, and revocations where necessary.

To practise as an accountant in Malta, an individual must hold a CPA warrant issued by the Minister on the advice of the Accountancy Board. The minimum entry requirements are established by the Board pursuant to the Act and include an approved academic or professional qualification together with the prescribed practical experience requirements. In practice, recognized pathways include the University of Malta Master in Accountancy, as well as qualifications recognized by the Board as equivalent, including routes through the Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in England and Wales (ICAEW). Candidates are also required to complete three years of relevant practical experience.

Individuals wishing to offer statutory audit services must additionally obtain a practising certificate in auditing from the Accountancy Board. In addition to holding a CPA warrant, applicants must demonstrate advanced qualifications in auditing and complete the equivalent of three years of full-time practical training in auditing financial statements, at least two-thirds of which must be completed with an approved auditor in a Member State of the European Union, with at least eighteen months obtained after completion of the relevant academic qualification.

The MIA is the national professional accountancy organization and operates on a voluntary membership basis. It supports the profession through continuing professional education, technical guidance, and member services. Members of the MIA are additionally subject to the Institute’s rules, ethical requirements, and investigation and discipline procedures.

Auditors in Malta are subject to independent public oversight under the Accountancy Profession Act (Chapter 281 of the Laws of Malta). The Accountancy Board, established in 1979, serves as the competent authority responsible for the regulation and oversight of the audit profession in Malta. The Board regulates auditors and audit firms, issues practising certificates in auditing, maintains public registers, conducts quality assurance reviews, establishes continuing professional education requirements, issues ethical requirements for warrant holders, and carries out investigative and disciplinary procedures.

In line with the requirements of the European Union statutory audit framework, including Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014, the Accountancy Board exercises public oversight over statutory auditors and audit firms. The Board operates through its Quality Assurance Unit, which carries out inspections and practice reviews of auditors and audit firms, including those performing statutory audits of public interest entities. The oversight framework includes the use of approved external reviewers and periodic inspection cycles based on risk and public interest considerations.

The Accountancy Board is a member of the International Forum of Independent Audit Regulators (IFIAR), reflecting its role as Malta’s public audit oversight authority and its participation in international regulatory cooperation.

The Malta Institute of Accountants (MIA), as the national professional accountancy organization operating on a voluntary membership basis, works in close cooperation with the Accountancy Board by supporting professional development, technical guidance, and continuing professional education for the profession. Members of the MIA are additionally subject to the Institute’s ethical requirements and disciplinary procedures.

The Malta Institute of Accountants

The Malta Institute of Accountants (MIA) was established in 1942 and is the national professional accountancy organization in Malta. It operates on a voluntary membership basis and currently represents over 4,000 accountants and finance professionals, providing professional guidance, technical support, advocacy, and continuing professional education to the profession in Malta.

The MIA supports its members through technical committees, professional development programs, publications, conferences, and updates on international and national developments affecting the profession. Members of the Institute are subject to its membership rules, ethical requirements, and investigation and discipline procedures.

The Institute works closely with the Accountancy Board, the statutory regulator established under the Accountancy Profession Act, particularly in areas relating to continuing professional education, professional standards, and the development of the profession.

In addition to being a founding Member of the International Federation of Accountants (IFAC), the MIA is also a member of Accountancy Europe.

Under Directive 4 on Quality Assurance issued pursuant to the Accountancy Profession Act, the Accountancy Board is responsible for establishing and maintaining an effective quality assurance review system for statutory auditors and audit firms. The Board is required to carry out quality assurance reviews on a risk basis at least every three years for statutory auditors and audit firms carrying out statutory audits of public-interest entities (PIEs) and at least every six years for all others.

The quality assurance system is organized through the Quality Assurance Unit (QAU), which acts on behalf of the Accountancy Board in implementing and supervising the review process. The Board has also established a Quality Assurance Oversight Sub-Committee, which reports directly to the Board and reviews quality assurance visit reports before their final approval. Public reporting by the Accountancy Board indicates that the system has been operational since 2007.

Directive 4 requires the quality assurance system to be independent of the reviewed statutory auditors and audit firms. It also establishes qualification and independence requirements for inspectors, including relevant professional education, audit and financial reporting experience, specific training in quality assurance reviews, conflict of interest safeguards, and cooling-off requirements. The Board may also appoint external reviewers and experts where needed, and the funding arrangements described by the Board are intended to protect the Quality Assurance Unit from undue influence.

With effect from 15 December 2022, ISQM 1 and ISQM 2 replaced International Standard on Quality Control 1 (ISQC 1) as the applicable quality management standards. The Accountancy Board has issued implementation guidance on ISQM 1 and reported that firms and sole practitioners were required to transition from ISQC 1 to the new quality management framework.

Based on the legal framework and publicly available information from the Accountancy Board, the quality assurance review system is operational for all statutory auditors and audit firms and appears to incorporate the main elements of Statement of Membership Obligation 1 (SMO 1).

Current Status: Adopted

Under the Accountancy Profession Act (Chapter 281 of the Laws of Malta), the initial and continuing professional development requirements for professional accountants are established at the jurisdictional level by the Accountancy Board. The legal framework sets requirements for academic qualifications, practical experience, professional competence, and the issuance of the Certified Public Accountant (CPA) warrant. Candidates must complete an approved academic or professional qualification and a minimum of three years of relevant practical experience before being eligible for a warrant.

Initial professional development is delivered through recognized pathways, including the University of Malta, the Malta Institute of Accountants (MIA) / Association of Chartered Certified Accountants (ACCA) route, and other qualifications recognized by the Accountancy Board as equivalent. The framework therefore incorporates requirements relating to entry, education, professional competence, assessment, and practical experience.

For continuing professional development, the Accountancy Board has established mandatory continuing professional education (CPE) requirements through Directive 1. All warrant holders are required to complete at least 25 hours of structured CPE, including a minimum of 10 hours in core competencies, and 15 hours of unstructured CPE annually, unless exempt. These requirements are monitored through annual declarations and annual return submissions.

The MIA, as the approved accountancy body, supports implementation through mandatory CPE requirements for its members and by organizing accredited training programs, seminars, conferences, and technical discussion forums. The accreditation of CPE activities has been delegated by the Accountancy Board to the MIA.

While the continuing professional development requirements appear broadly aligned with IES 7 and IES 8, and the jurisdiction clearly establishes education and practical experience requirements, the overall extent to which all current International Education Standards (IES) in effect as of the time of the assessment are demonstrably adopted for all aspiring and professional accountants remains to be fully evidenced.

Current Status: Partially Adopted

Under the Companies Act (Chapter 386 of the Laws of Malta) and the Accountancy Profession (Accounting and Auditing Standards) Regulations, statutory audits in Malta are required to be conducted in accordance with the International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB). These requirements apply to all statutory audits performed by individuals and firms holding a practising certificate in auditing issued by the Accountancy Board.

The Accountancy Board, established under the Accountancy Profession Act (Chapter 281 of the Laws of Malta), is the competent authority responsible for the regulation and oversight of statutory auditors and audit firms in Malta. The Board’s regulatory framework continues to require the application of ISA as issued by the IAASB.

Based on the current legal and regulatory framework, Malta applies ISA as issued by the IAASB and therefore the 2025 edition of the IAASB Handbook is considered to be in use at the time of the assessment. Accordingly, the adoption status remains Adopted.

With respect to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), while the standard has been communicated to the profession through technical updates and professional guidance, no formal jurisdiction-level adoption by the Accountancy Board or incorporation into Maltese legislation was identified as of the time of the assessment. This does not affect the overall adoption rating, as full ISA remain adopted and mandatory for all statutory audits.

Current Status: Adopted

Under the Accountancy Profession Act (Chapter 281 of the Laws of Malta), the Accountancy Board is responsible for establishing ethical requirements for all professional accountants holding a warrant in Malta. To this effect, the Board issues the Code of Ethics for Warrant Holders, which is mandatory for all warrant holders and audit practitioners in the jurisdiction.

The Code currently in force at the jurisdiction level is the 2016 Code of Ethics for Warrant Holders, issued by the Accountancy Board through Directive 2. The Directive states that the Code is based on the 2009 International Ethics Standards Board for Accountants (IESBA) Code of Ethics, together with amendments to reflect additional requirements arising from the European Union statutory audit framework.

The Malta Institute of Accountants (MIA), as the national professional accountancy organization operating on a voluntary membership basis, requires its members to comply with the ethical requirements established by the Accountancy Board and applies these requirements through its membership framework and disciplinary procedures.

No evidence was identified that the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the IESBA in its 2018 or later editions, including the 2025 Handbook, has been formally adopted in its entirety at the jurisdiction level. Accordingly, as the ethical requirements currently in force are based on a pre-2018 version of the Code, the adoption status is assessed as Not Adopted in line with the 2026 adoption definitions.

Current Status: Not Adopted

Public sector accounting in Malta is the responsibility of the Government, led by the Ministry for Finance and the Treasury Department. Malta has undertaken a phased public sector accounting reform program aimed at transitioning to accrual accounting based on the International Public Sector Accounting Standards (IPSAS).

The Treasury Department has developed and published IPSAS as adopted by the Maltese Government, which constitute national public sector accounting standards with direct reference to IPSAS and include modifications to reflect the local legal and administrative environment.

Official sources indicate that Malta has not yet completed full implementation of accrual-based IPSAS across all public sector entities. The National Audit Office has reported that, while the Government’s financial management systems support the transition, financial reporting continues to be prepared on a cash basis pending the full legal and operational implementation of the accrual framework.

Accordingly, Malta has adopted accrual-basis national standards with reference to IPSAS, and implementation remains ongoing across the public sector. In line with the 2026 adoption definitions, the status is assessed as Partially Adopted.

Current Status: Partially Adopted

Under the Accountancy Profession Act (Chapter 281 of the Laws of Malta), the Accountancy Board is responsible for dealing, through disciplinary committees appointed under the Act, with cases of professional misconduct and other disciplinary proceedings in respect of Certified Public Accountant (CPA) warrant holders and holders of a practising certificate, including cases that may lead to the suspension or withdrawal of warrants or practising certificates. The Board also maintains public registers that include sanctions, defaults, suspensions, revocations, fines, reprimands, and other measures imposed on warrant holders, holders of a practising certificate, audit firms, and accountancy firms.

The legal and regulatory framework provides for disciplinary committees and formal procedures for disciplinary proceedings. Public information issued by the Accountancy Board indicates that disciplinary committees are appointed in line with article 7(16) of the Act, and that disciplinary proceedings are used in practice in respect of warrant holders and firms. The framework also provides for publication of sanctions and related measures, which supports transparency.

The Malta Institute of Accountants (MIA), as a voluntary professional accountancy organization, separately maintains disciplinary arrangements for its members under its Statute and Bye-Laws, including Bye-Law 3 on Disciplinary Proceedings. Accordingly, MIA members are subject to the Institute’s disciplinary procedures in addition to any jurisdiction-level processes applicable to warrant holders.

In addition, the quality assurance framework appears to interact with the disciplinary system. The Accountancy Board’s Directive 4 on Quality Assurance contemplates the disclosure of information to disciplinary committees appointed under article 7(16) of the Act and to other regulatory authorities for the protection of the public interest. This indicates a linkage between quality assurance findings and disciplinary processes.

Based on the legal framework and publicly available information, Malta has an operational investigative and disciplinary system for professional accountants regulated at the jurisdiction level. However, the extent to which the system fully incorporates all the requirements of SMO 6 is not fully evidenced from public sources alone. Accordingly, the adoption status is assessed as Partially Adopted.

Current Status: Partially Adopted

Malta first adopted International Financial Reporting Standards (IFRS) Accounting Standards in 1995. As a Member State of the European Union (EU), Malta is subject to Regulation (EC) No 1606/2002 on the application of international accounting standards. Accordingly, IFRS Accounting Standards as adopted by the EU are required for the consolidated financial statements of all companies whose debt or equity securities trade in a regulated market.

In Malta, IFRS Accounting Standards as adopted by the EU are also required in the separate financial statements of all listed companies and in both the consolidated and separate financial statements of all banks, insurance companies, certain other supervised financial institutions, and larger companies deemed significant in the local economy. These larger companies are those meeting at least one of the following criteria: total assets exceeding €17.5 million, total revenue exceeding €35 million, an average of more than 250 employees, or where a shareholder holding 20 percent or more of the outstanding shares requests the use of full IFRS Accounting Standards as adopted by the EU.

For all other companies, IFRS Accounting Standards as adopted by the EU are permitted but not required. Entities that are not required to apply full IFRS Accounting Standards may instead apply the General Accounting Principles for Small and Medium-sized Entities (GAPSME), which form part of Malta’s national differential reporting framework.

IFRS for Small and Medium-sized Entities (IFRS for SMEs) is not adopted in Malta. Instead, Malta applies GAPSME, which is a national accounting framework developed in line with the EU Accounting Directive and differs from IFRS for SMEs.

Accordingly, as IFRS Accounting Standards in effect as of the time of the assessment are required for all domestic publicly accountable entities, the adoption status remains Adopted.

Current Status: Adopted

Relevant Organizations

Accountancy Board

International Financial Reporting Standards Foundation (IFRS Foundation)

International Forum of Independent Audit Regulators (IFIAR)

Malta Financial Services Authority (MFSA)

Malta Institute of Accountants (MIA)

Treasury Department, Ministry for Finance, Malta

University of Malta

Relevant Legislation

Accountancy Profession Act (Chapter 281 of the Laws of Malta)

Accountancy Profession (Accounting and Auditing Standards) Regulations

Companies Act (Chapter 386 of the Laws of Malta)

Directive 4 – Quality Assurance

Directive 2 – Code of Ethics for Warrant Holders (2016)

MIA Statute and Bye-Laws

Relevant Publications

Accountancy Board, Quality Assurance Guidance and Related Directives

IFRS Foundation, IFRS Application Around the World – Jurisdictional Profile: Malta

MIA, Continuing Professional Education Regulations and Programme

MIA, From Oversight to Innovation: Driving Quality and Integrity in Accountancy

National Audit Office Malta, Report by the Auditor General on the Public Accounts 2024

Treasury Department, IPSAS as adopted by the Maltese Government