   ACCOUNTANCY PROFESSION _g CAP. 281.        1
CHAPTER 281 
ACCOUNTANCY PROFESSION ACT
To regulate the accountancy profession and to provide for matters
connected therewith or ancillary thereto.
1st April, 1980;
30th March, 1981;
1st February, 1987;
1st April, 1987
ACT XXVIII of 1979, as amended by Acts XIII of 1983, XXXIV of 1986,
XVI of 1991, XVIII of 2002 and II of 2003.
Short title.
Interpretation.
"accountant" and "auditor" include, respectively, a partnership of
accountants and a partnership of auditors;
"approved accountancy body" means a local association of
accountants for the time being recognized by the Minister as an
approved accountancy body under article 9;
"Board" means the Accountancy Board established by article 6;
"Minister" means the Minister responsible for finance and, to the
extent of any functions delegated to it by the Minister, includes the
Board;
"prescribed" means prescribed by regulations under this Act.
(2) For the purposes of this Act references to a warrant issued
thereunder includes references to a warrant deemed to have been so
issued.
Warrant required 
to practise the 
profession. 
Amended by: 
XIII. 1983.5; 
XXXIV.1986.2; 
XVI. 1991.2.
3. (1) No person shall practise the profession of accountant
unless he is the holder of a warrant issued under articles 4 or 5.
(2) No person shall act as auditor unless he is the holder of a
warrant issued under article 5.
(3) A person shall not qualify for a warrant under either of the
articles aforesaid unless - 
( a ) he is a citizen of Malta;
( b ) he is of good conduct and moral character; 
( c ) he is of full legal capacity; and
( d ) he has obtained the degree of Bachelor of Arts
(Honours) in Accountancy, or any other degree from
the University of Malta recognised by the Board to be
equivalent thereto:
 Provided that where a person holds an academic
qualification relating to the accountancy profession as
at the time of application is recognised by the Board to
  2      CAP. 281. _h                ACCOUNTANCY PROFESSION
be sufficient for the purposes of this subarticle, the
Board shall exempt such person from the requirements
of this paragraph after such person shall have passed
such examination or examinations in local laws and in
those other subjects as the Board may prescribe;
( e ) 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
( d ).
(4) Notwithstanding the provisions of subarticles (2) and (3),
the Minister may, after consulting the Board, issue, to any person
who is duly qualified to act as auditor in any country outside Malta,
a warrant to act as auditor in Malta for such limited period or
periods or such specific purpose or purposes, or both such period
and purpose, and subject to such other conditions as may be
specified in the warrant.
(5) Any person who acts in contravention of any of the
provisions of this article shall be guilty of an offence and shall be
liable on conviction for each offence, in respect of the first offence
to a fine ( multa ) not exceeding one hundred liri and in respect of a
second or subsequent offence to a fine ( multa ) not exceeding five
hundred liri or to imprisonment for a period not exceeding six
months, or to both such fine and imprisonment, and in the case of a
continuing offence to an additional fine ( multa ) not exceeding ten
liri for each day during which the offence continues.
(6) Any person who, for the purpose of obtaining a warrant
under this Act, gives any wrong information or otherwise acts in a
deceitful or fraudulent manner, shall be guilty of an offence and
shall be liable on conviction for each offence to a fine ( multa ) not
exceeding one thousand liri or to imprisonment not exceeding
twelve months or to both such fine and imprisonment.
(7) Any person who, not being the holder of the appropriate
warrant issued under this Act, assumes the title or designation of
"certified public accountant" or of "certified public accountant and
auditor" or their abbreviations "CPA" or "CPAA" or in any other
manner indicates that he is entitled to exercise the profession of
accountant or to act as auditor in Malta, shall be guilty of an
offence and shall be liable on conviction for each offence to a fine
( multa ) not exceeding one hundred liri and in respect of a second or
subsequent offence to imprisonment for a period not exceeding
three months or to both such fine and imprisonment.
Certified Public 
Accountants. 
Amended by: 
XXXIV. 1986.3; 
XVI.1991. 3.
4. * (1) A warrant to practise the profession of accountant shall
be issued by the Minister on the recommendation of the Board to
any person who satisfies the requirements of article 3(3).
(2) The holder of a warrant issued under this article shall be
entitled to use the designation "Certified Public Accountant" as
* See   article  6 of Act XXXIV of 1986. (Trans. Prov.)
   ACCOUNTANCY PROFESSION _g CAP. 281.        3
well as the abbreviation "CPA".
Certified Public 
Accountants and 
Auditors.
Amended by: 
XVI. 1991.4;
II. 2003.27.
5. * (1) A warrant to act as auditor shall be issued by the
Minister on the recommendation of the Board to a person who -
( a ) is a certified public accountant; and
( b ) satisfies the Board that - 
(i) he has adequate qualifications in auditing; and 
(ii) he has gained three years’ full time experience
in auditing at a senior level under the
supervision of a holder of a warrant of Certified
Public Accountant and Auditor or such full time
experience in auditing at an adequate level in
any country outside Malta under the supervision
of such person or persons whom the Board
considers as adequate for the purpose, or a
combination of such full time experience in
Malta and outside Malta:
 Provided that at least two years of this
experience were gained after obtaining the
degree or academic qualification relating to the
accountancy profession prescribed in article
3(3)( d ):
 Provided further that any experience gained
before the qualification above referred to shall
be considered to amount to only one half of the
time so spent and shall in no case be deemed to
exceed one year:
Provided further that the supervision
required under this article shall be carried out by
persons providing such adequate guarantees
regarding training as may be prescribed.
Cap. 168.
July, 1978, under the provisions of article 141 of the Commercial
Partnerships Ordinance †  as in force at the time of the issue of the
authorization, in favour of a person who was then a member of a
body of accountants recognized for the purposes of that article,
shall for all purposes have the same effect of a warrant issued under
this article and be deemed to have been so issued.
(3) The holder of a warrant issued under this article shall be
entitled to use the designation "Certified Public Accountant and
Auditor" as well as the abbreviation "CPAA".
Accountancy 
Board. 
Amended by: 
XXXIV. 1986.4.
6. (1) There shall be a Board, to be known as the
Accountancy Board, consisting of a chairman and six other
members, who shall be appointed by the Minister and shall hold
office for such term, not exceeding three years, and under such
conditions as may be set out in their respective letters of
appointment:
* See   article  6 of Act XXXIV of 1986. (Trans. Prov.)
†Repealed by Act XXV of 1995 (Cap. 386).
  4      CAP. 281. _h                ACCOUNTANCY PROFESSION
Provided that on the expiration of the term for which a person
is appointed under this subarticle, he shall be eligible for
reappointment.
(2) The chairman and two of the other six members shall be
persons of recognized standing and experience in business matters
or in industrial relations or in the public service; the other four
members shall be holders of a warrant issued under article 4 or
article 5 of this Act and shall be persons of experience in academic
or professional matters. Two of these other four members shall be
appointed by the Minister, one after consulting the University of
Malta and the other after consulting any association or associations
for the time being recognized as an approved accountancy body or
bodies.
(3) The number of members present necessary to form a
quorum shall be four, but, subject to the presence of a quorum, the
Board may act notwithstanding any vacancy among its members.
(4) Save as aforesaid the Board may make its own rules and
otherwise regulate its own procedure.
(5) The Minister may also designate a public officer to act as
secretary to the Board, but the secretary shall not have a vote.
Functions of the 
Board.
Amended by:
II. 2003.28.
7. (1) The functions of the Board are:
( a ) to consider applications for the issue of a warrant
under article 4 or article 5 and make its
recommendations thereon to the Minister;
( b ) to deal with cases leading to the suspension or
withdrawal of any of the warrants aforesaid as
provided by or under this Act;
( c ) to advise, or make recommendations or otherwise
express its views to the Minister on any matter on
which the Minister is to consult with the Board or on
which the Board is to make recommendations to the
Minister or on which the opinion or recommendation
of the Board is sought by the Minister;
( d ) such other functions as arise from this Act or any other
law or as may be delegated to it by the Minister under
this Act.
(2) In the exercise of its functions under paragraph   of
subarticle (1)( c ) or ( d ), the Board may consult with such persons as
it may deem appropriate, and may also appoint committees, of
which the chairman shall be a member of the Board, for the
carrying out of such studies or other work as the Board may assign
to them.
(3) The Board shall, not later than three months after the end of
each year, publish a list of the persons who, on 31st December of
the said year, were holders of a warrant issued under this Act. Such
list shall include the names and addresses of all warrant holders and
of all partnerships registered in terms of article 10 and in the case
of such partnerships also the names and addresses of their
respective partners.
   ACCOUNTANCY PROFESSION _g CAP. 281.        5
Regulations.  
Amended by: 
XIII. 1983.5.
8. The Minister may, after consulting the Board, make
regulations not inconsistent with the provisions of this Act, to give
better effect to any of such provisions and generally to regulate the
profession of accountants, and, without prejudice to the generality
of the foregoing, such regulations may in particular include
provisions with respect to - 
( a ) the establishment of accountancy and auditing
standards, procedures and other duties and practices to
be followed by accountants or auditors, or by both,
either generally or in particular fields of activity;
( b ) the professional conduct of accountants and auditors
and the standards of competency and integrity to be
kept by the profession;
( c ) the issue of guidelines and other advice to accountants
and auditors;
( d ) the recognition of an approved accountancy body, the
conditions for such recognition and the suspension or
withdrawal thereof;
( e ) the work which cannot be performed and the services
which cannot be rendered, whether wholly or in part,
except by a person holding a warrant under this Act;
( f ) the work which cannot be performed and the services
which cannot be rendered by persons holding a
warrant under this Act;
( g ) the fees that may be charged by accountants and
auditors whether for their services as such or for other
services given by them in other capacities which, in
the opinion of the Minister, are related to their
professional qualifications; the authority, if any, by
which any dispute concerning such fees may be settled
and the procedure to be followed by any such
authority;
( h ) any matter which is required or is authorised by this
Act to be prescribed;
( i ) the procedures to be followed in cases of professional
misconduct and other cases leading to the suspension
or withdrawal of a warrant issued under article 4 or
article 5;
( j ) the punishments, penalties and other consequences and
effects to which a person may become liable or which
may take place in the event of any contravention of, or
non-compliance with, any provision of any regulation
under this article; sohowever that no punishment so
imposed shall exceed a fine ( multa ) of two thousand
liri, or imprisonment for a term of one year, or of both
such fine and imprisonment, or, in the case of a
continuing offence, a fine ( multa ) of ten liri for each
day during which the offence continues, whether or
not in addition to the punishments aforesaid.
  6      CAP. 281. _h                ACCOUNTANCY PROFESSION
Regulations in 
relation to the 
mutual recognition 
of qualifications.
Added by:
XVIII. 2002.10.
Cap. 450.
8A. The Minister may make regulations for bringing into effect
the provisions of the Mutual Recognition of Qualifications Act and
subsidiary legislation issued thereunder, in relation to the mutual
recognition of qualifications of accountant and auditor.
Approved 
accountancy body.
9. (1) The Minister may, after consulting the Board,
recognize any local association of accountants as an approved
accountancy body for the purposes of this Act if he is satisfied,
among such other matters as may be prescribed, that the
educational and professional qualifications demanded by such
association for associate membership thereof conform to currently
accepted standards and that such membership is open to all citizens
of Malta having such qualifications.
(2) Such recognition shall be subject to such conditions as the
Minister may in granting recognition impose or as may from time
to time be prescribed; and if at any time any of the conditions
aforesaid, or any of the provisions contained in or prescribed under
the next following subarticle, is not observed or fulfilled, or there
is a material change in the circumstances under which the
recognition was granted, the Minister may, after consulting the
Board, suspend or withdraw the recognition.
(3) An approved accountancy body shall keep a register of its
associate members and shall enter therein the names of all persons
who qualify for such membership. The said register shall be kept in
such manner as may be prescribed.
Partnerships of 
accountants or of 
auditors. 
Amended by: 
XIII. 1983.5.
10. (1) Where two or more certified public accountants intend
to practise jointly as accountants, or two or more certified public
accountants and auditors intend to practise jointly as auditors, or as
both auditors and accountants, they may form a civil partnership
having for its exclusive object the practice of accountancy (in this
Act referred to as "partnership of accountants") or, as the case may
be, the performance of functions as auditors or of both auditors and
accountants (in this Act referred to as "partnership of auditors"),
and having such powers as are necessary for the attainment of the
objects of the partnership.
(2) No person other than a certified public accountant or a
certified public accountant and auditor may be a partner in a
partnership of accountants; and no person other than a certified
public accountant and auditor may be a partner in a partnership of
auditors.
(3) Any such partnership shall, when duly formed according to
law, be registered with the Board, and upon such registration the
partners shall, for so long as it is so registered, be authorised by the
Minister to act, in the name and on behalf of the partnership, as
certified public accountants or as certified public accountants and
auditors, or both, as the case may require, and the partnership shall
be entitled accordingly to one of the designations aforesaid and the
corresponding abbreviation "CPAs" or "CPAAs".
(4) Every such partnership shall give to the Minister or to the
Board such information as they may reasonably require or as may
   ACCOUNTANCY PROFESSION _g CAP. 281.        7
be prescribed, and shall give notice to the Minister or to the Board
of any relevant change in any information previously given to them
within fifteen days after the date on which the change occurs.
(5) With respect to a partnership registered under this article,
the following provisions shall apply notwithstanding any other
provisions of this Act or of any other enactment and notwith-
standing any agreement to the contrary, that is to say - 
( a ) any act or thing that may be done by the holder of a
warrant under this Act may be done by any one or
more of the partners in the name of the partnership;
and any act or thing done in the name of the
partnership shall be done by one or more of the
partners;
( b ) any prohibition imposed by or under this Act in
respect of one of the partners shall apply to all the
partners and to the partnership even where the act
prohibited or restricted, or giving rise to the
prohibition or restriction, is done by one of the
partners;
( c ) the partners shall be jointly and severally responsible
for the actions and omissions of each and every one of
them in the performance of their duties, the
maintenance of the required professional standards and
conduct and generally in the fulfilment of their
obligations under this Act or any other applicable law,
and shall be so jointly and severally liable for any loss
or damage resulting therefrom,
and the responsibilities and liabilities aforesaid for any thing done
or omitted to be done during the period in which a person was a
partner shall not cease, in respect of such person, by his retirement,
death or other cause by which he ceases to be a partner.
(6) Any person who makes use of the designation "certified
public accountants" or "certified public accountants and auditors"
or their abbreviation "CPAs" or "CPAAs" in relation to a
partnership which is not registered under this article or in any other
manner knowingly makes use of a name falsely implying the
existence of a partnership of accountants or of auditors, or that such
a partnership is registered, or may otherwise lawfully function,
under this article, or does any other act calculated to lead to the
belief that any of the facts aforesaid exists when in fact it does not,
shall be guilty of an offence and shall be liable on conviction, for
each offence, in respect of a first offence to a fine ( multa ) not
exceeding one hundred liri, and in respect of a second or
subsequent offence to a fine ( multa ) not exceeding five hundred liri
or to imprisonment to a term not exceeding three months or to both
such imprisonment and fine, and in the case of a continuing offence
to an additional fine ( multa ) not exceeding ten liri for each day
during which the offence continues.
(7) The provisions of article 3(6) shall, with the necessary
modifications and adaptations, apply to the registration of a
partnership under this article as they apply to the issue of a warrant
  8      CAP. 281. _h                ACCOUNTANCY PROFESSION
under this Act.
Indemnity 
insurance and 
penalties for 
breach of duty. 
Amended by: 
XIII. 1983.5; 
XXXIV. 1986.5.
11. (1) Every person who is the holder of a warrant to act as
accountant or as auditor or, with respect to two or more of such
persons who have registered as a partnership under article 10, every
such partnership, shall, for so long as they hold such a warrant or,
as the case may require, for so long as they are so registered, 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, against any
liability which such person or partnership 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 partnership, or any
partner thereof, or by any of their employees, in the carrying out of
their functions as accountants or as auditors, 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.
(2) ( a ) The indemnity insurance referred to in subarticle (1)
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 by any partner or
practitioner and provided that the negligent act, error
or omission giving rise to the claim had occurred
during the period of insurance of the policy.
( b ) In the event that an insurance policy is transferred
from one insurer to another, the new policy shall
extend to indemnify the assured against any loss or
claim made against the assured in respect of any
negligent act, error or omission which has occurred, or
is alleged to have occurred, prior to the inception of
the new policy, provided that the assured is unaware of
such loss or claim at the time of completing the new
policy, and such loss or claim has not been notified
under any other policy attaching prior to the inception
of the new policy.
(3) ( a ) The requirement of an indemnity insurance under this
article shall not apply to any person who is the holder
of the warrant of accountant or of auditor 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, as the case
may be.
( b ) The provisions of paragraph ( a ) shall not be construed
as exempting any person from the obligation to be
covered by an indemnity insurance for the further
period of five years immediately following any year in
which he so exercised such profession.
   ACCOUNTANCY PROFESSION _g CAP. 281.        9
( c ) For the purpose of this subarticle any person holding
the warrant of accountant or the warrant of auditor
who in any year - 
(i) does not in any manner exercise any of the said
professions; or
(ii) exercises any of the said professions as an
employee of the Government or of a body
corporate established by law, or of another
person, or of a partnership of accountants or
auditors, in respect only of the exercise of such
professions in the course of his duties during
such employment,
shall be exempted from the obligation to be covered by
an indemnity insurance under subarticle (1).
(4) Every person or partnership bound to be covered by an
indemnity insurance under this article shall each year within a week
of taking out or renewing such indemnity insurance inform the
Board in writing of the name of the insurance company and the
relative number of the insurance policy.
(5) Every person or partnership 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 five hundred liri, 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 fifty liri for each day during which
the offence continues.
(6) Every person or partnership who acts or omits to act in
breach of his professional duty as accountant or as auditor shall, if
such act or omission amounts to dishonesty or serious misconduct,
be liable on conviction to imprisonment for a period of not less
than one year and not exceeding five years, and the court may also
inflict on him a fine ( multa ) not exceeding five thousand liri.
Prohibited 
agreements.
12. Any agreement or other arrangement purporting to exempt
an accountant or an auditor from any liability, responsibility or
duty under this Act or under any other enactment, or to relieve him
therefrom, or, except under a policy of insurance made out under
article 11, to indemnify him against any such liability or
responsibility, shall be null and void.
Remuneration of 
auditors, etc.
13. * (1) An auditor shall be remunerated solely by his fees; and
the fees that may be charged by an auditor for services as such may
not exceed the prescribed fees or be in contravention of such rules
as may be prescribed.
(2) An accountant or an auditor who renders a service in any
other capacity, or partly as accountant or auditor and partly in such
other capacity, shall, in respect of the service rendered in such
other capacity, be remunerated solely by his fees; and the fees
which he may charge therefor may not exceed those prescribed.
*This article is not yet in force.
  10      CAP. 281. _h                ACCOUNTANCY PROFESSION
(3) An accountant or auditor shall not pay or allow, or agree to
pay or allow, to any person, whether directly or indirectly, any
commission or brokerage, or any share or portion of his fees or
other professional income in circumstances in which a commission
or a brokerage fee is normally paid or allowed.
Suspension, 
revocation or 
withdrawal of 
warrants and 
suspension or 
cancellation of 
registrations.
14. (1) A warrant issued under any of the provisions of this
Act may be suspended or revoked, and the registration of a
partnership under article 10 may be suspended or cancelled, by the
Minister, in accordance with the following provisions of this
article, if the person to whom such a warrant was issued or the
partnership or any of the partners of the partnership -
( a ) has, following an enquiry held by the Board, been
found guilty of any of the following acts or omissions -
(i) dishonesty, misconduct or gross negligence in
the exercise of his profession;
(ii) conduct in contravention of regulations with
respect to professional standards, practices or
integrity;
(iii) conduct discreditable to the profession;
(iv) failure to comply with any condition attached to
a warrant under subarticle (5); or 
( b ) has been found guilty by a court of law - 
(i) of an offence under this Act or any regulations
made thereunder; or
(ii) of a crime affecting public trust or of theft or of
fraud or of knowingly receiving property
obtained by theft or fraud.
(2) A warrant issued under this Act and the registration of a
partnership under article 10 may be - 
( a ) withdrawn or cancelled by the Minister at the request
of the holder of the warrant or of the partnership;
( b ) revoked or cancelled by the Minister, after
consultation with the Board, whenever the Minister is
of the opinion that there are material circumstances
concerning the person to whom the warrant was issued
or the partnership which, if the warrant had not been
issued or the partnership registered, as the case may
require, would disqualify such person from obtaining a
warrant or such partnership from being registered.
(3) In exercising its functions under this article the Board shall
act in accordance with such rules and procedures as shall be
prescribed; and the findings of the Board shall be subject to such
reference back, review or appeal as may be prescribed.
(4) Where a warrant or registration has been suspended under
any of the provisions of this article, the suspension may be lifted by
the Minister after consulting the Board at any time; and where the
warrant or registration has been withdrawn under subarticle (2)( a ),
a new warrant may be issued or a new registration made at any time
   ACCOUNTANCY PROFESSION _g CAP. 281.        11
if the conditions for such issue or registration are satisfied.
(5) Where a warrant has been revoked under any of the
provisions of this article, other than subarticle (1)( a )(i) and ( b )(ii)
and other than paragraph ( b )(i) of the said subarticle in respect of
an offence against article 3(6) or article 10(7), the Minister may,
after the expiration of two years from the date of the revocation,
and if the Board so recommends, issue a fresh warrant under article
4 or 5, as the case may require, under such conditions as he may
deem appropriate.
(6) Upon the revocation or withdrawal of a warrant issued
under this Act, or during such period as such a warrant is
suspended, the person to whom the warrant was issued shall cease
to be the holder of such warrant; and upon the cancellation of any
registration of a partnership under article 10, or for such period as
such registration is suspended, the partnership shall cease to be
registered.
Additional 
provisions with 
respect to offences.
15. (1) The provisions of this Act establishing offences and
punishments in respect thereof shall not affect the operation of any
other law establishing offences and punishments in respect of the
same acts or omissions and shall not, in particular, affect the
application of any higher punishments under any other law.
(2) For the purposes of article 3(7) and of article 10(6), the use
on any card, letter head, sign, board, plate, advertisement or other
written, printed or engraved device, instrument or document, of the
words "certified public accountant" or "certified public accountant
and auditor" or their abbreviations "CPA" or "CPAA", whether in
their singular or their plural form, in relation to a name, shall be
sufficient evidence of the knowledge of such use by the person in
relation to whose name the said words or abbreviations are used,
unless such person proves that the use was made without his
knowledge and that upon becoming aware of the use he took
adequate steps to stop it.
(3) For the purposes of this Act - 
( a ) a person shall not be deemed to exercise the profession
of accountant or to act as auditor if he acts simply as
an employee of, or assistant to, a certified public
accountant or a certified public accountant and
auditor, or a partnership of accountants or of auditors,
and does not issue any accounting or financial
statement over his name;
( b ) to the extent that is so prescribed, a person shall not be
deemed to exercise the profession of accountant or to
act as auditor if he is in such employment or holds or
acts in such office, or performs only such work,
services, acts or functions, as may be prescribed.
