The Revised MGA Audit Service Provider Guidelines: What You Need to Know
08 June 2023
The Malta Gaming Authority (MGA) has recently issued its final version of the revised Audit Service Provider Guidelines, which includes some procedural and compliance-related changes as well as significant amendments related to the scope of audit-related engagements. This change is a welcome development for the industry, as it provides greater clarity on the responsibilities of audit firms and licensees, promoting more effective regulation and accountability.
This article will discuss the content and impact of the revised guidelines, and how AE Business Advisors can help you navigate and apply them.
The Revised Guidelines
The most notable change in the revised guidelines is the expansion of its scope to include other audit-related engagements, in addition to system and compliance audits. This now includes System Reviews, Statutory Audits, and Agreed Upon Procedures. System Reviews are conducted after the first year of licensing or within a shorter timeframe if a system audit is not required at the licensing stage. Statutory Audits refer to audited financial statements, while Agreed Upon Procedures are engagements related to player funds and gaming revenue declarations.
The MGA has stated that the revised guidelines will come into effect immediately. Hence, any renewal applications yet to be submitted must be in line with the new policy. Audit firms currently on the MGA’s list of approved system and compliance auditors are automatically permitted to perform System Reviews without needing additional approval. These firms are also permitted to perform Statutory Audits and Agreed Upon Procedures, provided that they are recognised as audit firms by the Accountancy Board.
However, audit firms not currently on the MGA’s approved list must submit an application if they intend to perform Statutory Audits and/or Agreed Upon Procedures for financial years ending December 2022 onwards, by 31 January 2023. For audit firms that have already entered into letters of engagement for the performance of Statutory Audits and/or Agreed Upon Procedures for financial years ending December 2022 onwards, they may proceed with such engagements.
Licensees must ensure that new audit-related engagements falling within the scope of the revised policy are only entered into with auditors approved by the MGA. This ensures that the audit function is conducted effectively and efficiently, which is a critical aspect of maintaining integrity and trust in the gaming industry.
How AE Business Advisors Can Help
AE Business Advisors is committed to staying at the forefront of regulatory compliance in the gaming industry. We are an MGA approved firm with all the necessary approvals from said MGA to perform statutory audits on behalf of clients. This allows them to obtain from us the necessary support and guidance they require to ensure that they remain compliant with all the MGA’s regulations.