Dhayalaruban Thangaraja
Director of Internal Audit
The Malta Gaming Authority licensing process requires the fulfilment of a number of pre-determined criteria and the establishment of organisational ‘Key Functions’ – a list of 9 to 15 key positions (depending on the license type sought) within the companies’ governance structures that significantly aid in the establishment of optimal operative practices and safeguard their long-term capacity for stability.
This key position within the organisational structure is intended to act as the ‘third line of defence’ (behind the first and second lines in the form of the primary process owners and the supporting risk and regulatory functions), providing independent assurance on the overall robustness of the established internal control framework whilst highlighting areas for improvement.
Ensuring robust internal controls in gaming organisations through independent audit functions
The Internal Audit Function is in fact tasked with reporting directly to both the companies’ established Board of Directors/Audit Committees and the MGA itself in its regulatory oversight role. It acts as the primary intermediary between the engaging entities and the Regulating Body itself on all matters related to internal controls and comprehensive risk regulation. Such a function may be fully outsourced or partially co-sourced to specialised internal audit practitioners who hold an independent position within the companies’ established organisational structures, thereby allowing for the full maximisation of the benefits that may be derived.
The general expectation is that internal audits are conducted regularly based on an established internal audit plan, which should be revised at least on an annual basis to reflect changes in business risks and the regulatory environment.
How can BDO help?
BDO Malta can be engaged as a specialised internal audit practitioner capable of guaranteeing the introduction of autonomous elements and capable of providing a distinct insight into the core operational framework of the engaging entities, employing a significantly varied approach to traditional in-house audit functions due to their undisputed independence from the operative fulcrum targeted.
BDO Malta can assist companies through:
- full internal audit function outsourcing;
- internal audit function co-sourcing;
- external support of “in-house” internal audit functions; and
- specialised training on the internal audit function.