The Malta Institute of Accountants was founded in 1942 during World War II under the presidency of Paul Busuttil. Even then, in times of turmoil and uncertainty it was felt that the profession should be regularised and organised; and thus the accountancy profession was formally born in Malta.

In the very early stages, and prior to the introduction of the Income Tax Act in 1948, most business concerns were capable of understanding the true position of their affairs from facts and figures, which a book-keeper was capable of compiling. Often, the accountant was referred to by his employer as "l-iskrivan". The introduction of the Income Tax Act and the post-war wave of industrialization saw the role of the accountant taking a different dimension.
With the expansion of business and with the ever-increasing complexity of business records, the value of the accountancy profession, as distinct from the class of book-keepers, was more generally felt. Maybe the most striking development in the profession was the time when "l-iskrivan" was being seen as the "business doctor".

This development saw the emergence of another local body of accountants "The Malta Corporation of Accountants" which was formed in 1954 under the presidency of John Falzon.

The first milestone for the profession came with the introduction of the Commercial Partnerships Ordinance which provided for the requirements of limited liability companies to appoint an auditor who, in order to be granted a warrant to act as such, had to be a member of a local body of accountants.
This was the first statutory recognition of the profession. This sole recognition was later to be safeguarded against the engagement of foreign auditors, and the Institute took a steady stance to prevent such foreign competitors. In view of this development, the two bodies, The Malta Institute of Accountants (53 members) and the Malta Corporation of Accountants (18 members) then agreed to merge into one body.

The two associations held two contemporary but separate extraordinary general meetings at the Chamber of Commerce in Valletta on 28 May 1965 where both bodies unanimously approved a motion to merge into one body under the style of "the Malta Institute of Accountants".

Immediately following these two E.G.M.s the members of both bodies convened in a joint Extraordinary General Meeting to elect a Council of 12 members for the Institute as newly formed. The following were elected as the first Council members: Hon President, Paul Busuttil, President, John Falzon, Vice-President, Arthur Arrigo, Secretary, Joseph Tabone, Assistant Secretary, Sydney Barbara, Treasurer, Philip Galea Souchet, Assistant Treasurer, Anthony Camilleri, Members, Gontran Borg, Francis X. Darmanin, Edward Messina Ferrante, Charles Sammut and John L. Duncan.

For some years after the Institute was referred to as "The Malta Institute of Accountants Incorporating The Malta Corporation of Accountants".

Conscious of the need for more professionals to meet the ever-increasing demand for their services the Institute, in 1967, introduced its professional examinations generally based on those set by U.K. accountancy bodies, with which the Institute had very good relationships. The examination, spanned over a five-section curriculum, included specific papers relating to Maltese legislation for the benefit of professionals with foreign qualifications.

Foreign recognition of the Institute was confirmed in 1977 when the Malta Institute of Accountants became a founder member of the International Federation of Accountants and the International Accounting Standards Committee. This membership was not only recognition of the status of the local profession but brought about the development of the adoption of International Accounting Standards and Auditing Guidelines by members of the Institute.

Local recognition of accountancy as a profession came about in 1979 with the enactment of the Accountancy Profession Act, which introduced the granting of, warrants of Certified Public Accountants and Certified Public Accountants Auditors by the Minister of Finance. Under the Act the Institute gained statutory recognition - to date the Institute is the only recognised local body. Another Milestone in the Institute's History is its accession as full member of the Federation des Experts Comptables Europeens. In September 1989 the Institute was approved a member body by unanimous vote at an Extraordinary General Meeting of FEE, which was convened in Brussels for that specific purpose. This was a very important development in the history of the accountancy profession in Malta and not only placed the Institute amongst the foremost organisations of the profession but put the Institute in a position to participate in the development of the profession in Europe and to respond to, and express its views on, EU directives as these are formulated.