PUTRAJAYA — A total of 1,856 entities, including government-linked companies (GLCs), set to be audited next year must prepare documentation and data covering three key elements to enable the National Audit Department (NAD) to carry out its audit effectively.
Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said that the required documentation and data pertain to financial statements, the purpose of incorporation, and governance practices.
“This is the era of accountability. If previously things were more relaxed, now every government-linked company must prepare the necessary documentation and data for auditing.
“The process will focus on three aspects: financial statements, the purpose for which the company was established, and governance practices—including how bonuses are disbursed and the appointment of board members.
“All 1,856 entities need to be ready. Not all of them are large GLCs; some are special-purpose vehicles (SPVs) or low-risk entities. These are what we are scrutinising now, but the main priority is ensuring all entities have the required documents prepared.
“Most importantly, we want to avoid any serious irregularities,” she said during the Integrity Dialogue: Governance and Ethical Management from the Auditor-General’s Perspective programme held here today.
The programme was organised by Commerce Dot Com Sdn Bhd (CDC).
Previously, the Auditor-General was authorised to audit the accounts of 1,856 entities, including GLCs, effective November 1.
This follows the Audit Order (Accounts of Other Entities) (Amendment) 2024 [P.U. (A) 331/2024], gazetted on October 31 after receiving royal assent.
The number of entities now listed has more than doubled from the 925 organisations gazetted in 2022.
Strengthening Audit Follow-Ups
Additionally, Wan Suraya said the NAD will enhance the Auditor-General’s Report Follow-Up Committee (LKAN Committee) to ensure that all criticisms and recommendations presented are taken seriously by the relevant parties.
This effort is a key focus following amendments to the Audit Act 1957 (Act 62).
“Our priority is to ensure that when the LKAN is published, there are follow-ups. This is why, under the amendments passed in July, a new approach focuses on audit follow-ups.
“We are strengthening the LKAN Follow-Up Committee to address any issues raised in the report, which will also help to dispel perceptions that no action is being taken when, in fact, follow-ups are happening,” she said.
The NAD is also collaborating with enforcement agencies such as the Malaysian Anti-Corruption Commission (MACC) and the Royal Malaysia Police (PDRM) to ensure that follow-up actions are handled appropriately.
“For those who remain unclear, we have an ‘Auditor-General’s Dashboard’ displayed on the NAD’s official website. This serves as an indicator that all issues raised are being followed up.
“If there is dissatisfaction about unresolved issues highlighted in the dashboard by the relevant entities, those issues will remain flagged in yellow on the dashboard.
“This is also a key performance indicator (KPI) for all ministry secretaries-general and state secretaries to resolve issues raised in the LKAN.
“Every criticism and recommendation in the LKAN will be followed up until the NAD is satisfied,” she added. – November 20, 2024