KUALA LUMPUR: All Federal Statutory Bodies are now required to set up internal audit units.
Based on the Guidelines on the Management and Governance of Federal Statutory Bodies, which was officially launched today, these internal audit units must evaluate and improve effectiveness in risk management, conduct internal controls and recommend improvements to an agency's management, among other things.
An internal audit unit must also present quarterly reports to an agency's board of directors.
These reports should include recommendations for corrective actions and improvements concerning any non-compliance found within an agency's management.
"The internal audit unit for statutory bodies is responsible for conducting audits on companies or statutory corporations that do not have their own units.
"The internal audit unit is responsible for reporting to the audit committee for presentation to the board of directors of the federal statutory body," said the guidelines as reported by Berita Harian.
If an internal audit unit cannot be established, internal audits must be conducted through other appropriate mechanisms including appointing a private audit firm.
An internal audit unit is responsible for auditing the management of activities and finances, including the evaluation of financial information and statements, existing ICT systems, asset management, financial management, and agency projects or programmes.
"The internal audit unit also acts as a coordinator for audit activities carried out by external auditors, and reports audit findings that may involve elements of fraud, waste, abuse, and negligence to the management," it said.
The quarterly reports must contain achievements of the agency's annual audit plan; statistics; status of actions taken on audit findings and any obstacle and challenge faced in carrying out the audits.
Appropriate oversight systems must also be established, particularly at the supervisory ministri-level to ensure that every Federal Statutory Body complies with all policies, laws, and regulations.
The Guidelines on the Management and Governance of Federal Statutory Bodies was enforced following a General Circular issued on April 30.
This following the guidelines' approval by the Special Cabinet Committee on National Governance Series 2 Number One 2024.
The guidelines were launched today by Prime Minister Datuk Seri Anwar Ibrahim at an event attended by the Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz; Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki; and the Auditor-General Datuk Wan Suraya Wan Mohd Radzi.