Article search by : Mr. Mohd Nasarudin Ismail

Source : https://www.planmalaysia.gov.my/index.php/en/soalan-lazim-rancangan-fizikal-negara/soalan-lazim-pengauditan/371-apakah-perbezaan-di-antara-audit-dalam-dan-audit-luar

 

In the public sector, the external audit function is performed by the National Audit Department, where the powers and responsibilities of the Auditor General are set out in Articles 106 and 107 of the Federal Constitution and the Audit Act 1957. While the powers and responsibilities of Internal Audit are based on Treasury Circular No. 9 2004. External Audit is accountable to Parliament on public accountability. Instead, Internal Audit is part of the management control system in the Agency and it is directly accountable to the Director General.

 

How is the implementation of auditing by Internal Audit implemented in the agency?

The implementation of audit activities by Internal Audit is made based on the Annual Plan prepared at the beginning of each year and has received approval from the Director General. In addition, special instructions from time to time received from the Director General become a source of authority in conducting special audits/investigations related to an issue not scheduled in the Annual Plan.

 

What is the main role played by Internal Audit?

The auditing approach practiced by Internal Audit is more in the form of a 'problem solver' than a 'fault finder'. This means that Internal Audit has an important role in ensuring that best practices are always practiced by the agency in any activity through advisory services in the form of recommendations for improvement and correction when a weakness has been identified.

 

How can the Internal Audit Division aid their agency achieve its objectives?

Internal Audit Division can assist the agency in achieving its objectives through the following:-

a) Improve the management of internal control to the agency.

b) Assist the agency to identify weaknesses and practices that are in conflict with current regulations and then recommend improvements on how an issue can be resolved.

c) Assist agencies in improving accountability and integrity in financial management.

 

What does auditing stand for?

An audit can be defined as a continuous and systematic examination, analysis and evaluation of the financial and operating records, administrative activities of an organization to determine whether general accounting principles, management policies, rules and procedures in force are always followed.

 

What is the difference between Internal Audit and External Audit?

In the public sector, the external audit function is performed by the National Audit Department, where the powers and responsibilities of the Auditor General are set out in Articles 106 and 107 of the Federal Constitution and the Audit Act 1957. While the powers and responsibilities of Internal Audit are based on Treasury Circular No. 9 2004. External Audit is accountable to Parliament on public accountability. Instead, Internal Audit is part of the management control system in the Agency and it is directly accountable to the Director General.

 

 

 

 

Date of Input: 01/07/2022 | Updated: 01/07/2022 | nurmiera