1. To identify the roles of the National Audit Department. 2.0 Research question
1. What is National Audit Department (NAD)?
2. What are the roles of the National Audit Department of Malaysia (NAD)? 3.0 Finding
3.1 Auditing in Malaysia
It is a systematic process done to evaluate and examine financial statement made by the government agencies to match with the budget approved by the parliament and have to communicate the audit to the interest party. Audit Institution in Malaysia is existedalmost 100 years since the British colonial period. There are two types of audit, (a) internal audit;conducted by authorized officers within the government agency or department, (b) external audit that is conducted by Auditor General to produce Financial Statement & present full report to Parliament every year. Federal Constitution (under Article 105) and the Audit Act1957 have stated the position, selection, power, remuneration, duties and also the nature of National Audit Department (NAD) in Malaysia. Federal constitution is giving the auditor general freedom in auditing the financial and management statement in an independently and good manner. The mission of National Audit Department is to become a professional and independent audit for the implementation of state finance and also to produce a balanced report for the parliament and enhance good governance in Malaysia’s public sector (official website of National Audit Department, 2012). National Audit Department is related to the concept of accountability, transparency and integrity. Accountability refers to the ability of National Audit Department to the obligation on the part of public officials to report on the usage of public resources and answerability for failing to meet stated performance objectives.Auditor general has the responsibility to analyze and detect the flows of money within and outside the government agencies to make check and balance’s report to the Parliament. Integrity refers to “honesty” or “trustworthiness” in the discharge of official duties, serving as a contrast to “corruption” or “the abuse of office.” Here, national audit department will ensure funds and budget given to the government agencies is using wisely, accordance to plan and at the same times to avoid white collar crime (fraud, misuse of power, corruption). The term transparency in National Audit Department refers to tolerant access or easiness of by the public to timely and reliable information on decisions and performance in the public sector. National Audit Department will publishes the audit report to the public to inform the public the financial statement made by the government agencies. The term accountability, transparency and integrity related toNational Audit Department because; it is only government agencies that analyze and audit the government financial statement. Apart from that, the department is free from politic influence. According to previous Prime Minister, Dato’ Sri Abdullah Ahmad Badawiat the launching of National Integrity Plan (2004),auditing is a form of ‘check and balance’ process that issignificant to determine whether a monetarytransaction of government institution is running well and under control. In order to uphold the responsibility, National Audit Department has to come out with three types of audit; (a) financial audit, (b) compliance audit and (c) management audit. Financial audit is referring to the audit performed that verifies the accurateness and fairness of the annual financial statement of public agencies. It will help National Audit Department to know whether the government agencies are followingregulatory requirements and also to identify whether the financial statement that prepared by the government agencies accordance to the specified rules and regulations.Financial audit focuses on payment made, expenditure incurred, taxes collected and uncollected, loans given and repayments whether have been made or not.It also will...