PUTRAJAYA (Feb 6): Prime Minister Datuk Seri Anwar Ibrahim on Thursday launched four new auditing guidelines introduced by the National Audit Department (NAD), expanding its authority to audit any other entities and companies that receive public funds following the amendments to the Audit Act 1957.

The audit will involve 1,856 entities, including government-linked companies (GLCs), government-linked investment companies and companies limited by guarantee.

The four new guidelines are the guideline for the audit of management of government companies, the “Follow the Public Money Audit” (FPMA) guideline, the guideline for follow-up audit, and the Auditor General’s certification guideline for financial statements.

The FPMA introduces a new approach that allows the AG to audit entities and companies that receive public funds if the Minister of Finance deems it necessary for their accounts to be promptly examined, investigated and audited for public interest.

“When we talk about institutional reforms, this effort is relevant and important. For the first time, we are directing our focus on agencies and companies. The principle is clear — any entity, including politicians, Members of Parliament, or companies receiving government funds, must be held accountable transparently,” Anwar told the media following the launch.

The guidelines were introduced by the NAD following the approval of the Audit (Amendment) Bill 2024, which amends the Audit Act 1957, by the Dewan Negara on July 24, 2024. The Bill had previously been passed by the Dewan Rakyat on July 3, 2024.

The amendments aim to improve the scope of auditing the management of public money, while ensuring that audit recommendations receive serious attention and appropriate action from all parties, including ministries, departments, government agencies, and any entity receiving public funds

“The amendment to the Audit Act 1957 is a game changer for the NAD, particularly with the establishment of a new auditing approach called ‘Follow the Public Money Audit’,” AG Datuk Seri Wan Suraya Wan Mohd Radzi said during her opening speech.

“Additionally, the expanded scope of the AG’s powers now includes auditing entities that receive government interests in the form of financial guarantees.”

It was noted that the Audit Act 1957 has not been amended since 1991.  

To ensure effective audits that yield significant administrative and public impact, the NAD has also introduced the e-SelfAudit system as an innovative tool to promote accountability, transparency, and good governance in GLCs.

The system is one of eight components under the NAD's service digitalisation project that has been implemented since end-2024, developed internally with insights from strategic partners such as audit firms Deloitte, Ernst and Young, and PricewaterhouseCoopers.

“The e-SelfAudit system enables the NAD to identify key audit areas and assess risks using big data analytics and a clear, detailed audit trail. The e-SelfAudit system also allows for real-time auditing, providing immediate findings.

“This is expected to assist GLCs in fulfilling their establishment mandates and objectives, ensuring efficient financial and operational management, as well as adhering to good governance principles,” Wan Suraya added.

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