Kuala Lumpur: The amendment to the Audit Act 1957 [Act 62], which came into force last year, empowers the National Audit Department to conduct thorough audits of 1,856 government-linked companies (GLCs), said Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. She stated that the amendment expands the department’s scope, thereby strengthening the government’s oversight of governance and financial management within GLCs.
According to BERNAMA News Agency, the amendment aligns with the amended Act 62, extending the Auditor-General’s powers to include audits of entities receiving government financial guarantees, introducing the ‘follow the public money’ audit approach. This approach reflects the department’s strategic role in detecting and assessing accounting fraud risks more effectively and in a more targeted manner, as explained by Wan Suraya at a press conference after the launch of the Accounting Fraud Working Group.
Wan Suraya emphasized that all GLCs would be held accountable for any irregularities identified in the Auditor-General’s Report. She noted that the Auditor-General’s Report Follow-Up Committee uncovered several instances of leakages through state and federal financial statements, which are now in the process of being recovered. In addition to the GLCs, the department also audits statutory bodies, ensuring that follow-up action is taken when leakages are detected, whether in the form of uncollected or unreceived revenue.
Furthermore, Wan Suraya added that beyond the recovery of public funds, the audit process aims to determine whether serious irregularities, governance lapses, or systemic failures have occurred. She highlighted that the department is exploring the use of emerging technologies to enhance fraud detection, in line with increasingly complex trends. The department is undergoing a digitalization process, with most audits now conducted digitally, and is exploring how new technologies can be leveraged to detect sophisticated and evolving fraud risks, making this an integral part of ongoing audit operations.