PAD370

PART B

Question 1 (a)

Head of the Auditor General Department who is appointed by the YDPA on the recommendation
of the Prime Minister following discussions with the Conference of Rulers. The Federal Court can
only dismiss the Auditor General from his position. There are specific strength and weakness in the
Auditor General Report . There are three common weakness identified in the Auditor General Report
.

The first common weakness is underspending . Underspending occurs when a department or

ministry does not use all of its budgeted funds. For example, the 2013 Audit found that a total of 19
ministries and departments had failed to spend RM43.67 million in allocated funds . As a result, they
did not use all of the government's allocated funds correctly .

Secondly , overspending also lead to the common weakness identified in the Auditor General
Report . Thirty-five ministries and departments were found to have overspent a total of more than
RM 4 million, according to the 2013 audit. As a result, the level of expenditure exceeds the level of
money generated. Things like these happen as a result of a lack of budget planning .

The last common weakness identified in the Auditor General Report is store and accounting
assets did not properly managed . This has occurred as a result of the government's continued
deficiency in accounting professionals in the industry. Many stores in Malaysia are unable to
function successfully due to a limited number of quality accountants working in the country .

In conclusion , The Auditor General is responsible for conducting an audit of the report on the
account of the Federal Government. In spite of this, there are a few flaws in the report that may be
traced back to specific situations such as overspending, underspending, additional spending, a
scarcity of professionals, and a management system that is not conducive to progress.
 PAD370

Question 1 (b)

In order to conduct an audit, the Auditor General has complete authority to demand all relevant
information and explanations from the company . While carrying out his responsibilities, the Auditor
General may also seek legal guidance. Confidential information gathered by the Auditor General is
protected by law .

The Auditor General has broad authority to investigate, analyse, and audit the accounts of federal
and state accounting officials in any way he sees fit. He must analyse and audit the accounts in the
event that he discovers something amiss while checking the accounts.

When mandated by law, and when not mandated by law, any other public authority or entity's
accounts will be published in the Gazette if requested by that body and given permission by Minister
of Finance. The auditor general has the authority to conduct an audit on anyone's financial records if
required to do so by law.

Lastly , audits of any other body, including a company registered under the Companies Act 1965
[Act 125] that received a grant or loan from the Federation or the State, as well as a business where
even more than half of its salaried share capital is held by the Federation, a State, or an
administrative agency or is held in accumulation by two or more such agencies and agencies .

In conclusion , auditing is explained as part of the managing a business organization , it is

independent examination of the company financial reports , this is to assure that the financial
information of the business organization shows true and fair view of the company .