AUDIT ACT 1957

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 62 AUDIT ACT 1957 As at 1 December 2024 This text is ONLY AN UPDATED TEXT of the Audit Act 1957 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 AUDIT ACT 1957 First enacted … … … 1957 (Ordinance No. 60 of 1957) Revised … … … 1972 (Act 62 w.e.f. 1 March 1972) Latest amendment made by P.U. (A) 255/2025 which came into operation on … … … 1 December 2024 PREVIOUS REPRINTS First Reprint … … … … … 1993 Second Reprint … … … … … 1999 Third Reprint … … … … … 2006 3 LAWS OF MALAYSIA Act 62 AUDIT ACT 1957 ARRANGEMENT OF SECTIONS Section 1. Short title 2. Interpretation 3. Terms and conditions of service of Auditor General 4. Remuneration of Auditor General 5. Duties of Auditor General 6. Nature of audit 7. Powers of the Auditor General 7A. Power to issue guideline 8. Secrecy 9. Audit reports 9A. Follow-up audit 10. Regulations 11. Power to amend Schedule FIRST SCHEDULE SECOND SCHEDULE 5 LAWS OF MALAYSIA Act 62 AUDIT ACT 1957 An Act to make provision for the audit of the accounts of the Federation, of the States and of certain other authorities and specified bodies. [Peninsular Malaysia—31 August 1957, Ord. No. 60 of 1957; Sabah and Sarawak—16 September 1963, L.N. 348/1963] Short title 1. (1) (a) This Act may be cited as the Audit Act 1957. (b)–(c) (Omitted). (2) This Act shall apply to the audit of the accounts of the Federation, of the States and of such other public authorities and specified bodies as are subject to audit by the Auditor General. Interpretation 2. (1) Words and expressions used in this Act shall, unless the context otherwise requires or it is herein otherwise expressly provided, have the meaning assigned to them in the Financial Procedure Act 1957 [Act 61]. (2) Notwithstanding subsection 1(2), in its application to this Act, the expression “public moneys” shall include moneys received by or on account of any public authority established under Federal or State law and the expression “public stores” shall include chattels the property of or in the possession or under the control of any such authority. 6 Laws of Malaysia ACT 62 Terms and conditions of service of Auditor General *3. The Auditor General (otherwise known as “Ketua Audit Negara”) shall be deemed to be an officer of the general public service of the Federation and, save as is otherwise provided in the Federal Constitution and under this Act, the law for the time being in force relating to the public service of the Federation and to members thereof shall apply to him. Remuneration of Auditor General 4. (1) The remuneration of the Auditor General shall be as specified under the First and Second Schedules. (2) The expression “remuneration” in this Act shall have the meaning assigned to that expression in Article 160(2) of the Federal Constitution. (3) All payments made under the First and Second Schedules shall be charged on the Consolidated Fund. Duties of Auditor General 5. (1) The Auditor General shall in such manner as he may deem fit examine, enquire into and audit— (a) the accounts of accounting officers of the Federation and of the States; (b) the accounts of any separate fund established in a State or the Federal Territory under Article 97(3) of the Federal Constitution notwithstanding any law to the contrary; (c) the accounts of any other public authority or body if it is so provided by law in any case; and, where it is not so provided, at the request of that authority or body and with the consent of the Minister of Finance to be notified in the Gazette; *NOTE—Any reference in any written law to “Juru Audit Negara” shall be construed as a reference to “Ketua Audit Negara”—see subsection 4(2) of Act A430. Audit 7 (d) the accounts of— (i) any other body, including a company registered under the Companies Act 2016 [Act 777], in receipt of a grant or loan from the Federation or a State; (ii) a company registered under the Companies Act 2016, where more than half of paid-up share capital of the company is held by the Federation, a State or a public authority or is so held in the aggregate by two or more of them; (iii) any other body, including a company registered under the Companies Act 2016, in receipt of financial guarantee given by the Federation or a State; and (iv) any other body, including a company registered under the Companies Act 2016, in receipt of public moneys if the Minister of Finance is satisfied that the public interest urgently requires that the accounts of any such body shall be examined, inquired into and audited by the Auditor General: Provided that the Yang di-Pertuan Agong so specifies by order under Clause (2) of Article 106 of the Federal Constitution and notwithstanding any law relating to the audit of the accounts of any such body; (e) (Deleted by Act A558); (f) the accounts of any other public authority if the Minister of Finance is satisfied that the public interest requires that the accounts of the authority shall be examined, inquired into and audited by the Auditor General notwithstanding any law relating to the accounts and audit of any such authority: Provided that the Minister shall not cause the accounts of any such authority exercising powers vested in it by State law to be so 8 Laws of Malaysia ACT 62 examined, inquired into and audited unless he shall first have consulted the Menteri Besar or Chief Minister of that State. (2) The fee for the audit of the accounts in paragraphs (1)(b) and (c) and subparagraphs (1)(d)(i), (ii) and (iii) shall be determined in every case by the Treasury in consultation with the Auditor General and such fee shall be a charge on the fund of the authority or body concerned. (3) No fee shall be payable for an audit required in accordance with subparagraph (1)(d)(iv) and paragraph (1)(f). (4) For the purposes of subparagraph (1)(d) (iii), “financial guarantee” shall have the same meaning assigned to it in the Public Finance and Fiscal Responsibility Act 2023 [Act 850]. Nature of audit 6. The Auditor General shall in his audit make such examination as he may deem necessary to ascertain— (a) whether all reasonable precautions have been taken to safeguard the collection and custody of public moneys or other moneys subject to his audit; (b) whether issues and payments of moneys subject to his audit were made in accordance with proper authority and payments were properly chargeable and are supported by sufficient vouchers or proof of payment; (ba) whether due care has been taken to account for and to ensure proper use, control, maintenance and disposal of all public stores or other stores subject to his audit; (c) whether all accounts and other records have been and are properly and faithfully maintained; (d) whether in his opinion moneys have been applied to the purposes for which they were appropriated or authorized and the activities related to such purposes were carried out or managed in an Audit 9 efficient manner with due regard for economy and the avoidance of waste or extravagance; and (e) whether the provisions of the Federal Constitution and of the Financial Procedure Act 1957, and any other written law relating to moneys or stores subject to his audit have been in all respects complied with. Powers of the Auditor General 7. (1) In the performance of his functions under the Federal Constitution or this Act the Auditor General— (a) may call upon any person for any explanations and information which the Auditor General may require in order to enable him to discharge his duties; (b) may, without payment of any fee, cause search to be made in and extracts to be taken from any book, document or record in any public office; (c) shall have access to all records, books, vouchers, documents, cash, stamps, securities, stores or other property subject to his audit; (d) may examine upon oath or affirmation (which oath or affirmation the Auditor General is hereby empowered to administer) any person whom he may think fit to examine respecting all matters and things whatever necessary for the due performance of his functions; (e) may authorize any public officer on his behalf to conduct any inquiry, examination or audit and to report thereon to him; and (f) may obtain the advice of a law officer upon any question of law. 10 Laws of Malaysia ACT 62 (2) Any of the powers conferred by this section upon the Auditor General may be exercised by a public officer authorized by the Auditor General in writing to exercise the power on his behalf. (3) The Auditor General may authorize any person he deems competent to conduct on his behalf and under his direction any inquiry, examination or audit and to report his findings thereof to him and for that purpose may make arrangement for the payment of any fee with the agreement of the Treasury and the parties concerned and any of the powers conferred by paragraphs (1)(a), (b), (c) and (d) upon the Auditor General may be exercised by such person if he is authorized by the Auditor General in writing to exercise the power on his behalf. (4) Every person called upon for any explanations or information pursuant to paragraphs (1)(a) and (d) shall be legally bound to furnish such explanations or information, as the case may be. Power to issue guideline 7A. The Auditor General may issue any guideline as may be necessary or expedient for the purpose of carrying out the provisions of this Act. Secrecy 8. (1) The operation of section 7 shall not be limited by any provision (including a provision relating to secrecy) contained in any other law except to the extent to which any such other law expressly excludes the operation of that section. (2) Notwithstanding anything contained in any other law and notwithstanding the making of an oath or declaration of secrecy a person shall not be guilty of an offence by reason of anything done by him for the purposes of section 7. (3) Neither the Auditor General nor any other person shall divulge or communicate, except in the course of duty to another person performing duties under this Act, any information which has come to his knowledge directly or indirectly in accordance with section 7 in any case in which the Audit 11 person from whom the information has been obtained or from whose custody accounts, books, documents or papers from which the information was derived were produced could not, but for this Act, lawfully have divulged that information to the Auditor General or that other person. (4) Subsection (3) shall not prevent the making, divulging or communicating in any report of the Auditor General of conclusions, observations or recommendations which are based on information obtained in accordance with section 7. Audit reports 9. (1) The Minister or the Menteri Besar or Chief Minister of a State as the case may be shall, as soon as a statement required under section 16 of the Financial Procedure Act 1957, has been prepared, transmit the statement to the Auditor General who shall forthwith cause the statement to be examined and audited and prepare his report thereon. (2) In the event of any such statement not being received within a period of seven months after the close of the financial year to which it relates, the Auditor General shall submit a report to that effect to the Yang di-Pertuan Agong who shall cause it to be laid before the Dewan Rakyat at its next meeting, and in the case of a report relating to a statement due from the Menteri Besar or Chief Minister of a State, the Auditor General shall, before submitting the report to the Yang di-Pertuan Agong, submit a copy thereof to the Ruler or Yang di-Pertua Negeri of that State who shall cause it to be laid before the Legislative Assembly at its next meeting. (3) A copy of every report re