100th Anniversary of National Audit Institution

(14 February 2006)

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History of National Audit Institution

The Institution of Audit was first established in Malaya during the British Colonial administration in the early 19th century. During this period, the office of the Auditor General was formed separately in both the Federated Malay States and the Straits Settlements. In the year 1906, the first Auditor General of The Federated Malay States was appointed. He was responsible for the audit function of the four states centered in Kuala Lumpur. Both the institutions were merged in the year 1932 and placed under the Director of Colonial Audit, London. However, auditing and the preparation of the audit report were carried out by the Auditor of the Straits Settlements and the Federated Malay States, a newly established position in Kuala Lumpur. In 1957, when the Federation of Malaya attained its independence, the post of Director of Audit was abolished and the post of the Auditor General of the Federation of Malaya was established. The appointment as well as the responsibilities of the Auditor General is stipulated under Article 105 of the Federal Constitution and the Audit Act 1957.

National Audit Academy

Under the new organizational structure introduced in 2002, the Training Branch has been placed under the Research and Training Division, Corporate Management Sector and is responsible for managing, planning and implementing the training needs of the National Audit Department. The Training Program supports the Department's Strategic Plan that is to enhance the quality of audits, the capability of auditors to give advise and the mastering of ICT as well as nurturing excellence in the work environment. This branch coordinates Training Programs which encompasses various aspects in auditing, accounting, ICT and management. To strengthen our Training Program, the National Audit Academy was built at the cost of RM42.42 million. The Academy is located in the township of ENSTEK Seremban, Negeri Sembilan. This Academy was launched on 24 November 2005 and provides facilities such as classrooms, hostels, auditorium, quarters, mosque and recreational utilities.

National Audit Department Logo

The concept for the new logo is based on a combination of a stylized letter 'a' and modern graphic element. The letter represents Audit, which in turn is the main function of the National Audit Department. The letter is also the first letter in the alphabet and mirrors organizational excellence. The orbit on the other hand depicts the readiness of the National Audit Department to face the challenges of globalization while the diamond symbol represents the steadfastness of this organization in realizing the Nation's Vision. The yellow color represents the sovereignty of the king, the source of power of the National Audit Department. Maroon symbolizes the image and identity of the National Audit Department and blue represents the spirit of teamwork that is the philosophy of the employees of the Department. Red on the other hand, symbolizes the high spirit of the employees of the National Audit Department.

The first National Audit Department logo consisted of a shield and a divider with 13 stars representing the 13 different states in Malaysia. The Parliament Building is featured under the stars representing the place where the report of the Auditor General is tabled. The scales on top of the stars signify the principles of justice on which the activities of the Department are based. The book, keys and pen symbolize the accounting record for public funds kept by the Treasury and audited by the Department. This logo was used for 30 years until the year 2002.

Auditor General's Reports

From 1906 until 1959 the Auditor General's Reports were prepared in English. It was only in 1960 that the Auditor General's Report was prepared in two languages; English and Malay. Gradually after 1960, the audit reports were prepared in Malay. The earliest record of printed Auditor General's Report was in 1920. The format of the report gravitated more towards the verification of the financial statements figures and issues related to those statements. In the year 2000, the National Audit Department revised the format and contents of the Auditor General's Report by emphasizing on balanced reporting. Through this format, the Auditor General's Report not only highlight on the weaknesses of Governmental Agencies, but also the positive actions and improvements that were carried out. This approach has so far fostered better cooperation between auditors and auditees and successfully created a conducive audit environment as well as improving the process of auditing and reporting.

Technical Details

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