The Internal Audit Unit (UAD) is an independent function, which provides certainty and objective consulting services to add value and enhance the operational level of the organization. Treasury Circular No. 2 of 1979, General Circular Letter No.3 of 1998 and Treasury Circular No.9 of 2004 have stipulated that each Ministry and Agency set up their respective UAD. In line with this power, UAD Johor Southeast Development Authority (KEJORA) was officially established in 2001. Since its inception, UAD has been directly responsible to the General Manager of KEJORA to ensure its independence and effectiveness.
The scope of UAD includes reviewing and evaluating the activities and operations of interested organizations, subsidiaries and subsidiaries. The terms of reference of UAD are as follows:
- Review the reliability and effectiveness of the financial system as well as the internal control of the organization;
- Review the level of compliance with all policies, laws, regulations and directives in force;
- Review organizational activities managed prudently, efficiently and effectively;
- Review the assets and interests of the protected organization in terms of loss, fraud and misappropriation;
- Provide advice / views on internal control of all systems including information technology systems;
- Review the risk assessment process in the organization if management has been established.
ROLES AND FUNCTIONS
UAD is responsible for conducting financial management audits and performance audits. The Financial Management Audit includes an examination of the financial system, internal controls and financial records to determine whether expenditure, revenue, assets and stores have been managed in accordance with relevant laws, regulations and instructions. Performance Audit, on the other hand, includes an evaluation of the activities of an organization to determine its goals have been achieved and resources are used prudently, efficiently and effectively. The UAD audit covers all Divisions / Units in KEJORA.
The functions of UAD are as follows:
- Prepare UAD Annual Plan
- Implementing the Audit Process
- Managing KEJORA Audit Committee Meetings
- Prepare UAD Annual Report
AKP LKW 2010 para 12.7 states the authority given to UAD as follows: –
- May request anyone to provide any explanation or information required while carrying out audit and investigation duties;
- Can search and / or obtain books / documents / records or extracts from books / documents / records at the audit office;
- Right to review all records, books, files, minutes, accounting documents, cash, stamps, securities, stores or other property subject to audit;
- May refer to a Board officer or public officer regarding the matter under investigation; and
- Can conduct audits either by notification or by surprise inspection from time to time.