Malaysian study finds shortfalls in internal audit among listed firms

Kuala Lumpur

THE Institute of Internal Auditors Malaysia (IIAM) has urged public-listed companies to strengthen their internal audit (IA) functions, following a study that has uncovered shortcomings in the process, such as underqualified auditors and insufficient resources to cover the scope of the work.

Weaker economic conditions have prompted businesses to cut costs where they can - and the IA process appears not to have been spared. A year-long study commissioned by the IIAM last year, based on the annual reports of 785 main-market public-listed companies, found that more than half (54 per cent) outsourced their IA function, with the remainder doing it in-house.