Audit Act 1957

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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.

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.

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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

The expression “remuneration” in this Act shall have the meaning assigned to that expression in Article 160(2) of the Federal Constitution.

All payments made under the First and Second Schedules shall be charged on the Consolidated Fund.

the accounts of accounting officers of the Federation and of the

States;

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;

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.

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the accounts of—

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;

(Deleted by Act A558);

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

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examined, inquired into and audited unless he shall first have consulted the Menteri Besar or Chief Minister of that State.

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.

No fee shall be payable for an audit required in accordance with subparagraph (1)(d)(iv) and paragraph (1)(f).

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].

whether all reasonable precautions have been taken to safeguard the collection and custody of public moneys or other moneys subject to his audit;

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;

whether all accounts and other records have been and are properly and faithfully maintained;

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

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efficient manner with due regard for economy and the avoidance of waste or extravagance; and

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.

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;

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;

shall have access to all records, books, vouchers, documents, cash, stamps, securities, stores or other property subject to his audit;

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;

may authorize any public officer on his behalf to conduct any inquiry, examination or audit and to report thereon to him; and

may obtain the advice of a law officer upon any question of law.

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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.

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.

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.

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.

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

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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.

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.

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.

A copy of every report relating to the accounts of the Federation prepared in accordance with subsection (1) shall be transmitted by the

Auditor General to the Minister who, if the Dewan Rakyat be not then sitting, shall cause the statement and report to be published.

If at any time it appears to the Auditor General that any serious irregularities have occurred in the accounting or custody of public moneys or public stores under his audit, he shall immediately bring the matter to the notice of the Secretary General to the Treasury and, in the case of moneys or

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stores of a State or a public authority, to the notice also of the State financial authority or the head of that public authority, and the Auditor General may make any recommendation to address such irregularities.

The Auditor General may in any report submitted in accordance with

Article 107(1)

of the

Federal

Constitution or otherwise make recommendations and may generally comment upon all matters relating to public accounts, public moneys and stores.

The Auditor General shall submit a certificate and observations on the accounts of any separate fund established in the Federal Territory or a State under Article 97(3) of the Federal Constitution to the Yang di-Pertuan

Agong in the case of Federal Territory or to the Ruler or

Yang di-Pertua Negeri of the State or to such other authority as may be provided by Federal or State law.

Unless it is otherwise required by law or by direction of the Minister, where the Auditor General audits the accounts of any other authority or body he shall present his certificate and observations upon those accounts to the head of that authority or body and a copy thereof to the Minister or

Menteri Besar or Chief Minister responsible for that authority or body, and the Auditor General may, at any time before presenting such certificate and observation, bring to the notice of the head of the authority or body or the

Minister or Menteri Besar or Chief Minister responsible for that authority or body any matter which in his opinion requires immediate attention.

Notwithstanding the provisions of this section, the Auditor General may at any time submit a report to the Yang di-Pertuan Agong upon any matters arising out of the performance of any of his duties or the exercise of any of his powers under this Act or under any written law, and may submit a copy of any such report to the Ruler or Yang di-Pertua Negeri of a State or to a Minister.

The Auditor General may at any time submit a report on the follow-up audit conducted under subsection (1) to the Yang di-Pertuan Agong, and may submit a copy of such report to the Ruler or Yang di-Pertua Negeri of a State or to a Minister.

All regulations made under this section shall be laid before the Dewan

Rakyat at the next meeting after their making.

Where a person who is not a member of any of the public services is appointed as

Auditor General, his remuneration which shall not be pensionable shall, subject to

Article 105(5) of the Federal Constitution, consist of a salary of thirty-one thousand one hundred and forty ringgit per month and of such allowances and privileges as are payable or granted to him under the Second Schedule. In addition thereto, he may be granted such

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benefits on cessation of office as may be determined by the Yang di-Pertuan Agong by order in the Gazette upon his appointment as Auditor General.

Any order made under subparagraph (2) shall be laid before each House of

Parliament as soon as may be after it is made.

Pension, gratuity or other benefits for person ceasing to hold office as Auditor General in certain circumstances

in the case of a person referred to in paragraph 1(1), before attaining the age of optional or compulsory retirement; or

in the case of a person referred to in paragraph 1(2), before the expiry of his term of office as Auditor General, on the ground of inability, from infirmity of body or mind or any other cause, properly to discharge the functions of his office, he shall be entitled—

in the case of a person referred to in paragraph 1(1), to such pension or gratuity or both; or

Rates and allowances for travel on official duty within and outside Malaysia shall be as provided and specified by Government from time to time for an officer drawing an equivalent salary in the public service.

The Auditor General shall be eligible to have passage paid by Government for overseas travel to a destination of his own choice as provided by the

Government from time to time to an officer drawing an equivalent salary in the public service.