Good governance is a precondition for competitiveness of a firm, market and economy. As part of the government machineries, local authorities also should observe and maintain good governance as they are entrusted with public money. Overseas literature has shown the importance of internal auditing in the management of local authorities. Additionally, local internal auditing literature also reveals the importance of internal auditing as important governance structure in organisation. With respect to internal audit function in Malaysia, Treasury circular 2/79 requires all government department including local authorities to establish internal audit department. It then was replaced by Treasury Circular 9/2004. The function and responsibility of internal auditors in government department are specified in that circular. This study provides empirical evidence on the existence and scope of internal auditing in Malaysian local authorities. The same variables used in the study done by Zakaria, Selvaraj and Zakaria (2006) are tested on internal auditors in Malaysian local authorities. The sample of this study consisted of head of internal auditor in local authorities of all states in the West Coast of the Peninsular Malaysia. Given the importance of internal auditing in every type of organisation, it is hoped that this study will benefit the institutions and its stakeholders in their effort towards establishing and maintaining good governance.
|Keywords:||Internal Auditing, Local Authorities|
Lecturer, Department of Accounting, International Islamic University, Kuala Lumpur, Wilayah Perseketuan, Malaysia
Lecturer, Department of Accounting, University Malaya, Kuala Lumpur, Wilayah Perseketuan, Malaysia
Head of Section, Students' Account, University of Malaya, Lembah pantai, Kuala Lumpur, Malaysia
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