31 research outputs found

    Integrating Technology in Government Internal Audit: Catalysts and Challenges

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    In an era marked by digital transformation, various sectors, including government entities, are reevaluating their operational methodologies. This research delves into the pivotal elements influencing the adoption of Information Technology (IT) within the internal audit departments of governmental agencies. The study is grounded in detailed interviews conducted at three distinct government organizations, revealing the intricate dynamics of incentives, barriers, and the prospective benefits associated with IT integration. Preliminary results suggest that a myriad of factors critically shape the strategy toward IT implementation. These include the anticipated enhancements in audit efficiency and effectiveness due to IT adoption, the level of support from senior management, budgetary constraints, and the lack of specialized IT expertise. The findings offer insightful recommendations for government bodies, aiming to aid them in navigating the complexities of IT integration. This study not only highlights the significant role of supportive leadership and resource allocation in facilitating IT adoption but also underscores the need for skill development in this domain. Ultimately, it serves as a strategic guide for government agencies to optimize their auditing processes through effective IT integration

    Fraude de perfiles cometido por empleados del sector público: evidencia de los informes de los medios de comunicación de Malasia

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    This study investigated the type and frequency of media reporting on fraud among the PSE reported by the mainstream newspapers in Malaysia. The study also revealed the type of media reporting on fraud according to agencies and the states where the fraud cases took place. To achieve the objective of this study, a qualitative approach by content analysis over fraud cases reported online through websites of the respective mainstream newspaper agencies were scrutinized. The findings show that the English medium newspapers reported more fraud cases involving the PSE compared to the Bahasa Malaysia medium newspaper. The highest media reporting on fraud was fraud cases involving Sabah Water Department (SWD), while the highest fraud cases were reported among the state government, followed by the federal government and local authority.Este estudio investigó el tipo y la frecuencia de los medios de comunicación que informan sobre el fraude entre los PSE informados por los principales periódicos de Malasia. El estudio también reveló el tipo de medios de comunicación que informan sobre el fraude según las agencias y los estados donde se produjeron los casos de fraude. Para lograr el objetivo de este estudio, se examinó un enfoque cualitativo mediante el análisis de contenido sobre los casos de fraude informados en línea a través de los sitios web de las respectivas agencias de periódicos. Los hallazgos muestran que los periódicos medianos en inglés reportaron más casos de fraude relacionados con el PSE en comparación con el periódico mediano Bahasa Malasia. Los medios más altos que informaron sobre el fraude fueron los casos de fraude relacionados con el Departamento de Agua de Sabah (SWD), mientras que los casos más altos de fraude se registraron en el gobierno estatal, seguidos por el gobierno federal y las autoridades locales

    Money Laundering: A Review of Literature and Future Research

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    Money laundering is one of the financial crimes that has become a major concern in most countries worldwide. The rising number of reported instances of money laundering could be driven by several reasons. With this growth, there is a growing academic interest in money laundering research; therefore, opportunities should be created for interested academics to evaluate the evolution of research in this field. This study was intended to evaluate published studies in this field from the origin of the idea of money laundering to the present to identify major trends or issues in money laundering research and to propose a research agenda for the future. A qualitative research design was adopted using a content analysis approach. It was found that most of the research focuses more on the relationship of money laundering with other offenses and the detection methods but lacking in the understanding of money laundering and the rules and regulations related to money laundering. This study is intended to be useful to current and future scholars in the field of financial crimes who are interested in the evolution of the literature and in identifying areas for future researc

    Evaluating Audit Oversight Board’s Regulatory Impact: Analysis of Sanctions Imposed on Malaysian Audit Firms

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    This study analyzes the 12-year trend of cases involving auditor wrongdoing as disclosed on the Audit Oversight Board (AOB) Malaysia's website from 2012 to 2023. Utilizing content analysis, the research examines the nature, frequency, and severity of penalties or sanctions imposed on audit firms for various offenses. Findings indicate a dynamic pattern of regulatory actions, reflecting Malaysia's evolving landscape of audit quality and regulatory oversight. It was revealed that a total of 56 breaches of the Securities Commission Act 1993 involving 30 audit firms were reported and disclosed by the Audit Oversight Board over the period from 2012 to 2023.  The findings revealed that most misconduct cases relate to the failure of audit firms to comply with the requirements of International Auditing Standards, International Standard on Quality Control and Malaysian Institute of Accountant By-Laws. There has been a notable decrease in cases involving auditors over the past six years. This could also indicate the dedication of the AOB to monitoring auditors' conduct to prevent their involvement in malpractice. This study contributes to the understanding of audit regulation effectiveness and the behavioral patterns of auditors in response to regulatory scrutiny

    Corporate social disclosure: an analysis of the employee disclosure and their relation to the industrial law cases in Malaysia from year 2004 to 2008 / Rafizan Abdul Razak, Zaleha Mahat and Nor Aishah Mohd Ali

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    Most of the corporate social disclosures research conducted on the employees issue in Malaysia are confined to the nature, quality and quantity of disclosure in the companies' annual reports; however, none has been noted to have been discussing the relationship between the employee disclosure and the Industrial Law cases in Malaysia. Thus, by using content analysis method, this study analysed the annual reports of two sector listed in Bursa Malaysia (Industrial Product and Finance) for the purpose to identify the trend of the employee disclosure in companies annual report from the year 2004 to 2008, the extent of those disclosures as well as to establish whether there is any association between the employee disclosure and the Industrial Law cases in Malaysia related to the disclosures. The results of the analysis reveal that there is an increasing trend in terms of number of sentences disclosed on employee disclosure in the companies' annual reports. The most disclosed theme is the Pay and Benefits. This is not surprising as such item is a mandatory item to be included as part of company's Statement of Comprehensive Income as required by the Financial Reporting Standard (FRS) 119. In terms of the extent of the disclosure, most companies have at least disclosed some form of information on employees with most companies disclosing between 1 to 50 number of sentences for all employees sub-themes. The study has also established that there is no significant relationship between the employee disclosure and the Industrial Law cases in Malaysia except for disclosures on 'Duties on Employee subtheme which shows a significant positive relationship with number of Industrial Law cases reported which is related to this theme. Such situation may not be a desirable situation for companies and this finding is inconsistent with what has been postulated in legitimacy theory where when such disclosures are made, companies always seek to show their positive contribution to the society by legitimizing their activities in order to protect the corporation's self-interest

    Empowering Whistleblowing Policy within Public Listed Companies: Current Practice in Malaysia

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    Whistleblowing is an act of disclosing any unethical or questionable act within an organization by disclosing them to individuals, the public or authorities that could influence the wrongdoing. It became an important part of the corporate governance process as such action would benefit society and the organization. With the increase in whistleblowing cases involving publicly listed companies (PLCs) by the mass media in Malaysia, there is a dearth of information on to what extent these PLCs manage whistleblowing matters. As a general practice, albeit not compulsory, many publicly listed companies disclose whistleblowing statements in their annual report. As this aspect of corporate governance for the employees is still unexplored, this study purports to explore the form of disclosure on whistleblowing policy by publicly listed companies in Malaysia for the financial year ending 2021.  This study is a content analysis of 918 annual reports of companies listed in Malaysia.  The findings reveal that most of the companies disclosed matters relating to whistleblowing policies in their Statement of Corporate Governance section, established whistleblowing policies, and mentioned the importance of whistleblowing activities within sections in their annual reports. This study focuses on companies’ annual reports. Future studies could be conducted to assess whistleblowing disclosure in other mediums such as the official websites of the companies. The study explored the aspect of corporate governance for the employee as practiced within publicly listed companies in Malaysia. The findings revealed the companies’ best practices for promoting transparency and accountability within organizations

    Drivers of capital structure in Malaysian Real Estate Investment Trust Funds (M-REITs)

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    This study investigates drivers of capital structure decisions of Malaysian Real Estate Investment Trust Funds (M-REITs) using 121 observations from 15 REITs companies listed in the Bursa Malaysia during 8 years study period of 2011 to 2018. Employing the panel data regression model, the result indicates that operating risk is significantly negatively related to leverage suggesting that M-REIT firms with higher uncertainty of earnings opt for low leverage as it reduces their risk of bankruptcy. Consistent with pecking order theory, profitability is reported to have significantly negatively related to leverage implying that M-REITs with higher (lower) profits have lower (larger) debt albeit this industry is expected to have low retained earnings. Contrary to the trade-off theory, the asset tangibility is significantly negatively related to leverage indicating that M-REITs with higher fixed assets opt for lower debt. The uniqueness of M-REIT regulation could be the justification for this result

    Materiality in reporting of Shari’ah non-compliant income for Malaysian Islamic Banking Institutions / Norhanizah Johari … [et al.]

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    Materiality in financial reporting is concern with whether an omission or a misstatement of such information would influence the economic decisions of financial statements users. An item is considered material, if it is capable of making a difference in the economic decision made by a user. Thus, materiality should be assessed not only in relation to the size of an item, but also to the nature and incidence of the item occurring. An item that is otherwise insignificant in size may be a material item. Therefore, judgments is required in deciding which items shall be considered as material or immaterial. Information is material if omitting it or misstating it could influence the decisions made by the primary users of a specific reporting entity. In other words, materiality is an entity-specific aspect of relevance based on the nature or magnitude, or both, of the items to which the information relates in the context of an individual entity’s financial report. This newly definition on materiality issued by MASB in 2018, will be referred as a basis of comparison with the previous concept of materiality issued by the board before. This study will explore how the concept of materiality viewed by the Islamic Banking Institutions (IBI) in Malaysia particularly for the reporting of the Shariah Non-Compliant Income in the IBIs annual report for the year 2016 until 2018. It is expected that the findings will embark on the materiality as a very important element of reporting particularly in the reporting of SNCI for the sustainability of the IBIs. The outcomes of this study is expected to benefit the policy makers, the IBIs, the accounting profession and the financial statement users with regards to the financial reporting of IBIs in Malaysia, where materiality of SNCI is the central issue of discussion of this paper

    An Exploration of Accounting Student’s Perspective on Factors Influencing Audit Career Choice

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    This study aims to explore the factors influencing undergraduate accountancy students at Universiti Teknologi MARA Melaka branch to pursue careers in auditing. A structured questionnaire, distributed to participants via Google Forms, was employed to gather feedback from the students. The participants, categorized based on their academic levels, represent various stages of both theoretical and practical exposure to auditing subjects. The research team administered a questionnaire to evaluate accounting students' perceptions and intentions on the factors influencing careers in auditing. There is a strong positive correlation between job security and career intention followed by career development and a moderately significant positive correlation between job satisfaction and financial reward toward students’ intention to become auditors. A general lack of interest in the profession and concern about work-life balance contribute to the challenges of not pursuing a career in audit. Students perceived that real exposure to the auditing profession via academic visits, engaging experts through seminars, and interactive teaching methods could bridge the gap between academic learning and professional practice. Enhancing the alignment of educational offerings with industry requirements and students’ career aspirations with curriculum development, enhancing teaching methods, and partnerships between academia and industry will assist accounting students in developing a positive view of auditing careers and better preparedness for their future careers in this field
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