Internal audit


What is meant by “an internal audit function which is independent of the activities it audits” as referred to under paragraph 15.27 of the Main LR?

This means that the internal audit function of a listed issuer must be independent from the management and operations. A listed issuer must not allow or condone inter-management audit. For example, finance department performing audit on the other operation units within the group of a listed issuer. For the purposes of clarifying the phrase “independent of the activities of its audits”, reference may be made to the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors and the Internal Auditing Guidelines issued by the Malaysian Institute of Accountants (collectively referred to as “the Internal Audit Standards & Guidelines”).