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”).