Majority of PLCs not spending enough for an effective internal audit function, IIAM

KUALA LUMPUR: The Institute of Internal Auditors Malaysia (IIAM) believes that a majority of public listed companies (PLCs) are not spending enough to ensure that their internal audit function is effective.
IIAM, which commissioned a study to construct the profile of the internal audit function and audit committees in Malaysian PLCs, said that 90% of PLCs that outsourced their internal audit functions paid RM100,000 or less in a year.
"The amounts incurred indicates that very junior staff or very few staff were in the audit team and a limited scope was covered," IIAM president Lucy Wong told reporters at a briefing today.
She said the low amounts is also a sign that the staff are not professionals and may not have the experience and skill set to effectively carry out the work, thus less is spent.
IIAM recommends that PLCs consider the professional qualifications, certification and experience of their outsourced service providers in relation to the scope of work required to ensure adequate coverage of risk areas and reliable reports are issued.