KUALA LUMPUR: The implementation of global internal auditing standards will help enhance Malaysia’s competitiveness, said Institute of Internal Auditors Malaysia (IIAM) president Mohd Khaidzir Shahari.
He emphasised that Malaysia has the potential to rise from fifth place among 12 Asia-Pacific markets in the Corporate Governance Monitoring Report 2023, due to companies’ commitment to adopting the Global Internal Audit Standards, which will come into effect on Jan 9, 2025.
“The global standards, which are based on 15 guiding principles, enable boards of directors, management, and other functions to collaborate with internal auditors to address challenges and seize opportunities.
“These standards provide guidance for regulatory bodies to align with international best practices and enhance governance in areas such as environmental, social and governance (ESG), as well as cybersecurity,” he said in a media session at the IIAM National Conference 2024 today.
He said that with increasing complexity and sensitivity, SMEs need to strengthen their integrity, transparency, and trust. “This is a crucial step in building quality and sustainable businesses.”
Mohd Khaidzir said internal auditors play a key role in ensuring organisations are sustainable and ethical.
“They are vital in the long term by establishing a competitive governance framework and adapting to the complexities of the digital age, cybersecurity threats, and sustainability challenges.
“Since 2008, the government has mandated that publicly listed companies establish an internal audit function to provide robust assurance of transparency through corporate governance,” he said.
However, he remarked that compliance with global internal auditing standards is voluntary, which exposes many organisations to unwanted risks and unrealised value.
“The new global standards set minimum requirements for internal audits to be implemented, regardless of whether they are in the commercial or public sector, or whether they are from large or small organisations.
“Consistently implementing these standards will enhance the profession and foster trust, reliability, and confidence in the work of internal auditors worldwide,” said Mohd Khaidzir.
He disclosed that IIAM currently has 3,432 individual members and 265 corporate members, a number that remains relatively low compared to the estimated 100,000 internal auditors in the country, and about 1,000 companies listed on Bursa Malaysia.
Commenting on ESG certification, Mohd Khaidzir said IIAM has awarded globally recognised ESG certificates to more than 95 internal auditors.
“IIAM will launch more readiness programmes in the coming year, including fostering closer collaboration with regulatory bodies, relevant professional organisations, and private institutions to enhance the profile of the internal audit profession in Malaysia,” he added.
