JAN Continues To Strengthen Role As Free National Audit Institution

KUALA LUMPUR, Oct 5 (Bernama) -- The National Audit Department (JAN) continues to strengthen its role as a free, professional, and integrity-driven national audit institution.

It said in statement regarding the National Audit Department Report (LKAN) 2/2026 today, that post-amendment to the Audit Act 1957, JAN's audits now focus not only on compliance but also on significant and impactful issues to ensure that public funds are managed prudently, transparently, and benefit the people.

JAN also expands the reach of auditing through the e-SelfAudit System, with 1,856 other bodies including government-owned companies at the federal and state levels being audited starting in 2025.

"This implementation strengthens the coverage of oversight, transparency, and accountability of entities responsible for managing public interests," according to the statement.

LKAN 2/2026 regarding the Federal Government Financial Statements for the Year 2025, Activities of Federal Government Ministries/Departments and State Government and State Agency Financial Statements, Activities of State Ministries/Departments/Agencies and State Government Company Management were presented in the Dewan Rakyat today.

According to JAN, the Auditor General's Certificate on the Financial Statements is prepared under the mandate of the Auditor General under the Audit Act 1957 [Act 62] with preparation guided by the National Audit Department's auditing guidelines developed based on the International Standards of Supreme Audit Institutions (ISSAI), as far as adopted by JAN.

The statement mentioned that there are two types of Audit Opinions that can be given on the audited Financial Statements, namely, Unmodified Opinion and Modified Opinion.

"Unmodified Opinion may include an Emphasis of Matter paragraph when there are important matters related to the Financial Statements that need to be reported for user understanding.

"The Paragraph of Affirmation of Matters does not change the Opinion Without Reprimand and cannot be interpreted as a Reprimanding Opinion. The Other Matters paragraph was also removed to refer to other important governance and administration matters," according to the statement.

In addition, the Key Audit Matters paragraph can be issued covering significant issues in the current year that have been communicated to those responsible for governance.

A Modified Opinion is given on Financial Statements that do not present a true and fair view due to material misstatements, and the Auditor General faces constraints that prevent them from expressing their opinion.

Modified Opinions consist of Reprimanding Opinions, Contradictory Opinions, and Denials.

-- BERNAMA