ISSN: 2225-8329
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An internal control system is a crucial system and governance aspect in public organisations. It serves as a defender, protector, guide, and alarm for any discrepancies or red flags. Each organisation must have such a system. Hence, it is vital for organisations, especially public sector organisations, to instil an internal control system. However, what is the level of internal control system, specifically in Malaysian statutory bodies. Thus, this study focuses on analysing the internal control system in Malaysian statutory bodies and whether they have what all the proposed global standards of the internal control system want. As recommended by COSO and INTOSAI, there are five elements of the internal control system: control environment, risk assessment, control activities, information and communication, and monitoring. The study collects data by distributing questionnaires to all Chief Executive Officers of statutory bodies. 194 out of 291 questionnaires were successfully gathered. Each element was above average, and the overall mean of the internal control system scored 5.597 out of seven scales. This shows that Malaysian statutory bodies follow the standard and procedures of the global internal control system framework. Hence, the current internal control system should be maintained and enhanced further through top management commitment and information system. So,there is still room for improvement to obtain a higher score. A sound and robust internal control system reflect good governance, especially in public sector organisations. Eventually, it helps to achieve high performance and accountability.
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In-Text Citation: (Yahya et al., 2022)
To Cite this Article: Yahya, N., Said, J., Zakaria, N. B., & Fuad, M. F. M. (2022). Analysing the Internal Control System in Malaysian Statutory Bodies: How Well Do They Adhere to the Global Standard? International Journal of Academic Research in Accounting Finance and Management Sciences, 12(3), 612–625.
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