The Auditor General: The Constitutional Officer the Constitution Protects From Government

Every year, a thick report is tabled in the Dewan Rakyat. It reviews how billions of ringgit of public money were spent — by ministries, state departments, statutory bodies and government companies. Its author is not an opposition politician or an independent body from outside government. It is a government officer whom the Constitution deliberately protects from being removed by the very government being audited.

That office is the Auditor General, and the power to do this does not come from administrative policy — it is written into the Federal Constitution itself.

At a glance

Office	Auditor General
Department	National Audit Department Malaysia
Constitutional basis	Articles 105–107, Federal Constitution
Statutory basis	Audit Act 1957 (Act 62)
Appointed by	Yang di-Pertuan Agong, on the advice of the Prime Minister, after consultation with the Conference of Rulers
Tenure protection	May not be removed except on the like grounds and in the like manner as a judge of the Federal Court
Reports sent to	Yang di-Pertuan Agong (federal level) and the Ruler/Yang di-Pertua Negeri (state level)
Reports tabled in	Dewan Rakyat, and the respective State Legislative Assembly

Appointment: Article 105

Article 105(1) provides that there shall be an Auditor General, appointed by the Yang di-Pertuan Agong on the advice of the Prime Minister and after consultation with the Conference of Rulers. This pattern resembles the appointment of the Attorney General — formal power rests with the Yang di-Pertuan Agong, but is exercised on advice.

A person who has held the office is eligible for reappointment, but is not eligible for appointment to any other office in the Federal or State service. This restriction prevents the office from being used as a stepping stone to other government positions.

The most important protection lies in tenure: the Auditor General may resign at any time, but may not be removed except on the like grounds and in the like manner as a judge of the Federal Court. His remuneration and terms of service, once appointed, may not be altered to his disadvantage. Provision for that remuneration is made by Parliament by law and charged on the Consolidated Fund — not subject to annual approval the way ordinary ministry expenditure is in the federal budget.

The combination of these features — appointment on advice, the restriction on subsequent office, and tenure protection equal to a judge’s — is designed for one purpose: to enable the Auditor General to audit the government without depending on the mercy of that same government.

Audit powers: Article 106 and the Audit Act 1957

Article 106 provides that the accounts of the Federation and the States shall be audited and reported on by the Auditor General. Additional duties may be conferred on him by federal law.

The Audit Act 1957 (Act 62) sets out that scope in detail. Section 1 of the Act states that it applies to the audit of the accounts of the Federation, the States and other prescribed public authorities. Section 5 sets the jurisdiction of that audit — covering the accounts of Federal and State accounting officers, as well as the accounts of bodies and entities that receive government grants or loans. Section 6 sets the standard for that audit: verifying whether proper controls exist over public money, whether expenditure was incurred under proper authority, and whether money has been applied for the purpose for which it was allocated.

Section 7, in turn, gives the Auditor General wide investigative powers — to summon anyone for explanations and information required, to access all relevant records, documents and property free of charge, and to examine witnesses on oath or affirmation. This power allows the National Audit Department to carry out its work without having to wait for permission from the entity being audited.

Where the report goes: Article 107

Article 107 sets the reporting path. The Auditor General shall submit his report to the Yang di-Pertuan Agong, who shall cause it to be tabled before the Dewan Rakyat. For a report relating to the accounts of a State, a copy is also sent to the Ruler or Yang di-Pertua Negeri concerned, for tabling in that State’s Legislative Assembly.

After tabling, the report is customarily referred to the Public Accounts Committee of the Dewan Rakyat for further scrutiny — a special parliamentary committee that examines public expenditure based on the Auditor General’s findings. This page focuses on the constitutional mandate of the National Audit Department itself, not the content of any specific report or finding.

Structure of the National Audit Department

The National Audit Department is headed by the Auditor General and supported by several divisions, among them:

• Office of the Auditor General — coordinates audit operations and departmental administration.
• National Audit Academy — trains officers in auditing, accounting, IT, management and international affairs.
• ICT Audit Division — plans and monitors audit studies of public-sector information systems.
• Legal Advisory Unit — provides legal advice and reviews contracts and memoranda of understanding.
• Technical Division — provides technical audit advisory services to sectors and state offices.
• Policy and International Relations Division — formulates audit policy, quality assurance and bilateral/multilateral relations.
• Integrity Unit — manages governance, detection, complaints and integrity compliance.
• Audit Follow-up Division — ensures audited entities carry out corrective action.

Types of audits

The National Audit Department carries out several different types of audits, each with a different purpose:

Audit type	Focus
Financial statement audit	Whether an entity’s financial statements give a true and fair view, and whether accounting records are properly kept up to date
Performance audit	The economy, efficiency and effectiveness of a government programme or activity
Governance audit	Compliance of systems and operations with prescribed governance
Government-company audit	Financial and operational performance of government-linked companies

Before an audit is carried out, an entrance conference is held with the audited entity to explain the objectives, scope and method of the audit — a procedural feature commonly mentioned in the department’s own FAQ.

Common mistakes

“The Auditor General is a Member of Parliament or a member of an independent body outside government.” The Auditor General is a public service officer protected by the Constitution, not an elected representative or an NGO.

“The Auditor General’s Report only covers federal ministries.” The mandate under Article 106 and the Audit Act 1957 also covers the accounts of State Governments, statutory bodies and other prescribed public authorities.

“The government can remove the Auditor General if it is dissatisfied with his report.” The tenure protection under Article 105 equates the grounds and manner of removal with those of a judge of the Federal Court — far higher than for an ordinary public service officer.

“The report is the final decision.” A report tabled in the Dewan Rakyat is customarily referred to the Public Accounts Committee for further examination and follow-up action.

What’s next

To understand the broader constitutional framework in which Articles 105–107 sit, start with the Federal Constitution, then see how reports are tabled and examined in the Dewan Rakyat. To understand the role of the Yang di-Pertuan Agong in appointment and the receipt of reports, refer to the Yang di-Pertuan Agong. For the context of the public money being audited, see the federal budget; and for another body that also investigates the misuse of public money, refer to MACC.

This page is descriptive and based on constitutional and statutory text. It is a draft and has not been reviewed by any named human reviewer.