Author
Listed:
- Ainol Sarina Ahmad Zazili
- Nor 'Asyiqin Abu
- Siti Aisyah Basri
- Enylina Nordin
- Wan Shafizah Hussain
Abstract
This study examines internal control challenges in Malaysian government projects, drawing on Public Accounts Committee (PAC) reports from 2019 to 2022. The focus on this period stems from the shift in PAC chairmanship from government to opposition, which enhanced perceived independence. However, the literature suggests that the PAC’s success depends more on collaborative decision-making than on the chairman’s political affiliation. Analyzing 29 government agencies across various sectors revealed recurring weaknesses in internal controls. The study employed the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control-Integrated Framework (ICIF) to systematically identify these weaknesses. A content analysis method was used to examine the themes, which were grouped into five ICIF components: control environment, risk assessment, control activities, information and communication, and monitoring. Weaknesses in the control environment include conflicts of interest, compromised ethical values, inadequate governance, and a lack of accountability and transparency. Risk assessment deficiencies were found in financial risk management, procurement and acquisition risks, geopolitical and strategic risks, intellectual property and technology risks, and project management risks. Control activity weaknesses involved poor resource and process management, non-compliance, and flawed decision-making. Information and communication issues included poor documentation, inadequate system integration and data sharing, limited stakeholder engagement, weak communication protocols, and poor information management. Monitoring deficiencies were noted in regulatory compliance, contract management, financial oversight, monitoring systems, and disbursement tracking. Addressing these weaknesses in internal controls is crucial for minimizing the risks of fraud, waste, and loss of public trust
Suggested Citation
Ainol Sarina Ahmad Zazili & Nor 'Asyiqin Abu & Siti Aisyah Basri & Enylina Nordin & Wan Shafizah Hussain, 2024.
"Evaluating Internal Control Mechanisms in Malaysian Public Sector Initiatives: Insights from the Public Accounts Committee (PAC) Reports,"
Information Management and Business Review, AMH International, vol. 16(3), pages 924-936.
Handle:
RePEc:rnd:arimbr:v:16:y:2024:i:3:p:924-936
DOI: 10.22610/imbr.v16i3(I)S.3941
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:16:y:2024:i:3:p:924-936. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.