AUDIT FUNCTION, RISK MANAGEMENT AND THE SIGNIFICANCE OF AUDIT OPINION

Abstract

The objective of this concept study is to discuss and conceptualize the function of audit, risk management and the significance of audit opinion or audit reporting. In Malaysia, based on the Malaysian Code on Corporate Governance (MCCG), (2007; 2012 and 2017) clearly stated the role and responsibility of the auditor in corporate governance world. The existence of internal audit function for example is one of the crucial elements in corporate governance mechanism. Further, the existence of external auditor and audit committee in a company as a compliment to the function of an audit. Both internal and external auditors have their respective responsibilities in corporate governance world. For audit committee, it has the oversight function and as a board committee that monitoring the corporate governance as a whole. Although the full board of director is a top of rank in corporate governance element, the tasks of internal control, risks and any corporate governance issues are mandated to the audit committee