THE INDICATORS OF FRAUDULENT FINANCIAL REPORTING AMONG STATE GOVERNMENT AGENCIES IN MALAYSIA

Abstract

One of the three levels of government in Malaysia is the state government organisation. The public is concerned about the fund governance within the entity because government agencies use public funds to carry out their everyday operations. Following the audit report released by the Auditor General's Department is one of the ways to check that public funds have been used responsibly. This research seeks to identify the different types of audit reports issued by the Auditor General Department in response to the public's growing concern regarding the financial oversight of these government agencies. (AGD). In order to accomplish the study's goal, a qualitative method using content analysis was applied to five years of data from 2013 to 2017 for audit report credentials issued to the condition government and reported online through the websites of the Auditor General Department (AGD). The results demonstrate that Melaka state government agencies reported the greatest number of Qualified Report incidences, at 23. The research also showed that the most common crimes involve faking liabilities and expenses, as well as altering the value of assets. These reports, which cover a period of more than five years, may point to possible fraudulent financial statement components or warning signs that may have occurred within government agencies. Such a situation could damage the organisation's reputation for good financial management and reflect poorly on public sector government bodies.