Different audit methods behind RM4.8bil TH gap, says former auditor-general
Former auditor-general Tan Sri Dr Madinah Mohamad stated that the RM4.8 billion discrepancy in Lembaga Tabung Haji's financial reports stems from differing audit methodologies rather than failure to detect financial issues. She explained that the National Audit Department and PwC operated under different mandates and scopes.
Why it matters
Clarifying the reasons behind large financial discrepancies is crucial for public trust in national financial institutions and government-linked entities.
KUALA LUMPUR: Different audit methodologies were behind the RM4.8bil gap between Lembaga Tabung Haji's (TH) reported profit and its financial position review, says Tan Sri Dr Madinah Mohamad.
The former auditor-general said TH's audited financial statements by the National Audit Department showed a net profit of about RM3.4bil, while PricewaterhouseCoopers' (PwC) Financial Position Review reported a deficit or loss of about RM1.4bil.
"The difference in methodology and approach is what caused the two reports to produce different figures," she said.
She was speaking at the Musyawarah Nasional 2.0 forum themed Reality and Perception: Do Not Politicise TH here on Tuesday (Aug 25).
Madinah said the difference should not immediately be interpreted as evidence that the department's audit had failed to detect problems with TH's finances.
Instead, she said, the two reports had different mandates, objectives, scopes and methodologies.
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