RM4.8 billion variance not audit failure indicator, says former NAD chief

The discrepancy of approximately RM4.8 billion between the National Audit Department's report and PwC's independent examination does not constitute evidence of failed auditing, according to the former auditor-general.

The official clarified that the two sets of findings employed different methodological approaches to arrive at their respective conclusions regarding 1MDB's financial position. Such variations in audit methodology can result in different quantitative outcomes while both examinations remain professionally sound, the former audit chief explained.

The statement comes amid ongoing scrutiny of 1MDB's financial management and the various investigations and reviews conducted into the state-owned investment fund. The distinction between audit methodologies is significant, as it affects how auditors interpret, classify, and value financial data and transactions.

The clarification seeks to differentiate between divergent findings resulting from legitimate professional differences and evidence of audit negligence or failure. The National Audit Department's examination and PwC's subsequent review each followed established professional standards applicable to their respective assignments and scopes of work.

The matter remains subject to continued public and official attention as Malaysia's authorities continue their investigations into 1MDB's operations and financial dealings.