Role of Auditors in Reducing Effects of Money Laundering: Concept Paper

Abstract

Money laundering has always been an issue not only to Malaysia but also around the world. Generally, the Government of Malaysia has enacted the anti-money laundering act as required by the Financial Action Task Force (FATF) in response to combating the money laundering issue. This paper ascertains the roles of auditors in reducing the effect of money laundering in terms of economic, social, and politic. By having the understanding, the recommendations are proposed to reduce the effect of money laundering and at once mitigate the money laundering activities through the job scope of auditors. Therefore, this study is focused on the roles of audit committees, internal auditors, and external for understanding to prevent money-laundering activities. This study also refers to International Auditing Standard; Section 600, 610, and 620. Additionally, this paper provides awareness to the reader on how money laundering could affect the country's sustainability through the economic, social, and political aspects.