Introduction
The auditing of 1Malaysia Development Berhad (1MDB) represents one of the most significant and controversial episodes in Malaysia’s history of public financial accountability and governance. This chapter explores the circumstances surrounding the audit of 1MDB, beginning with the mandate given to the National Audit Department and the challenges encountered during the initial stages of the investigation. It provides a brief background of 1MDB before examining the preparation of the interim and final audit reports, the difficulties in verifying financial accounts, and the role of the Public Accounts Committee (PAC) in scrutinising the company’s financial management. Particular attention is given to allegations of interference and tampering with the audit report, as well as the subsequent punitive and legal actions arising from the controversy. Through these discussions, the chapter highlights the importance of auditor independence, institutional integrity, transparency, and effective oversight in safeguarding public funds and maintaining public confidence in government institutions.