The Internal Audit Section was set up in 1981 under the jurisdiction of Sabah State Treasury Department until 30 June 2000. Prior to 1982, this Section was known as Examination Unit to implement obligations of the State Treasury in line with the treasury’s instructions as below:
- To ensure that monitoring is done to reduce/avoid assets from missing due to fraud or negligence in all district treasuries, ministries and departments including self-accounting departments, local authorities, government agencies and statutory bodies.
- To report to the Ministry of Finance all findings with regards to public accounts that have been highlighted by others especially from the Internal Audit department
This Section was placed under the Ministry of Finance on the 1st of July 2000. This was based on the decision by the National Finance Council whereby all State governments are to set up an Internal Audit Section/Unit under the State Ministry of Finance.