The study looked at politically connected companies in Malaysia and found that they are seen as riskier and have poor corporate governance. Tighter regulations have made audit committees and internal audit functions more important in these companies. Interviews with regulators, external auditors, and internal auditors showed that these companies are following the rules better since 2008. This means that the corporate governance rules are working. The involvement of audit committees and internal audit functions in improving internal controls leads to higher audit quality and fees.