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Malaysia Audit2023-11-10T16:28:48+08:00

Auditing is a systematic examination and verification of a company’s financial records, transactions, and operations to ensure the financial statements present a true and fair view of the company’s financial position. Section 267 of the Companies Act 2016 makes it a requirement for private companies to appoint auditors for each financial year, unless exemption has been given by the Registrar. With our expertise, we ensure compliance with regulations, independent assessments of financial statements, identify risks and offer recommendations for process improvement.

Malaysia Auditing Services

Auditing plays a vital role in establishing brand credibility and mitigating the risk of fraud within companies. In Malaysia, every company is obligated to prepare and conduct audits for their financial statements prior to submission to the Companies Commission of Malaysia (SSM). Our audit services in Malaysia encompass a wide range of areas to cater to the specific needs of your organization.

These include:-

  • Conducting Annual Financial Audits to ensure compliance with accounting standards;
  • Performing Special Purpose Audits tailored to unique circumstances;
  • Providing Certification for Subsidy Claims to validate eligibility;
  • Conducting Fixed Assets Certifications to verify asset values;
  • Issuing Claim Certifications for accurate reimbursement claims;
  • Offering Shares Certifications for transparent ownership records; and
  • Providing Personal Income Certifications for individuals.
Reasons for company audit

Audit Exemption: Are You Qualified?

Private companies in Malaysia are mandated by the Companies Act 2016 to appoint an auditor for each financial year to conduct audits on their financial statements. However, the Companies Commission of Malaysia (SSM) introduced an audit exemption practice directive in 2017, outlining specific criteria that would exempt certain private companies from the requirement of appointing an auditor.

There are three categories of private companies that qualify for audit exemption:

1. Dormant Companies

A company is considered dormant if it does not engage in business activities and has no accounting transactions, except for transactions related to legal obligations and compliance costs. To qualify for an audit exemption, a dormant company must meet one of the following conditions: it has been dormant since its incorporation, or it has remained dormant throughout the current financial year and the immediately preceding financial year.

2. Zero-revenue Companies

Zero-revenue companies are eligible for audit exemption if they meet the following criteria: they have not generated any revenue during the current financial year, they have not generated any revenue in the immediate past two financial years, and the total assets stated in their current Statement of Financial Position, as well as in the Statement of Financial Position for the past two years, do not exceed RM300,000.

It’s important to note that revenue, for the purpose of audit exemption, excludes certain types of accounting entries such as tax-related entries, reversals of provisions, and gains from the derecognition of property, plant, equipment, and investment property in the Statement of Comprehensive Income.

3. Threshold-qualified Companies

Threshold-qualified companies can qualify for audit exemption if they meet the following conditions:

  • their revenue receivable during the financial year does not exceed RM100,000, as well as in the immediate past two financial years;
  • the total assets stated in their current Statement of Financial Position;
  • the Statement of Financial Position for the past two years, do not exceed RM300,000; and
  • the company does not have more than five employees at the end of their current financial year, as well as in the past two financial year ends.

6 Reasons Why You Should Conduct a Company Audit

Conducting a company audit, even if you are exempted, offers numerous advantages that should not be overlooked. When you engage an audit firm in Malaysia, you can expect the following six benefits:

Your Questions, Answered

Extend your understanding about audit in Malaysia and the services that audit firms provide with these top questions that we get asked most.

Are audit reports confidential?2023-07-28T16:10:07+08:00

Audit reports are generally confidential and intended for the company’s management, shareholders, and other authorized stakeholders. However, certain situations may require the disclosure of audit findings to regulatory bodies, tax authorities, or other relevant parties as mandated by law. It is essential to clarify the confidentiality terms and limitations with the audit firm before engaging their services.

Can an audit uncover fraud within my company?2023-07-28T16:08:16+08:00

Yes, audits play a crucial role in detecting and preventing fraud within organizations. External auditors are trained to assess internal controls and identify potential red flags or irregularities in financial statements. Through their review of financial records, transactions, and supporting documentation, auditors can uncover discrepancies or patterns that may indicate fraudulent activities. Audits serve as a deterrent to fraudulent behavior and provide assurance to stakeholders that appropriate measures are in place to safeguard company assets.

What is the difference between a financial statement audit and a compliance audit?2023-07-28T16:06:08+08:00

A financial statement audit focuses on verifying the accuracy, completeness, and fairness of the financial statements prepared by a company. It involves examining financial records, transactions, and supporting documentation to provide an opinion on whether the financial statements present a true and fair view of the company’s financial position and performance.

What are the benefits of hiring an external audit firm?2023-07-28T16:03:56+08:00

Hiring an external audit firm brings several benefits to your company. Firstly, it provides an independent and unbiased assessment of your financial statements, enhancing their credibility and reliability. External auditors bring specialized knowledge and expertise, ensuring compliance with accounting standards and regulatory requirements. They also offer valuable insights and recommendations for improving internal controls, risk management, and operational efficiency. Additionally, engaging an external audit firm demonstrates your commitment to transparency and accountability to stakeholders.

How do I choose the right audit firm for my company?2023-07-28T16:02:15+08:00

Choosing the right audit firm is crucial for obtaining accurate and reliable audit services. Consider factors such as the firm’s reputation, experience, expertise in your industry, size, resources, and the qualifications of their auditors. It is advisable to request proposals from multiple firms, conduct interviews, and assess their understanding of your company’s needs and regulatory requirements. Selecting a reputable and compatible audit firm ensures a smooth and effective audit process.

What happens after the audit is completed?2023-07-28T15:59:02+08:00

Once the audit is completed, the audit firm will issue an audit report summarizing their findings, opinions, and recommendations. The audit report will be provided to the company’s management, shareholders, and other relevant stakeholders. The management will review the report, address any identified issues, and take appropriate actions to improve processes, controls, and financial reporting.

When is an audit required for my company?2023-07-28T15:57:31+08:00

The requirement for an audit depends on various factors, including the legal and regulatory framework of your jurisdiction, the type and size of your company, and specific thresholds set by relevant authorities. Generally, larger companies, public companies, and those with significant external financing or public interest obligations are more likely to require audits. It is essential to consult with professional auditors or regulatory bodies to determine the specific audit requirements for your company.

Why is auditing important for my company?2023-07-28T15:53:55+08:00

Auditing is crucial for several reasons. It provides an independent and objective assessment of your company’s financial statements, ensuring their accuracy and reliability. Audits help detect and prevent fraud, identify areas of financial risk, and provide assurance to stakeholders, including shareholders, investors, and creditors. Additionally, audits promote transparency, compliance with legal and regulatory requirements, and good corporate governance.

What is the difference between an internal audit and an external audit?2023-07-28T13:32:22+08:00

An internal audit is conducted by professionals within the organization and focuses on evaluating and improving internal controls, risk management, and operational processes. Internal auditors provide insights and recommendations to enhance efficiency, effectiveness, and compliance within the company.

What are auditing services?2022-07-07T16:04:37+08:00

Auditing services are professional services that provide compliant financial statements and ensure that the finances are in order before communicating to key stakeholders.

How often do companies need to be audited?2022-07-07T16:04:23+08:00

Every company must have its financial statements and accounting records audited at least once a year. Only companies which fulfil the criteria for audit exemptions do not have to be audited.

Who should appoint an Auditor in the company?2021-06-07T18:09:11+08:00

Every company is required to appoint an auditor at any time before the first annual general meeting. It is the directors’ responsibility to appoint auditors and this can be made by either a circular resolution of the board or at a board meeting.

The auditor’s term is until the conclusion of the annual general meeting (AGM). If directors have not appointed an auditor, the shareholders may appoint the auditors at a general meeting.

 

When do I need to conduct an audit?2021-06-04T18:06:44+08:00

You should start after your financial year end. The deadline for filing of your annual returns with audited financial statements is within 18 months from the date of incorporation and 6 months after your financial year end.

How long does an Audit usually take?2021-06-04T18:06:37+08:00

Depending on volume and complexity of transactions, an audit can take a few weeks for SMEs or months in complex cases.

What are the required documents for Audit?2021-06-04T18:06:25+08:00

All accounting records and Financial statements in XBRL format of reporting based on the Malaysian Financial Reporting Standards (MFRS) and Malaysian Private Entities Reporting Standards issued by MASB under the Financial Reporting Act 1997.

Your Trusted Audit Firm in Malaysia

As a trusted audit firm in Malaysia, Paul Hype Page brings a wealth of experience to the table, enabling us to provide government-approved audit reports that meet your company’s specific needs. Our team of professional auditors is well-equipped to handle your company’s audit function, ensuring a thorough assessment of your financial records and internal controls.

With a strong understanding of regulatory requirements, our auditors adhere to the highest standards of accuracy, transparency, and compliance. We meticulously examine and verify all relevant information, delivering comprehensive evaluations of your company’s financial position and performance. Our commitment to professionalism and integrity ensures that your audit is conducted in full compliance with applicable laws and guidelines.

Beyond compliance, our audits offer valuable insights and recommendations for enhancing financial management practices, identifying cost-saving opportunities, and improving operational efficiency. We take a proactive approach, providing personalized advice and guidance to support your business growth. At Paul Hype Page, we prioritize clear communication, timely report delivery, and building strong client relationships based on trust and mutual understanding.

Partner with Paul Hype Page for your audit requirements and benefit from our expertise, professionalism, and unwavering commitment to delivering exceptional audit services tailored to your company’s unique needs. Place your trust in us to handle your audit function, and gain confidence in the accuracy and credibility of your financial information.

A team of professional auditors who can handle your company’s audit function

A comprehensive range of audit services tailored to your specific needs

Clear communication, timely report delivery, and strong client relationships

Adhering to the highest standards of accuracy, transparency, and compliance

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