As part of the requirements under the Company Act of Malaysia, an annual audit report is mandatory for every private limited company (‘Sdn Bhd’).
The laws in Malaysia also require that a company’s annual audit must be performed by an approved company auditor or audit firm. The approved company auditor is an independent party, particularly there is a clear distinction between an accounts personnel engaged to perform accounting services and the auditor who form an independent judgement based on the financial reporting prepared by the client.
The audit engagement work revolves in testing procedures in order to obtain audit evidence about the amounts and disclosures in the financial statements. In the audit of financial statements, the objective is to enable the auditor “to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework”.
The important function of an audit report is to enable any stakeholders or 3rd party users of financial reports such as a banker, investor and/or venture partner who will rely on the credibility of the financial affairs being reported at any point in time before any financial decisions are made.
Our partners in Steve & Co Asia comprises of a group of qualified and experience independent auditors who may accommodate a scalable and extensive range of audit engagement services within a reasonable time frame.
According to the Companies Act of Malaysia, all business companies especially a private limited company, should do auditing every year and it is necessary that the company should appoint an auditor and submit the reports of all their accounting and finance audits to each and every member of the company. A statutory audit can be defined as the process of reviewing the company’s financial records to make sure they are legal and prompt. Like financial audit, a statutory audit helps in checking all the financial data, records and transactions of a company. In short, it gives an idea whether the company’s financial reports are accurate and fair.
Malaysia Audit Fees Changes
From March 1, 2010, Malaysia Institute of Accountants issued Practice Guide (RPG) 7 and started providing auditing services in Malaysia with a new fee table and structure for auditing. This is to manage the agreement charge and operation cost as well as to overcome the competence of other auditors. This helps all auditors to get paid appropriately as per their service levels and also strives to improve their service quality.