Audit
In Malaysia, statutory audits are mandated by the Companies Act 2016 for most private limited companies (Sdn. Bhd.). Annual audits help businesses maintain transparency, meet regulatory obligations, and build investor or stakeholder confidence.
Whether you’re a local entrepreneur or a foreign investor, proper auditing is not just about compliance, it's about understanding your company’s financial health and reducing business risks.
Who Needs an Audit in Malaysia?
✔️ Mandatory Audit
All companies incorporated under the Companies Act are required to appoint a licensed auditor, unless they qualify for audit exemption under criteria set by the Companies Commission of Malaysia (SSM).
✔️ Audit Exemption (SMEs)
As of 2025, companies may be exempted if they meet at least 2 out of 3 criteria:
-
Annual revenue less than RM1 million
-
Total assets not exceeding RM1 million
-
Not more than 10 employees
Foreign-owned companies are not exempt from audit even if dormant, unless specific exemption applies.
Our Services
When Do You Need to File Audited Accounts?
Description | Timeline |
|---|---|
Submission to SSM | Within 30 days after AGM |
Audit completion | 6–9 months after financial year-end |
Auditor appointment | Within 30 days of incorporation or AGM |
Financial year-end | Choose your closing month (e.g., 31 Dec) |
*Delays may result in SSM penalties or legal consequences.
Audit Requirements for Foreigners
Foreign individuals and corporations who incorporate a company in Malaysia (e.g., a 100% foreign-owned Sdn. Bhd.) often have limited presence in the country but are still legally obligated to comply with local audit laws.
Key Points for Foreign Owners
-
Audit is mandatory for most foreign-owned entities, even if:
-
The company is dormant
-
It has zero revenue or staff in Malaysia
-
The business operates entirely outside Malaysia
-
-
Audit exemptions are rarely available unless specific criteria are met
-
Failure to file audited accounts may lead to:
-
SSM penalties
-
Freezing of corporate bank accounts
-
Strikes off / enforcement actions
-
How We Help You
Audit-Ready Accounting
We’ll manage your monthly/yearly bookkeeping using data from bank statements, invoices, e-commerce platforms
Remote Audit Handling
We offer a 100% remote audit process for foreign owners. No travel needed. You’ll be guided via email or Zoom, with digital signature options for reports.
Multi-Currency & International Transactions
We’re experienced with businesses that operate with USD, SGD, EUR, CNY, and crypto. We assist in converting and classifying transactions in accordance with Malaysian Financial Reporting Standards (MFRS/MPERS).
Comprehensive Documentation
We provide:
-
Financial statements
-
Directors' report
-
Management letters
-
AGM preparation for SSM submission