Do I need an audit? Malaysia’s audit exemption thresholds explained
Not every private company must be audited. Here’s how audit exemption works in Malaysia and when a statutory audit becomes unavoidable.
The default: audit required
By default, every Sdn. Bhd. in Malaysia must have its financial statements audited by a licensed auditor each year. Audit exemption is the exception, granted to certain small private companies.
Who qualifies for exemption
Broadly, three categories of private company may qualify for audit exemption:
- Dormant companies that have had no accounting transactions
- Zero-revenue companies within their qualifying thresholds
- Threshold-qualified companies below set revenue, asset and headcount limits
When you’ll need an audit anyway
Once you cross the qualifying thresholds — or if a shareholder or regulator requires it — a statutory audit is needed. Voyage refers audit work to Muchen’s licensed auditors, with fees scaling by turnover and complexity, from about RM2,500 a year.
This is general guidance; confirm your exact position with a licensed professional.
Frequently asked questions
Is an audit compulsory for a Sdn. Bhd.?
By default yes, but small dormant, zero-revenue or threshold-qualified private companies may be exempt.
How much does a statutory audit cost?
It scales with turnover and complexity. Through Muchen, indicative fees start from about RM2,500 a year.
Who can carry out the audit?
Only a licensed audit firm. Voyage refers this to Muchen’s licensed auditors.
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