Audit Exemption Services and MBRS XBRL Filing in Malaysia

Audit Exemption in Malaysia: What Businesses Need to Know

In Malaysia, not all companies are required to undergo a statutory audit every year. Under the Companies Act 2016, certain small private companies may qualify for an audit exemption, which can save time and reduce compliance costs while still maintaining good corporate governance.

What is Audit Exemption?

Audit exemption allows qualifying companies to prepare financial statements without having them audited by a licensed auditor. This means the company can maintain internal records for business purposes without incurring statutory audit costs, as long as it meets specific criteria set by the Companies Commission of Malaysia (SSM).

Who Qualifies for Audit Exemption?

A private limited company (Sdn Bhd) can apply for audit exemption if it meets all the following conditions:

1. It is a private company (not a public company).
2. It qualifies as a small company, which generally means meeting two of these three criteria for two consecutive years:
   • Revenue not exceeding RM 50 million
   • Total assets not exceeding RM 50 million
   • Number of full-time employees not exceeding 50
3. The company is not part of a group of companies where the holding or subsidiary companies exceed these thresholds.

Benefits of Audit Exemption

1. Reduced Costs – No need to engage a licensed auditor, saving on professional fees.
2. Less Administrative Burden – Simplified financial reporting requirements for small businesses.
3. Focus on Growth – Free up resources to focus on business operations and expansion.

Requirements Despite Exemption

Even if exempted from statutory audit, companies must still:

• Prepare financial statements in compliance with Malaysian Financial Reporting Standards (MFRS).
• Submit annual returns and other required filings to SSM.
• Keep proper accounting records for at least 7 years.

Audit Exemption Services in Malaysia

At A. Razak & Co. PLT, we help Malaysian small businesses benefit from audit exemption while staying fully compliant with the Companies Act 2016. Audit exemption allows qualifying private limited companies (Sdn Bhd) to prepare financial statements without a statutory audit, reducing costs and administrative work.

Our Services

• Assess eligibility for audit exemption.
• Prepare accurate financial statements in line with MFRS.
• Provide guidance on annual filings and record-keeping.

Maximize efficiency and save on costs—consult A. Razak & Co. PLT for professional audit exemption services in Malaysia.