|
Q：
|
What are the latest audit exemption criteria for Malaysia private companies?
|
|
A：
|
If the Malaysia Private Companies comply with any 2 of the following requirements then they shall be qualified for audit exemptions:
-
Does not exceed RM3,000,000 in annual revenue during the current financial year and last two financial years;
-
Does not exceed RM3,000,000 in total asset during the current financial year and last two financial years; or
-
Does not have more than thirty (30) total employees at the end of the current financial year and last two financial years.
|
|
Q：
|
What does the term 'employees' mean under the criteria for audit exemption?
|
|
A：
|
The term "employees" includes full-time staff, both local and foreign, as well as contract workers and those on their probationary period, at the end of each relevant financial year. It excludes:
-
Directors working as full-time employees;
-
Shareholders working as full-time employees; or
-
Family or friends working without regular pay or on an irregular wage basis.
|
|
Q：
|
Do dormant private companies still qualify for audit exemption?
|
|
A：
|
Yes, a private company that has been dormant since its incorporation, as well as those that have remained dormant in the current and previous two financial years, are still exempt from the audit requirement.
|
|
Q：
|
Would the Companies Commission of Malaysia (CCM) implement the new audit exemption criteria in stages?
|
|
A：
|
Yes, based on Practice Directive No. 10/2024 issued by the CCM, the new audit exemption criteria for private companies will be introduced gradually over a three years period, starting from 1 January 2025.
This phased approach enables companies to progressively adjust to the new requirements, ensuring that the eligibility criteria are suitable for businesses of different sizes.
|
|
Q：
|
What types of companies are excluded from eligibility for this audit exemption?
|
|
A：
|
The types of companies which are not eligible for audit exemption are as follows:
-
An exempt private company;
-
A private company that is a subsidiary of a company listed on a public stock exchange;
-
A public company; and
-
A foreign company.
|
FAQ
