Quick answer
A private company must appoint an auditor each financial year (Companies Act 2016, s.267) unless it qualifies for audit exemption. Under SSM Practice Directive 10/2024, a company is exempt if it meets two of three criteria for the current and previous two years — for financial years starting in 2026: revenue up to RM2 million, total assets up to RM2 million, and up to 20 employees (RM1 million / RM1 million / 10 in 2025; RM3 million / RM3 million / 30 from 2027). Dormant companies are also exempt. Audit fees are quoted on request.
Last reviewed： · Reviewed by：ONEKEY BIZ compliance team
01
Overview
An audit is an independent opinion on whether the company's financial statements give a true and fair view. For most Malaysian companies it is a legal requirement: Section 267 of the Companies Act 2016 requires a private company to appoint an approved company auditor for each financial year, and the audited statements are then circulated and lodged with SSM.
Not every company needs one. SSM Practice Directive 10/2024 lets qualifying private companies skip the audit if they meet at least two of three criteria — revenue, total assets and employees — for the current and the immediate past two financial years. The thresholds rise in phases: RM1 million revenue, RM1 million assets and 10 employees for years beginning in 2025; RM2 million, RM2 million and 20 in 2026; RM3 million, RM3 million and 30 from 2027. Dormant companies are exempt too.
Even exempt companies must still prepare unaudited financial statements and lodge them. And an audit may still be demanded by banks, tenders, licensing bodies or investors. We check exemption first, then either coordinate the audit or prepare the exempt-company filing.
Who needs this
- Companies above the audit exemption thresholds
- Companies needing audited accounts for banks, CIDB or tenders
- Companies unsure whether they qualify for exemption
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Documents you need to prepare
Accounts
- Complete bookkeeping records and trial balance
- Bank statements and reconciliations
- Fixed asset register
Supporting
- Sales and purchase invoices
- Contracts, loan agreements and tenancy agreements
- Payroll, EPF and SOCSO records
Exemption check
- Revenue, total assets and headcount for the last three years
- Audit exemption does not remove the duty to prepare and lodge financial statements.
- Complete books shorten the audit and reduce the fee.
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How to get it done with ONEKEY BIZ
- 1Exemption test Week 1
Three-year revenue, assets and headcount checked.
- 2Books review Week 1–2
Records completeness reviewed.
- 3Fieldwork Per scope
Audit fieldwork by the approved auditor.
- 4Report After fieldwork
Audited financial statements and auditor's report issued.
- 5Lodgement Within statutory deadlines
Circulation and SSM lodgement coordinated.
You do
- Provide complete records
- Answer auditor queries
We do
- Test audit exemption eligibility
- Coordinate the approved company auditor
- Prepare for fieldwork
- Coordinate circulation and SSM lodgement
04
What you receive
With the independent auditor's report.
Whether your company qualifies under PD 10/2024.
Circulation and SSM lodgement dates.
Rules and requirements in detail
Official sources
Frequently asked questions
Do we qualify for audit exemption?
If you meet two of three thresholds for the current and past two years; we test it with your figures.
Is a dormant company exempt?
Yes, dormant companies qualify for exemption.
Why is there no fixed fee?
Audit fees depend on transaction volume and complexity, so we quote after reviewing your records.