CHARTERED ACCOUNTANTS AND QUALIFIED COMPANY SECRETARY IN MALAYSIA
QUALIFYING CRITERIA FOR AUDIT EXEMPTION FOR CERTAIN CATEGORIES OF PRIVATE COMPANIES
1. This Practice Directive is issued pursuant to section 20C of the Companies Commission of Malaysia Act 2001 and subsection 267(2) of the Companies Act 2016 (CA 2016).
OBJECTIVE
2. This Practice Directive sets out the qualifying criteria for private companies from having to appoint an auditor in a financial year (audit exemption).
BACKGROUND
3. Subsection 267(1) of the Companies Act 2016 requires every private company to appoint an auditor for each financial year of the company for purposes of auditing its financial statements.
4. However, pursuant to subsection 267(2) of the CA 2016, the Registrar may exempt any private company from having to appoint an auditor according to the criteria and conditions as set out in this Practice Directive.
QUALIFYING CRITERIA FOR AUDIT EXEMPTION FOR CERTAIN CATEGORIES OF PRIVATE COMPANIES
5. For the purpose of this Practice Directive, the following categories of private companies qualify for audit exemption:
(a) Dormant companies
(b) Zero-Revenue Companies
(c) Threshold-Qualified Companies
Should you expect to know more about the Audit Exemption Guideline, kindly contact us at 604-6119810 or email your inquiries to admin@vin2u.com.my or support@vin2u.com.my
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