Statutory Audit in Malaysia

In Malaysia, every incorporated private limited company, locally known as Sendirian Berhad (SDN BHD), must have its accounts audited annually by an Ministry of Finance approved external company auditor, who is required to be a member of Malaysian Institute of Accountants (MIA).

This usually involves examining the accounting and bookkeeping records, bank statements, financial statements, and other ledgers; and is the aimed at checking whether the firm is providing an accurate representation of its financial position to Inland Revenue Board of Malaysia (IRBM) and Companies Commission of Malaysia (SSM).

In essence, the main duties that the auditor carrying out a company’s statutory audit in Malaysia has:

• examining whether the financial statements are prepared as per the Companies Act 2016, and the financial reporting standards of Malaysia
• give an opinion the financial statements as prepared by the company gives an accurate representation of its financial position
• all accounting and bookkeeping adheres to the statutory provisions

These auditors report to the shareholders of the company and are appointment in the name of the company. They have the right to attend any annual general meeting(s), and request any information from any officer of the company which may be helpful to the auditor in carrying out his or her duties.

How can we help

Statutory audit is one of InCorp Global’s core services in Malaysia, where our audit experts carry out their duties as per the country’s statutory and regulatory requirements. We also identify and assess the risks of material misstatements in the financial statements, which may be due to fraud, error, or design. We then suggest corrective actions and provide audit evidence to substantiate our opinions.

In summary, our statutory audit services in Malaysia include:

• complication, audit and review of annual financial statements and other financial reports
• internal review and review of internal controls
• evaluate reasonableness of the accounting estimates and disclosures made by the company directors
• risk assessment and recommendations to management
• we also carry out special purpose audits on case-by-case basis