In Malaysia, companies are generally required to undergo an annual statutory audit. This requirement is outlined in the Companies Act 2016, which mandates that most companies must submit audited financial statements annually to the Companies Commission of Malaysia (SSM).
Here’s a breakdown of how frequently audits should be conducted based on company type and status:
- Annual Requirement for Most Companies
Private limited companies (Sdn Bhd), public companies, and foreign-owned companies are all subject to yearly audits. These companies must appoint an approved auditor and submit their audited financial statements annually, typically within 30 days after the annual general meeting (AGM). - Exempt Private Companies
Certain small private companies can apply for audit exemption if they meet all of the following criteria:
- Annual revenue less than RM100,000
- Total assets not exceeding RM300,000
- Not more than five employees during the financial year
Even if eligible, these companies must apply for exemption each year and maintain proper financial records for review if required.
- Voluntary Audits
Companies not legally required to conduct audits may still choose to do so voluntarily. This is common among businesses seeking investment, loans, or better governance. - Sector-Specific Requirements
Certain regulated industries (e.g., finance, construction, healthcare) may have more frequent or additional audit requirements imposed by sectoral regulators such as Bank Negara Malaysia or Bursa Malaysia.
Why Annual Audits Are Beneficial
- Ensure compliance with laws and standards
- Improve transparency and stakeholder trust
- Help identify and correct internal inefficiencies
- Provide insights for business planning and risk management
Jamal Amin & Partners ensures that clients are always audit-ready and compliant. Our experienced team offers tailored audit schedules that align with your business operations and regulatory obligations.
In summary, the standard audit frequency in Malaysia is once every financial year. Companies should not delay or skip this obligation, as it is critical to maintaining legal standing and business integrity.