Undergoing an audit can seem daunting, especially for first-time business owners or startups. However, knowing what to expect during an audit conducted by a licensed auditor in Malaysia can help demystify the process and ensure smooth cooperation.
The audit process typically involves several key stages:
- Engagement and Planning: The process begins with the company appointing a licensed auditor, usually through a formal engagement letter. The auditor will then plan the audit, assess the company’s business environment, and identify areas of potential risk.
- Preliminary Meetings: The auditor meets with management to gather information on financial systems, internal controls, and any changes from the previous year. This helps refine the audit plan.
- Document Collection: The company is required to provide financial records such as ledgers, bank statements, invoices, and payroll data. Supporting documents for significant transactions are also requested.
- Fieldwork and Testing: Auditors perform detailed checks of financial transactions, test internal controls, and verify balances. They may send confirmation requests to banks, customers, or suppliers. Observations are documented for further analysis.
- Drafting the Audit Report: After completing fieldwork, the auditor drafts a report containing their opinion on whether the financial statements present a true and fair view. Any discrepancies, issues, or required adjustments are communicated to management.
- Exit Meeting and Finalization: The auditor discusses findings with the management team. Once any necessary revisions are made, the final audit report is issued.
Throughout the process, transparency and open communication are crucial. Companies should be prepared to answer questions, provide timely documentation, and collaborate with auditors to resolve any issues.
Working with a reputable audit firm like Jamal Amin & Partners ensures a professional and efficient audit experience. Our auditors are licensed by the Malaysian Institute of Accountants (MIA) and bring extensive experience in statutory, compliance, and internal audits.
In summary, audits by licensed auditors follow a structured process aimed at ensuring accuracy, compliance, and transparency. With the right preparation and support, audits become a valuable tool for enhancing financial credibility and operational insight.