The Inland Revenue Board of Malaysia (LHDN) plays a crucial role in enforcing tax compliance across Malaysian businesses. While LHDN does not conduct financial statement audits like statutory auditors do, it carries out tax audits to ensure that companies are correctly reporting their income and paying the appropriate amount of tax. A statutory audit, required …

How Does the Inland Revenue Board (LHDN) Relate to Company Audits? Read More »

While statutory audits are mandatory for most Malaysian companies under the Companies Act 2016, there are instances where businesses may not be legally required to conduct an audit, particularly small private companies, startups or dormant entities. However, even in the absence of a legal obligation, many forward-thinking businesses choose to undertake voluntary audits as a …

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Small businesses, while often agile and innovative, frequently encounter unique challenges when it comes to financial audits. These challenges are usually due to limited resources, less formal processes, or lack of internal controls. Understanding the common audit issues can help small businesses proactively address them and ensure a smoother audit experience. 1. Incomplete or Disorganized …

What Are the Common Audit Issues Faced by Small Businesses? Read More »

The audit process for Sdn Bhd (Sendirian Berhad) companies in Malaysia is guided by the Companies Act 2016 and Malaysian accounting standards. A statutory audit is a legal requirement for all non-exempt Sdn Bhd companies to ensure that their financial statements present a true and fair view of their financial position. Here’s an overview of …

How Does the Audit Process Work for Sdn Bhd Companies? Read More »

Small and medium-sized enterprises (SMEs) in Malaysia are crucial to the nation’s economy. While they may not always have the same resources as larger corporations, SMEs are still subject to the same statutory requirements, including the annual audit. Preparing for an annual audit doesn’t need to be stressful. With proper planning and good practices, SMEs …

How Can SMEs in Malaysia Prepare for Their Annual Audit? Read More »

In Malaysia, most companies are required to have their financial statements audited annually. This requirement stems from the Companies Act 2016, which mandates that every company must prepare audited financial statements unless they qualify as an exempt private company. An exempt private company is a private company with not more than 20 shareholders and none …

Do All Companies in Malaysia Need to Be Audited? Read More »

Internal and external audits are both essential tools in the realm of financial oversight and risk management, but they serve different purposes and are conducted in distinct ways. Understanding the differences between the two can help businesses determine how best to use them for governance and performance improvement.  An internal audit is conducted by an …

Internal Audit vs. External Audit: What’s the Difference? Read More »

In Malaysia, businesses may undergo several types of audits depending on their legal obligations, operational needs and strategic goals. Understanding the different types of audits can help companies better prepare for compliance and enhance internal processes. This is the most common and legally required audit. Under the Companies Act 2016, all companies except exempt private …

What Are the Different Types of Audits in Malaysia? Read More »

A statutory audit is a legally mandated review of the accuracy of a company’s financial statements and records. In Malaysia, statutory audits are primarily governed by the Companies Act 2016, which requires most companies, particularly private limited (Sdn Bhd) and public companies, to submit audited financial statements annually to the Companies Commission of Malaysia (SSM).  …

What is the Purpose of a Statutory Audit? Read More »

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: Throughout the process, transparency and open communication are crucial. Companies …

What to Expect During an Audit by a Licensed Auditor in Malaysia? Read More »