Audit
Statutory financial audit is often seen as “only a requirement” by many. Though it is mandatory for companies incorporated under the Companies Act 2016, the benefits of a well-designed financial audit is frequently undermined. Our audit services are rendered by our associated audit firms in Ipoh, Perak.
Have you ever felt like audit is just a waste of time and resources of your company?
Or have you ever considered the following benefits from financial audit in Malaysia?
- Improvement in internal systems and controls
- Reduced risk in poor accounting
- Fraud prevention
- Better planning and budgeting
How Are Audit Fees Charged In Malaysia?
Below are the recommended audit fees schedule. The fees are referenced from the Practice Guide (RPG) 7 on Audit Fee Charge (New Audit Fee) by Audit Firm for providing statutory auditing services in Malaysia. RPG is recommended by the Malaysia Institute of Accountants (MIA).
Gross Turnover or Total Assets Basis
| Gross Assets or Turnover | Cumulative Amounts | Rate | Fees | Cumulative Fees |
| The first RM100,00 | RM100,000 | 1.000% | RM1,000 | RM1,000 |
| The next RM150,000 | RM250,000 | 0.438% | RM657 | RM1,657 |
| The next RM250,000 | RM500,000 | 0.313% | RM783 | RM2,440 |
| The next RM500,000 | RM1,000,000 | 0.188% | RM940 | RM3,380 |
| The next RM1,500,000 | RM2,500,000 | 0.125% | RM1,875 | RM5,255 |
| The next RM2,500,000 | RM5,000,000 | 0.100% | RM2,500 | RM7,755 |
| The next RM5,000,000 | RM10,000,000 | 0.094% | RM4,700 | RM12,455 |
| RM10,000,000 to RM20,000,000 | RM1,000 for every RM1,000,000 increase of a fraction thereof up to RM20,000,000 | |||
| Above RM20,000,000 | Negotiable (but should not be less than RM20,000 per assignment) | |||
| Dormant (Minimum audit fee) | RM800 | |||
Total Operating Expenditure Basis
| Gross Assets or Turnover | Cumulative Ringgit | Rate | Fees | Cumulative Fees |
| The first RM50,000 | RM50,000 | 2.500% | RM1,250 | RM1,250 |
| The next RM150,000 | RM200,000 | 1.250% | RM1,875 | RM3,125 |
| The next RM800,000 | RM1,000,000 | 0.625% | RM5,000 | RM8,125 |
| The next RM1,000,000 | RM2,000,000 | 0.250% | RM2,500 | RM10,625 |
| Above RM2,000,000 | 0.125% | |||
| Dormant (minimum audit fee) | RM800 |
The Malaysia Institute of Accountants (MIA) has recommended Practice Guide (RPG) 7 on Audit Fee Charge (New Audit Fee) by Audit Firm for providing statutory auditing services in Malaysia with effect from 1 March 2010.
The Practice Guide is issued due to the following reasons:
- Professional standard demanded on financial audit practitioners has become more stringent. There has been increased compliance burden and a need for continuous skills development.
- Cost of operation of audit firms has been increasing.
- To ensure auditors professionalism and the quality of the audit are not affected due to “price wars” among auditors.
This Practice Guide was subsequently withdrawn on 1 June 2015 to ensure that the provisions of Competition Act 2010 is not breached. Though withdrawn, this guideline is still being referred to by audit firms when establishing their audit fee.
Our audit service cover areas in Ipoh, Kampar, Tapah, Taiping, Chemor, Cameron Highlands, Sitiawan, Manjung, Bidor, Penang, Kedah, Alor Setar, Kelantan, Kuantan, Pahang, Perlis, Terengganu, Kuala Lumpur, Selangor, Melaka, Johor Bahru, Seremban and other areas in Malaysia. Contact us today!
What's Your Profile?
Let us know if you are approaching us as an Individual, Business Owner or a Company. You may read more about the services we cater to you according to your profile.
Individual
Salaried individual or a company director.
Small Business
Sole proprietor, enterprise or partnership.
Individual
Sendirian Berhad or Private Limited Company.
Let's Connect, It All Begins Here.
Drop us a message via the contact form, or simply text or call our office number.