Malaysia – Audit Exemption for Private Companies
Companies Commission Malaysia (CCM) has issued the Practice Directive No. 10/2024 detailing the audit exemption qualifying criteria for certain private companies in Malaysia on 16 December 2024.
The audit exemption is aimed to reduce the financial burden of micro and small private companies in arranging for audit review and to promote the ease of doing business in Malaysia.
A private company qualifies for audit exemption if it fulfils at least two (2) of the following criteria:
1. Annual Revenue:
- The company’s annual revenue during the current financial year and the immediate past two (2) financial years does not exceed RM3,000,000.
2. Total Assets
- The company’s total assets in the current statement of financial position and the immediate past two (2) financial years do not exceed RM3,000,000.
3. Number of Employees
- The number of employees at the end of the current financial year and the immediate past two (2) financial years does not exceed 30.
To facilitate the transition into the new audit framework, the threshold criteria for audit exemption will be implemented via a phased approach over a period of three (3) years, as shown below:-
Any private company that satisfies the exemption criteria and elects to be exempted from audit would be required to submit the following to CCM on annual basis:-
1) Unaudited Financial Statement
2) Directors’ Report
3) Statement by Directors
4) Statutory Declaration
5) Audit Exemption Certificate
Should you require assistance on preparation of the documents required for submission to CCM, please do not hesitate to contact our office.
Reference Documents: