Audit fees generally be based upon the degree of risk and skill involved. Also, the time necessarily occupied on the work and values of the total assets and operating expenditure. We require the past financial statement and yearly bank statement records to provide you with a quick estimate.

For companies electing for audit exemption, companies are required to lodge a full set of an unaudited financial statements accompanied with a statement that the company is qualified for audit exemption and that the company receives no request from its shareholders that audit must be conducted for a particular year.

A dormant company qualifies for audit exemption if it has been dormant from the time of its incorporation; or it is dormant throughout the current financial year and in the immediate preceding financial year.

A zero-revenue company is qualified for audit exemption if it does not have any revenue during the current financial year; it does not have any revenue in the immediate past two financial years; and its total assets in the current Statement of Financial Position (FS) does not exceed RM 300,000 as well as in the FS of the immediate past two financial years.

A threshold-qualified company is qualified for an audit exemption if it fulfils the following criteria:
(a) It has revenue not exceeding RM100,000 during the current financial year and in the immediate past two (2) financial years;
(b) Its total assets in the current Statement of Financial Position does not exceed RM300,000 and in the immediate past two (2) financial years; and
(c) It has, at the end of its current financial year and in each of its immediate past two (2) financial years’ end, not more than five (5) employees.

If the company is a private company and it is a subsidiary of a public listed company, then it will not be eligible for audit exemption.

No. The company is still obliged to prepare and circulate financial statements within the time period stated in the Companies Act 2016. Thereafter, the company is required to lodge the unaudited financial statements with SSM within 30 days after circulation. The financial statements prepared and lodged with SSM must comply with applicable approved accounting standards.

Under section 266 of the Companies Act 2016, an auditor is responsible to report to the shareholders on the financial statements prepared by the directors. Nevertheless, the value of the audit report will be insignificant when the shareholders themselves are also managing the company as directors.