KUALA LUMPUR, Dec 18 (Bernama) -- The new criteria for the exemption of financial statement audits for private companies will take effect on Jan 1, 2025.
In a statement today, the Companies Commission of Malaysia (SSM) announced that the current criteria will remain in place until Dec 3, 2024, and will continue to apply to financial statements for periods beginning before Jan 1, 2025.
"This step aligns with SSM's commitment to enhancing the quality of auditing for financial statements in the country while reducing the compliance burden for private companies.
"These new criteria will benefit small and medium enterprises (SMEs), reduce compliance costs, and ensure that corporate governance practices remain efficient and transparent at the highest level," SSM stated.
The new audit exemption criteria for private companies in Malaysia were introduced through Practice Directive No. 10/2024, titled Qualifying Criteria for Audit Exemption for Certain Private Companies in Malaysia, and announced by SSM on Dec 16, 2024.
The statement noted that the new criteria underwent several rounds of consultations from Feb 2023 until June 2024, receiving support from 88 per cent of respondents.
SSM noted that companies seeking an audit exemption must meet any two of the following criteria: annual revenue not exceeding RM3 million in the current and two preceding financial years; total assets not exceeding RM3 million in the current and two preceding financial years; and the number of employees not exceeding 30 at the end of the current and two preceding financial years.
SSM added that the company is also eligible for an audit exemption if it has been dormant since its establishment or dormant during the current period and the previous financial year.
For inquiries and further information, please contact SSM Customer Care via the Complaints and Feedback section, SSM Chatbot (available 24/7), Live Chat SSM (8 am to 5.30 pm, Monday to Friday, except public holidays) through the official SSM portal or calling 03-7721 4000, or emailing enquiry@ssm.com.my.
-- BERNAMA
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