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Q：
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What are the criteria for audit exemption?
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A：
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Companies that fall under any one of the following categories are eligible for audit exemption:
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Dormant companies: companies that have remained dormant since incorporation or have been dormant in the current and the immediate preceding year.
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Zero-revenue companies: companies with zero-revenue and total assets not exceeding RM300,000 in the current and the 2 preceding years.
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Threshold-qualified companies: companies with revenue not exceeding RM100,000, total assets not exceeding RM300,000 and employing no more than 5 employees in the current and immediate past 2 years.
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Q：
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How to apply for the audit exemption?
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A：
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A company that elects for an audit exemption does not need to formally apply for it through the Companies Commission of Malaysia. Instead, it must check if it meets the criteria. If eligible, the company can forego appointing an auditor for that financial year.
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Q：
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Does a company electing for exemption from audit need to prepare and file its financial statements with the Companies Commission of Malaysia?
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A：
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Yes, the company is still required to prepare and circulate its unaudited financial statements and lodge the same with the Companies Commission of Malaysia within the stipulated timeframe. The unaudited financial statements must also be accompanied by an audit exemption certificate.
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Q：
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Is audit exemption same as exempt private company?
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A：
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No, an exempt private company (EPC) is a private company with no more than 20 members, none of whom are corporations. An EPC must still have its financial statements audited, but it is not required to lodge the audited financial statements with the Companies Commission of Malaysia; instead, it submits the "Certificate by Exempt Private Company" and the "Auditor's Statement". An EPC that meets the criteria can choose audit exemption and lodge its unaudited financial statements with the Companies Commission of Malaysia.
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Q：
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Can a subsidiary of public listed company exempt from audit?
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A：
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No, if a company is a subsidiary of a public listed company, it will not qualify for audit exemption.
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FAQ
