What is a Statutory Audit?
A statutory audit is an independent examination of a company's financial statements to ensure they present a true and fair view of the business's financial position. In Malaysia, a statutory audit is a legal requirement under the Companies Act 2016 — it is not optional, and failure to comply carries penalties under the law.
At Chua & Chu PLT (AF0332), our licensed auditors bring decades of experience across industries, giving you an audit process that is thorough, efficient, and completed on time.
Who Needs a Statutory Audit?
- All Sdn Bhd (private limited) companies incorporated in Malaysia
- All PLT (Limited Liability Partnerships) that meet the audit threshold
- Dormant companies that have not formally closed (yes, you still need one)
- Companies receiving government grants or contracts that require audited accounts
- Businesses seeking bank financing — lenders require audited financials
If your company is incorporated under SSM, you almost certainly need a statutory audit. Not sure?Contact us and we'll advise you within 24 hours.
Our Audit Process — Step by Step
- Step 1 — Engagement & Planning (Week 1–2)We begin by understanding your business — your industry, operations, internal controls, and any significant transactions during the year. We will send you an engagement letter confirming the scope, timeline, and fees.
- Step 2 — Document Collection (Week 2–3)Our team will provide you with a document checklist. Typically this includes your full set of accounts, bank statements, invoices, receipts, fixed asset schedules, and director/shareholder information. The faster documents are provided, the faster we can complete the audit.
- Step 3 — Fieldwork & Testing (Week 3–5)Our auditors review your financial records, verify balances, test transactions, and assess your internal controls. For most SMEs this is done remotely or with a brief on-site visit.
- Step 4 — Queries & Management Review (Week 5–6)We will raise queries on any items requiring clarification. This is a normal part of every audit — not a cause for concern. Your cooperation at this stage keeps the timeline on track.
- Step 5 — Audit Report & Sign-Off (Week 6–8)Once we are satisfied with the financial statements, we issue the Auditors' Report. Directors will sign off on the audited financial statements, which are then ready for submission to SSM and LHDN.
Frequently Asked Questions
How long does an audit take?
For a typical SME with clean records, 6–8 weeks from the date we receive complete documents. Complex group structures or incomplete records may take longer.
When is my audit due?
Under the Companies Act 2016, audited financial statements must be submitted to SSM within 30 days of the Annual General Meeting (AGM), which must be held within 6 months of the financial year end. Late submissions carry fines.
My company had no activity this year. Do I still need an audit?
Dormant companies — those that have been inactive since incorporation, or dormant during the current and immediately preceding financial year — are automatically exempt from the audit requirement.
You may qualify for audit exemption if your company meets at least 2 out of 3 of the following criteria, for the current and the immediate past two financial years:
- Annual revenue does not exceed the applicable threshold under SSM Practice Directive 10/2024 (phasing up to RM3,000,000)
- Total assets do not exceed the applicable threshold under SSM Practice Directive 10/2024 (phasing up to RM3,000,000)
- Number of employees at year-end does not exceed the applicable threshold (phasing up to 30 employees)
Important: Audit exemption does not mean you are free from all obligations. Exempt companies must still prepare, circulate, and lodge unaudited financial statements via MBRS (XBRL) with SSM, within 30 days of circulation, accompanied by a director's certificate. Directors remain responsible for accurate reporting under the Companies Act 2016.
If I qualify for audit exemption, should I still do an audit?
Qualifying for exemption and choosing not to audit are two different decisions. Many business owners who qualify still choose to have their accounts audited. Not sure whether to proceed with an audit even if you are exempt? Talk to us. We will assess your situation — your financing plans, business growth trajectory, and stakeholder requirements — and give you an honest recommendation. There is no one-size-fits-all answer, and we will never recommend an audit you do not need.
Can I change my auditor?
Yes. Shareholders can resolve to change the appointed auditor at an AGM. We regularly assist companies transitioning from another firm and will ensure a smooth handover.
What happens if my audit is overdue?
SSM can issue compounds and penalties for late submission. Directors are personally liable. If your accounts are overdue, contact us immediately — we have experience assisting clients in regularising back years efficiently.
How much does an audit cost?
Fees depend on the size, complexity, and condition of your accounts. Contact us for a no-obligation quote — we respond within 1 business day.