New SSM Audit Exemption Rules (Part 2)
While the audit exemption threshold has been relaxed, here are a few important points to note:
1. Meet the criteria for three consecutive financial years：
- The company must satisfy at least two out of the three qualifying criteria.
- The criteria must be met in the current financial year and the previous two financial years.
2. Certain companies are not eligible：
- The following companies must still be audited:
- Public companies (Berhad), including listed companies and their subsidiaries
- Foreign companies
- Companies that have submitted an Exempt Private Company (EPC) Certificate
3. Audit exemption may not always be the best option：
- Banks, investors and financiers generally have greater confidence in an Audit Report.
- Companies seeking financing or investment may still require audited financial statements.
4. Audit exemption does NOT mean no accounting：
- Companies are still required to prepare:
- Unaudited Financial Statements
- Directors' Report
- Audit Exemption Certificate signed by the directors and submitted to SSM