AUDITING SERVICES

AUDIT & ASSURANCE SERVICES

We provide a range of quality audit and assurance services with the goal of improving our professional opinion on the credibility of the independent financial information for investors to make more informed and better business decisions.

We assist our clients to address the complexity of financial reporting and regulatory requirements and provide practical business solutions to achieve business objectives.

We also offer personalized services to our clients to manage business risks and to improve their business performance in this challenging and competitive global business environment.

HOW WE CAN SUPPORT YOU ?

• The belief of the firm in Assurance is about giving confidence and added credibility information to investors.
• Thinking of variety ways to improve the quality of your external financial audit reports, or working hard to increase reporting requirements.
• We share with you our insights and experience to ease you through the process.
• We first look into your business and find out what make a point so that will have a better prepare for the future.
• Our services also provide a greater transparency and improved corporate governance, thereon rewarding relationships with our clients.

INDUSTRIES SCOPE

• Agriculture
• Construction
• Manufacturing
• Trading
• Others

MALAYSIA FINANCIAL REPORTING STANDARDS (MFRS) FRAMEWORK

• The Malaysian Financial Reporting Standards (MFRS) framework was introduced by the Malaysian Accounting Standards Board (MASB) and came into effect on 1 January 2012.
• It is fully compliant with the International Financial Reporting Standards (IFRS) framework, which enhances the credibility and transparency of financial reporting in Malaysia.
• The adoption of the MFRS framework was a significant milestone for the capital market. Entities can now assert that their financial statements are in full compliance with the IFRS.
• However, this newly introduced standards brings its own challenges. C&A group is committed to provide the necessary guidance to you to comply with this requirements of this new standard.

AUDIT EXEMPTION

According to Section 267(2) of the Companies Act 2016, the Registrar may exempt any private company from having to appoint an auditor if the company fulfil the conditions and criteria as set out in the Practice Directive No. 3/2017.

There are 3 categories of private companies which will be qualified for audit exemption. One of it is if the company is dormant and the criteria are as follows:

• The company has been dormant since incorporation;
• The company has not carry on business and there is no accounting transaction occurred throughout the current financial year and in the immediate preceding financial year.
• “Accounting records” means a transaction, accounting and other records that sufficiently explain the transactions and financial position of the company and enable true and fair profit and loss accounts and balance sheets to be prepared.

Take effect for:

• financial period commencing on or after 31 January 2017 for companies incorporated on or after 31 January 2017
• financial period commencing on or after 1 September 2017 for companies incorporated on or before 31 January 2017

QUALIFYING CRITERIA FOR AUDIT EXEMPTION

Except dormant company, there are another 2 categories of private companies which will be qualified for audit exemption. They are as follows:

A.  ZERO-REVENUE RTR IF IT:

• Does not have any revenue during the current financial year and in the immediate past two financial years and;
• Total assets in the current and immediate past two financial years’ statement of financial position does not exceed RM300,000.

Take effect for:

• Financial period commencing on or after 1 January 2018

B.  THRESHOLD-QUALIFIED COMPANIES IF IT:

• Has revenue not exceeding RM100,000 during the current and immediate past two financial years and;
• Total assets in the current and immediate past two financial years’ statement of financial position does not exceed RM300,000;
• Has not more than 5 full time employees at the end of its current and immediate past two financial years.
• Full time employee means paid worker (including local, foreign, contract workers and workers undergoing probationary period) work not less than 6 hours a day for at least 20 days a month or work at least 120 hours a month but excluding:
• A director who is also working as a full time employee;
• A shareholder who is also working as a full time employee; or
• A family members or friends who are unpaid or receiving irregular wages
• While working in the company.

Take effect for:

1. Financial period commencing on or after 1 July 2018

• Total revenue and total assets would be determined by the applicable accounting standards and states as the total revenue or total assets in the financial statements of the company for each relevant financial years but revenue excluding:
• Credit entries for reversal of accounting entries arising from earlier entries;
• Accounting entries related to taxation;
• Reversal of provisions made earlier
• Gain on derecognition of property, plant, equipment and investment property.

For company that fulfil the criteria for audit exemption may elects to be exempted from audit. However, there are other conditions and requirements as follows which need to be taken care of:

• Unaudited financial statements prepared in accordance with the approved accounting standards together with the directors’ report, statement by directors and statutory declaration are still required to be lodged with the Registrar within 30 days from the circulation date.
• Any one of the Director of the company shall sign a certificate certifying to the best of his knowledge and belief that the company is entitled to exemption from audit for a financial year end.
• A company is required to audit its accounts during the financial year if the company receives a notice in writing not later than one month before the end of the financial year from:
• Any member or members holding not less than 5% of the total number of issued shares of the company;
• Not less than 5% of the total number of members eligible to vote in the company; or
• The Registrar.
• Audit exemption is not applicable to a company which elects to lodge an exempt private certificate with the Registrar.

IS AUDIT EXEMPTION ALLOW UNDER INCOME TAX ACT?

• However, with effective from Year of Assessment 2019, Section 77A(4) of the Income Tax Act 1967 has been amended to allow an income tax return to be submitted based on the financial statement that are prepared in accordance with the Companies Act 2016, which include financial statements that are not audited.