Under the Companies Act 2016, companies that are doing business in Malaysia and registered under the Companies Commissioner of Malaysia are required to appoint an approved auditor to audit the accounts of the company. The directors are required to present an audited set of accounts at the annual general meeting (AGM) once in every calendar year.
An Approved Auditor in Malaysia
The laws in Malaysia require that a company's annual audit must be performed by an approved auditor or audit firm. An approved auditor is a person approved as an auditor by the Minister of Finance.
The Ministry may, if he is satisfied that the person is of good character and competent to perform his duties as an auditor, approve the person as auditor in Malaysia. The Ministry will grant an audit license for approved auditors in Malaysia, which is renewable every 2 years.
An approved company auditor in Malaysia is required to be a member of Malaysian Institute of Accountants (MIA), obtained with recognized academic or professional qualification and has relevant professional practical experience.
If your company is newly incorporated, the directors of a company must at any time before the first AGM appoint the first auditors. Shareholders may appoint the first auditors at a general meeting if directors fail to make the appointment.
The term of office of an auditor is until the conclusion of the next AGM. A company must appoint or re-appoint an auditor until the conclusion of the next AGM.
An auditor can resign at a general meeting of the company. Normally the auditor gives notice in writing to the directors that he desires to resign. The directors of the company must call for a general meeting for the purpose of appointing an auditor in place of the resigning auditor. The resignation of the existing auditor is only effective on the appointment of another auditor. Notice of nomination of new auditor must be sent out to the auditor and all shareholders entitled to receive notice at the prescribed number of days before the AGM.
Auditor's main duties are as follows:
▪ To examine and form an opinion as to whether the financial statements have been drawn up in accordance with the financial reporting standards of Malaysia and the Companies Act 2016.
▪ To examine and form an opinion as to whether the financial statements give a true and fair view of the financial position, financial performance and cash flows of the company as of the financial year end.
▪ To obtain reasonable assurance that the financial statements are free from material misstatements.
▪ To report that the accounting and other records that are required by the Companies Act 2016 to be kept by the company have been properly kept.
▪ The duties of the auditors are to report to the shareholders of a company.
Although auditors are responsible to express an opinion on the financial statements. However, the responsibility of preparation and fair presentation of financial statements of a company lies with directors of a company.
▪ Your appointed company auditor has the right of access at all reasonable times to the accounting records or books, vouchers and other records such as agreements or registers of the company.
▪ Your appointed company auditor has the right to require information from any officer of the company as he desires for the purpose of carrying out his duty.
▪ Your auditor is entitled to attend any annual general meeting and to speak on any part of the business of the meeting that concerns him as his capacity as auditor.
▪ If your company is a holding company, your auditor has the right to require any officer or auditor of the subsidiary to provide information and explanation to him for the purpose of reporting on the consolidated accounts.
▪ Your auditor has the right to receive any notices or communication relating to any general meeting which a member is entitled to receive.
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Edited by: 浪子
Bibliography
YYC Advisors. (n.d.). Duties of Auditors in Malaysia. Retrieved from https://www.yycadvisors.com/duties-of-auditors-in-malaysia.html
YYC Advisors. (n.d.). Auditors and Audit Firm in Kuala Lumpur (KL), Malaysia. Retrieved from https://www.yycadvisors.com/auditors-in-malaysia.html
Duties of Auditors in Malaysia
Reviewed by 浪子
on
January 08, 2019
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Reviewed by 浪子
on
January 08, 2019
Rating:
