Pengecualian Audit (Terbaru) - Companies Act 2016

Dear Board Members/Financial Controller,

Under Section 267(2), Companies Act 2016 ["the Act"], the Registrar may exempt any private company from having to appoint an auditor if the company satisfy the conditions as determined by the Registrar.

In view thereof, we wish to notify that the Registrar had issued a Practice Directive No. 3/2017 with regards to "Qualifying Criteria for Audit Exemption for Certain Categories of Private Companies" ["PD No. 3/2017] on 4 August 2017.

Summary of the contents of the PD No. 3/2017 is as follows

:-

1) Qualifying Criteria

Category	Type of Private Companies	Qualifying Criteria	Effective Period
			Incorporation	Financial Statement with Annual Period
1.	Dormant Companies -  Dormant is defined as no business is carried out and no accounting transaction occurred excluding the fees and it related costs which are required by any laws for compliance purpose.	† It has been dormant from the time of its incorporation; OR † It is dormant throughout the current financial year and in the immediate preceding financial year.	On or after 31 January 2017	Commencing on or after 31 January 2017
			On or before 30 January 2017	Commencing on or after  1 September 2017/ Triggered for financial year ended 31 August 2018
2.	Zero-Revenue Companies -  Revenue excluded credit entries for reversal of accounting entries arising from earlier entries, accounting entries related to taxation, reversal of provisions made earlier and gain on derecognition of property, plant, equipment and investment property in the Statement of Comprehensive Income; -  No revenue received or receivable; and -  Any expenses incurred in maintaining the Company is disregarded.	†  It does not have any revenue during the current financial year; †  It does not have any revenue in the immediate past two financial years; AND †  Its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 as well as in the FS of the immediate past two financial years.	N/A	Commencing on or after 1 January 2018/ Triggered for financial year ended 31 December 2018
3.	Threshold-Qualified Companies -   Revenue includes revenue receivable during the year	† It has revenue not exceeding RM100,000 during the current financial year and in the immediate past two (2) financial years; † Its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 and in the immediate past two (2) financial years; AND † It has, at the end of its current financial year and in each of its immediate past two (2) financial years end, not more than Five (5) employees.	N/A	Commencing on or after 1 July 2018/ Triggered for financial year ended 30 June 2019

2) Lodgement of Unaudited Financial Statement ["UFS"]

Company that fulfilled any one of the above qualifying criteria, and elects to be exempted from audit, must circulate its UFS to its member of the Company within 6 months of its financial year end. Thereafter, the UFS shall be lodged to the Registrar together with the following documents within thirty (30) days from the circulation date of the UFS:-

i)   Directors' Report, Statement by Directors and Statutory Declaration pursuant to Sections 251 and 252 of the Companies Act, 2016; AND

ii)  A certificate stating the matters as set out in Appendix I (as attached) signed by a director.

3) Other Condition

a)  A company which is exempt from audit requirements ceases to be so qualified, it shall thereupon cease to be so exempt. It shall remain so exempt in relation to accounts for the financial years in which it qualifies.

 b) A company that is eligible for audit exemption shall be required to audit its accounts if it receives a notice in writing requiring the company to audit its accounts during a financial year but not later than one (1) month before the end of that financial year from:-

i) Any member or members eligible to vote and holding in aggregate of not less than 5% of the total number of issued shares of the company or any class of those shares;

ii) Not less than 5% of the total number of members eligible to vote in of the Company; OR

iii) The Registrar who directs the Company to have its account audited.