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.
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.
