Statutory Audit
Our professional partner firms (Lesmond Lee & C0. (AF 1559) & S.M. Tuang & Co. (AF 0001)) will perform independent examination of a company’s financial statements, required by law, to ensure they are accurate, fair and comply with accounting standards, and are in accordance with the relevant laws, particularly the Companies Act 2016.
The audit is typically conducted by a licensed external auditor and provides assurance to stakeholders, such as shareholders and investors, that the company’s financial records are reliable.
What is a Statutory Audit Service in Malaysia?
A statutory audit service in Malaysia involves the independent examination of a company’s financial statements and accounting records by a licensed external auditor. The primary purpose is to ensure that the company's financial records and statements are accurate, comply with accounting standards, and are in accordance with the relevant laws, particularly the Companies Act 2016. The audit is conducted annually to assess the truth and fairness of the company's financial position and performance, providing assurance to stakeholders about the reliability of its financial information.
Why Does a
Business Need a Statutory Audit?
A business in Malaysia needs statutory audit services to ensure compliance with the Companies Act 2016 and the relevant accounting standards. Statutory audits provide confidence to stakeholders, such as investors, lenders, and shareholders, by confirming that the financial statements are reliable and accurately reflect the company’s financial position. Additionally, audits help identify areas of financial risk and improve internal controls within the business.
Examples of Statutory Audit Services：
- Audit of annual financial statements
- Verification of accounting records and financial transactions
- Review of compliance with the Malaysian Financial Reporting Standards (MFRS) or Malaysian Private Entities Reporting Standard (MPERS)
- Evaluation of the company’s internal control systems
- Reporting on the accuracy and fairness of financial statements
- Issuance of an audit opinion on the financial statements
- Preparation of audit reports for submission to regulatory bodies (SSM, LHDN, etc.)
Benefits of Statutory Audits ：
- Enhance compliance
- Enhance credibility
- Improve financial transparency