Statutory Audit Services

Every company incorporated in Malaysia is required to appoint an approved auditor and have its financial statements audited annually under the Companies Act 2016, unless it qualifies for audit exemption. For most Sdn Bhd companies, the statutory audit is not optional — but it can be a lot more useful than a compliance checkbox.

CWC & ENG PLT is a Malaysian audit firm with a team of 40+ professionals serving SMEs, growing groups, and regulated entities across Malaysia. We combine a disciplined, standards-driven audit methodology with practical commercial insight, so you get a clean, defensible audit opinion — and a clearer picture of your own numbers.

Who Needs a Statutory Audit in Malaysia?

Under Section 267 of the Companies Act 2016, every private company (Sdn Bhd) must appoint an auditor for each financial year, and its financial statements must be audited before circulation to members and lodgement with the Companies Commission of Malaysia (SSM). In practice, a statutory audit is required if your company is:

A private limited company (Sdn Bhd) that does not meet the audit exemption criteria
A subsidiary of a Malaysian or foreign group requiring audited component figures for consolidation
A company whose shareholders, bankers or investors require audited financial statements
Applying for financing, grants, tenders or licences where audited accounts are a prerequisite
A foreign-owned company whose head office requires statutory or group reporting assurance

Even where exemption is technically available, many SMEs continue to be audited because banks, trade creditors, and potential acquirers rely on audited numbers.

Audit Exemption for Small Companies — Do You Qualify?

SSM's Practice Directive No. 10/2024 widened audit exemption for qualifying private companies, phased in for financial years beginning on or after 1 January 2025. Broadly, a company may qualify if it stays within thresholds for annual revenue, total assets and number of employees, with the ceilings stepping up progressively over a three-year phase-in (ultimately up to RM3 million revenue and total assets, and 30 employees), alongside exemptions for dormant companies.

We'll assess your position at no chargeThe rules contain important conditions — including shareholder rights to demand an audit and the requirement to still prepare and lodge unaudited financial statements. If you are unsure whether your company qualifies, we will assess your position before you commit to an audit engagement.

Our Statutory Audit Services

We provide the full scope of external audit and assurance work required of Malaysian companies:

Audit of financial statements under MPERS and MFRS

Statutory audits conducted under approved standards on auditing in Malaysia (ISA), covering financial statements prepared under MPERS for private entities and MFRS for entities within the full IFRS-equivalent framework.

Group and standalone engagements

Group audits and consolidation support for Malaysian holding companies and multi-entity structures, including component audits, intercompany reconciliation review, and reporting to group auditors overseas under ISA 600.

First-year and incoming audits

Structured take-on procedures for newly incorporated companies, first-time audits, and transfers from a previous auditor — including opening balance verification and professional clearance handled for you.

Regulated and special-purpose audits

Audits for licensed and regulated entities, including Labuan companies filed with the Labuan Financial Services Authority (LFSA), where CWC & ENG PLT is an Approved Labuan Auditor, along with special-purpose and agreed-upon-procedures engagements.

Our Audit Process — What to Expect

A well-run audit should be predictable. Here is how we manage every engagement:

1
Scoping & fee quotation
We review your trial balance, prior-year financial statements and group structure, then issue a fixed fee quote and engagement letter — no open-ended billing.
2
Planning & request list
You receive a tailored preliminary request list up front, so your finance team knows exactly what to prepare. We plan around your closing timeline, not the other way around.
3
Fieldwork
Risk-based testing of key balances and transactions — revenue, receivables, inventory, payroll, borrowings, related-party balances — with queries consolidated to minimise back-and-forth.
4
Reporting & resolution
Draft financial statements and proposed audit adjustments are walked through with you before finalisation. Issues are explained in plain language, with recommendations you can act on.
5
Sign-off & lodgement support
Signed auditor's report delivered in time for your statutory deadlines, with coordination alongside your company secretary and tax agent for SSM lodgement and tax filing.

Statutory Deadlines You Should Know

Missing statutory timelines exposes directors to penalties under the Companies Act 2016. The key dates for a private company:

Requirement	Deadline
Circulate audited financial statements to members	Within 6 months of financial year end
Lodge financial statements with SSM	Within 30 days of circulation
Corporate tax return (Form C) filing with LHDN	Within 7 months of financial year end

We plan every audit backwards from these deadlines and flag risks early, so you are never scrambling at month six.

Why Malaysian SMEs Choose CWC & ENG PLT

Partner-led engagements

An audit partner is directly involved in planning, review and sign-off on every file — not just the letterhead.

A 40+ strong professional team

Enough depth to handle groups, tight deadlines and complex areas (ECL provisioning, leases, deferred tax) without delays.

Fixed fees, agreed up front

Transparent quotations based on your actual size and complexity.

Technology-enabled fieldwork

Structured request lists, digital working papers and analytics-assisted testing mean fewer disruptions to your team.

One ecosystem for compliance

Through our group, clients can access company secretarial, accounting, payroll and tax services — so the audit connects seamlessly with the rest of your compliance calendar.

Regulated-entity credentials

Approved Labuan Auditor with deep experience in LFSA filings and licensed entities — the same rigour applied to every SME audit.

Industries We Audit

Trading and distributionManufacturingConstruction and propertyProfessional servicesTechnology and startupsF&B and retailInvestment holdingLogisticsLicensed and regulated entities (incl. Labuan structures)

Speak With Your Audit Partners

Every statutory audit engagement is directly reviewed by a licensed partner.

Eng Guo Miao

Partner CA (M), FCCA

eng@cwc-co.com.my

Sam Kuan Ying Tung

Partner CA (M), CPA

sam.kuan@cwc-co.com.my

FAQ

Frequently Asked Questions

Yes, by default. Under the Companies Act 2016, every private company must appoint an auditor and have its financial statements audited annually, unless it qualifies for audit exemption under SSM's practice directives — for example, certain dormant and small companies within the prescribed revenue, asset and employee thresholds.

Audit fees depend on your company's revenue, total assets, transaction volume and complexity (e.g. inventory, construction contracts, group consolidation). We provide a fixed quotation after reviewing your trial balance and prior-year financial statements — with no obligation.

For a typical SME with complete records, fieldwork takes around one to two weeks, with the signed report delivered within two to four weeks of receiving complete information. Group audits and first-year engagements take longer. We agree the timeline with you at the planning stage.

Core items include the trial balance and general ledger, bank statements and reconciliations, sales and purchase listings, fixed asset register, loan statements, statutory records, and prior-year audited financial statements. We issue a tailored request list at the start of every engagement so nothing is missed.

Yes. Changing auditors is straightforward — we handle the professional clearance with your outgoing auditor and the necessary appointment formalities with your company secretary. The best time to switch is shortly after your financial year end, before fieldwork begins.

MPERS is the simplified reporting framework available to most private entities in Malaysia, while MFRS is the full IFRS-equivalent framework required for publicly accountable entities and those electing full standards (often for group reporting reasons). We audit under both and can advise which framework fits your structure.

Often, yes. Banks and financiers typically require audited accounts for facilities, and audited financial statements strengthen your position in tenders, grant applications, and any future sale or investment. We can help you weigh the cost against these benefits.

Yes. We serve clients throughout Malaysia. Much of the audit process is handled digitally, with fieldwork visits arranged where needed.

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Our Qualification and Recognition

Accredited Malaysian Institute of Accountants

Affiliated LEA Global