The Companies Commission of Malaysia (“CCM/SSM”) has introduced new audit exemption criteria for private companies.
On 16 December 2024, the CCM/SSM issued a new Practice Directive No. 10/2024 “Qualifying Criteria For Audit Exemption For Certain Private Companies In Malaysia” which outlines the new audit exemption qualifying criteria. The exemption will take effect for financial reporting periods commencing on or after 1 January 2025.
New Qualifying Criteria
A private company qualifies for audit exemption if it fulfils any two of the following criteria:
1. The annual income of the company during the current financial year and in the immediate past two financial years does not exceed RM3,000,000;
2. The total assets of the company in the current statement of financial position and in the immediate past two financial years does not exceed RM3,000,000; or
3. The number of employees at the end of the current financial year and in the immediate past two financial years does not exceed thirty.
To ease the transition to the new audit framework, the threshold criteria for audit exemption will be rolled out in phases over a 3-years period and will increase incrementally as follows:
