What is Voluntary Audit?
A voluntary audit is an audit, which is not compelled or mandated by law. It is an audit that is exercised by choice, hence the very essence of it being voluntary.
Even without specific obligation required by the law, many entities have the necessity, or think opportune, to demand a qualified and independent professional judgment on their own financial reporting.
What is Statutory Audit?
A statutory audit is a legally required review of the accuracy of a company's financial statements and records. The purpose of a statutory audit is to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.
It is a requirement under the Companies Act of Malaysia that every private limited company doing business in Malaysia must appoint an approved company auditor for auditing its accounts and reporting to the members of the company annually.
Does my business need an Audit?
Every sdn bhd company is required by the Companies Act 1965 to appoint an approved auditor for their companies.
Whether active or not, large or small, all companies must have its accounts audited by the auditors every year before the Annual General Meeting (AGM). The shareholders shall then adopt and approve the audited accounts (audited financial statements) during the AGM.
All enterprises (sole proprietors) or partnership are NOT required by Business Registration Act to appoint auditors to audit their accounts.
Who can be appointed as an Auditor?
- A person who has been approved under Section 263 of the Companies Act, 2016 as an approved company auditor; and
- Whose approval has not been revoked.