If you need assistance with the selection of an audit company in Malaysia then you have come to the right place. In Malaysia, there are many companies that claim to be " audit companies " but in reality, they are only there to con you out of your hard earned money. They will be hard pressed to give you any guarantees, so you must be very wary when selecting any of these " audit companies " in Malaysia. These companies will typically send you a boilerplate email that states that they are a member of the AMS for "so and so" many years. Be careful if you receive this email as most are phishing sites looking to get your personal information so it's best just to delete the email.
I have received a lot of emails from people in the Middle East who have had personal experience with some of these unscrupulous " audit companies " in Malaysia. The common story is that they were charged exorbitant prices by the Malaysian government for "standard auditing". After paying them the fees, they turned around and hired private investigators to audit all of your private documents, financial statements and business records. This is standard practice in Malaysia and can cost you anything between $500 and several thousand dollars depending on the scope of the audit. They also insist that you sign non-disclosure agreements or risk gag orders so there is no way to get this information out of them.
Other countries such as the United Kingdom and Australia do not require an audit of companies before they issue them business licenses. You should never go to a Middle Eastern country to do an audit of a company in Malaysia as it is illegal to do this there. Generally, all countries require an international quality assurance audit which is performed by an independent third party outside of the company for an annual review. In countries like Malaysia, this requires an advisory meeting with the senior management of the company to discuss any problems or questions that may arise during the course of the audit. The audit team is usually comprised of one accountant from each major accounting function with experience in managing audits. Most large multinational companies in these countries will have experienced auditors on staff as well as internal audit teams.
One of the most common ways that businesses in Malaysia are set up and run is through a chain of command and the audit of corporate secretarial and accounting documents goes through the lowest level of the chain of command, which is the company president. After this the next line of command is the CFO or CPA (Chief Accountant) who is responsible for the overall direction of the company's accounting and corporate secretarial departments. From there the highest level of the chain of command goes to the SAP or Senior Certified Public Accountant. From this point, it is down to the accounts supervisors and other personnel to review the audit reports and make any necessary changes before the company presents its yearly financial report to the shareholders.
Malaysian law requires that a company must appoint an audit manager for internal and external audits. There are two types of Audit Managers in Malaysia, the Lead Auditor and the Manager of Internal Audit. The Manager of Internal Audit is the one who is in charge of the audit function within the company and is responsible for ensuring that all requirements of the law are being met. For external audits, the Lead Auditor is the one responsible for making sure that the audit is conducted in accordance to Generally Accepted Accounting Principles (GAAP).
For many years now Malaysia has had the most beneficial and stable economy in the region. This has been made possible by the large growth of various industries such as oil & gas, processing, telecommunication, retailing, manufacturing, and the service sectors. Corporate Malaysia has also enjoyed the benefits of having some of the best audit firms in the world in place. Since Malaysia's economy relies so much on information and its ability to process large amounts of data, having top quality auditing companies is critical to the success of Malaysian businesses.
Malaysia's Corporate governance system is based on the Berlitz System, which is similar to US customary laws. There are several bodies that have been created to govern various industries such as the Public Company Commission (PCC) and the Securities and Exchange Commission (SEC). While there are several bodies in place to ensure that the laws are strictly followed, the government has been able to strengthen its regulatory system through the creation of the Sentral Board. The Sentral Board has the power to approve or reject most requests for auditing from any company wishing to apply.
Many companies choose to work with an audit firm in Malaysia under the supervision of the Sentral Board. However, it is not uncommon for companies to work directly with an individual auditor, who may be from a different country altogether. The choice is entirely up to you and is often a matter of cost. In Malaysia, the fees charged for corporate advisory services is generally lower than in other countries, with both the annual audit and annual review being roughly half of what it costs in the West. If this is something that interests you and your company, the next step is to request a quote to compare the costs and services of any number of firms in Kuala Lumpur, Singapore, Tokyo or Hong Kong.
