Auditor Role in Sdn Bhd Company
All Private Limited Company (Sdn Bhd) needed to have its accounting records to be audited once a year. For the new company, you will be given an initial maximum of 18 months to close your accounting year. Thereafter, it will be a 12-monthly basis. We will guide you to appoint an Auditor to facilitate the role and service the auditing of the Sdn Bhd Company accounts be conducted in accordance with the Approved Accounting Standards on Auditing in Malaysia. Auditors are licensed by Malaysia Institute of Accountants. All foreigners are advised to fully understand the auditor’s role in Sdn Bhd Company for their accounting standards to be done accordingly.
The Statutory compliances and responsibilities of the Directors of a Private Limited Company as required in the Companies Act, 1965 in auditing process:-
Maintenance of Good Practice for Auditing Process
- Duly prepared management accounts of the Company must be sent for audit immediately after the close of a financial year end.
- The Company should ensure that all relevant documents are made available for auditing purposes.
- Schedule for every balance sheet item should also be prepared.
- Details for items in the Income Statement such as rental, commissions, interest, donation/gifts, hire of equipment, directors’ remuneration/fees, salaries would also be required.
Maintenance of Proper Accounting Record
- Invoices raised should be pre-numerically referenced on every single invoice and copy of which file accordingly in an invoice file.
- Payment vouchers should also be pre-numerically numbered, properly checked and authorized by the respective personnel in charge. Supporting documents should be attached together with the payment vouchers when presenting for approval for payment. Ideally, these invoices/bills are stamped “PAID” to avoid their re-presentation.
- Bank-in of cheques or cash should ideally be done on a daily basis. Indicate the name of the client, invoice number paid and the official receipt or purpose of bank-in and filed accordingly. Section 82(1) (b) of the Income Tax Act, 1967 requires the issue of printed receipts serially numbered for every sum received if the gross takings for a year exceeded RM150,000 and RM100,000 for goods and services rendered respectively.
- Bank balance should be checked and reconciled with the bank statements at the end of every month.
- Receipts and payments should be updated promptly to monitor Company’s cash flow on daily basis.
- Proper books such as sales, purchases, debtors and creditors, journal and bank book should be maintained and updated promptly.
- Management account, i.e. Balance Sheet and Income Statement be drawn up at the end of every month to monitor the financial position of the Company.
- Generally, all transactions must be recorded in the books within sixty (60) days as specified in Section 167(1A) of the Companies Act, 1965.
FEES CHARGED by Auditor is governed by the MALAYSIAN INSTITUTE OF ACCOUNTANTS
Minimum rates of audit fees chargeable for all organisations, including companies and corporations but excluding voluntary charitable organisations are set out in the table below:-
MINIMUM AUDIT FEES TO BE CHARGED
|Dormant (minimum audit fee)|
|Next 100,000 to 250,000|
|Next 250,000 to 500,000|
|Next 500,000 to 1 million|
|Next 1 million to 2.5 million|
|Next 2.5 million to 5.0 million|
|Next 5 million to 10 million|
|Above 10 million|