What is the difference between MIA membership, a practising certificate and an audit licence?
MIA membership (chartered accountant) is the professional qualification. A practising certificate lets a member work in public practice. The audit licence is the separate approval under section 263 that lets a member act as company auditor. An auditor in Malaysia normally holds all three.
These three terms are often mixed up.
1. MIA membership. The Malaysian Institute of Accountants (MIA) regulates the accountancy profession under the Accountants Act 1967. A "chartered accountant" is a member registered with MIA. Section 263(7) of the Companies Act uses that definition: only a chartered accountant can apply to be a company auditor.
2. Practising certificate (PC). A PC from MIA is what allows a member to offer public practice services. The Accountant General's Department lists a valid MIA practising certificate as a condition to be approved as a company auditor and to renew the approval.
3. Audit licence (company auditor approval). Granted under section 263 by the Minister of Finance, delegated to the Accountant General's Department. Without it a person cannot lawfully act as auditor of a company, whatever else they hold.
Related
- Auditors of listed companies and other public-interest entities must additionally register with the Audit Oversight Board (see the AOB question).
- Bookkeepers and tax agents may offer services without being auditors; they cannot sign statutory audit reports.
Checking. Ask for the auditor's approval number and firm number (these appear next to signatures on audit reports under section 265(5)), and check MIA's and the Accountant General's records if in doubt.
MIA sets the rules for issuing and renewing practising certificates, so check MIA's current requirements if you need them. The details above come from the Accountant General's FAQ and the Act.
Legal basis
- Companies Act 2016, s.263
- Companies Act 2016, s.265(5)
- Accountants Act 1967
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Does every Sdn Bhd in Malaysia need to be audited?Not every one, but audit is the default. Section 267(1) of the Companies Act 2016 requires a private company to appoint an auditor for each financial year, unless it qualifies for and elects the audit exemption set by SSM's Practice Directive 10/2024.
- What is audit exemption for private companies in Malaysia?Audit exemption lets an eligible private company choose not to appoint an auditor for a financial year. It rests on section 267(2) of the Companies Act 2016 and SSM Practice Directive 10/2024. The company still prepares and lodges unaudited financial statements.
- What are the audit exemption thresholds for a Sdn Bhd in 2026?For financial periods starting 1 January to 31 December 2026 (Phase 2), a private company must meet at least two of three tests: revenue up to RM2,000,000, total assets up to RM2,000,000, and no more than 20 employees. Each test covers the current and past two years.
- How do the 2025 to 2027 phases for audit exemption work?Practice Directive 10/2024 raises the audit exemption limits in three steps, based on when the financial period starts: 2025, 2026, and 2027 onwards. The final limits are RM3,000,000 revenue, RM3,000,000 total assets and 30 employees, reached for periods starting from 1 January 2027.
- How do I check if my Sdn Bhd qualifies for audit exemption?Pass at least two of three tests (revenue, total assets, employees) for the current financial year and the past two, using the limits for the phase your period falls in. Also confirm you are not an excluded company type, such as a subsidiary of a public company.