What determines how much a statutory audit costs in Malaysia?
Fees are agreed between the company and auditor and depend mainly on the effort required: company size, transaction volume, complexity, record quality, group structure and the auditor's risk. The Companies Act does not set audit fees, so any specific price should come from the auditor.
No official tariff. The Companies Act does not set a fee scale for company audits, so no price range is given here. Section 274 says who fixes the fee: the members for an auditor they appoint (by ordinary resolution or as they decide), the Board for one it appoints, or the Registrar or Board for one the Registrar appoints. The fee includes expenses.
What typically drives the quote
- Size and volume: number of transactions, bank accounts, staff and locations.
- Complexity: inventory, construction contracts, foreign currency, financial instruments, group structure, related-party deals.
- Quality of records: clean, reconciled books mean fewer hours; messy ones mean more.
- First-year audits: opening balances require extra work.
- Risk: prior modified opinions, going concern issues, weak controls.
- Timing: peak-season demand and tight deadlines.
- Your readiness: late or incomplete documents lengthen fieldwork.
- Extra services: tax, advisory or special reports quoted separately.
How to compare quotes
- Ask for an engagement letter showing scope, timetable and what is excluded.
- Check the auditor's approval and firm number (section 265(5)).
- Ask what happens if the work expands, and how extra hours are charged.
- Be wary of fees that look far below others; audit work cannot be skipped.
Reduce cost legitimately by closing books early, reconciling accounts and supplying a ready file. Cost is not a reason to skip a required audit.
Legal basis
- Companies Act 2016, s.274
- Companies Act 2016, s.265(5)
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
- How does a qualified or adverse audit opinion affect bank loans and tax?No law bans lodging a modified opinion, but lenders, tenderers and investors usually treat it as a warning and may ask questions, add conditions or decline. Tax is mostly separate: LHDN works from your financial statements and tax computation, not the opinion type.
- What is the difference between an audit, a review and a compilation of accounts?An audit gives the highest level (reasonable) assurance and is the only one that meets the statutory audit requirement. A review gives limited assurance, and a compilation gives none, because the accountant only assembles the figures. Only a valid audit or a valid audit exemption satisfies the Companies Act.
- When do banks, tenders or grants require audited accounts even if my company is exempt?Company law may excuse an audit, but lenders, tender bodies, grant providers and investors set their own conditions and often ask for audited accounts. SSM itself notes exempt companies may still need audits for financing or contractual obligations.
- 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.