Audit & Assurance
In Malaysia, statutory audit is a legally required to be conducted annually to meet a specific set of requirements by the government. Scope and nature of audit programme are subject to the specifications of the governmental body and financial institutions. It involves scrutiny of all financial statements and accounts related to the organization to ensure their reliability and avoid any misrepresentation or discrepancies. The findings of a statutory audit are legal and binding and can lead to citation or fines or both. All registered business private limited company are mandated to undergo statutory audit for the preparation of accurate financial statements.
However, in Singapore on the other hand, A Singapore private limited company enjoys audit exemption, i.e. the accounts do not have to be subject to audit provided:
the shareholders of the private limited company comprise individuals only; and The annual turnover of the private limited company is S$5million and below
However, Singapore private limited companies are still required to prepare financial reports in a format as defined by the Companies Act and the Singapore Financial Reporting Standards (FRSs) for submission to the relevant authorities such as Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS).