{"id":8426,"date":"2023-09-07T09:35:18","date_gmt":"2023-09-07T01:35:18","guid":{"rendered":"https:\/\/malayacorporate.com\/?post_type=article&p=8426"},"modified":"2023-09-07T11:10:23","modified_gmt":"2023-09-07T03:10:23","slug":"unaudited-report-what-to-understand","status":"publish","type":"article","link":"https:\/\/malayacorporate.com\/my\/article\/unaudited-report-what-to-understand\/","title":{"rendered":"UNAUDITED REPORT: WHAT TO UNDERSTAND?"},"content":{"rendered":"
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Oleh AZIZAM AZIZAN<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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\nUNAUDITED REPORT: WHAT TO UNDERSTAND?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In the realm of business and finance, transparency and accurate reporting are paramount for\u00a0<\/span>maintaining trust and confidence among stakeholders. The Companies Act 2016 and the\u00a0<\/span>Suruhanjaya Syarikat Malaysia (SSM) play<\/span> crucial roles in regulating and governing the\u00a0<\/span>operations of companies in Malaysia. One essential aspect of corporate reporting is the\u00a0<\/span>presentation of financial information, which can be either audited or unaudited. In this article,\u00a0<\/span>we delve into the conce<\/span>pt of unaudited reports in accordance with the Companies Act 2016\u00a0<\/span>and SSM regulations.<\/span><\/p>

Qualifying Criteria <\/span>for<\/span> Audit <\/span>Exemption <\/span> <\/span><\/strong>
SSM introduced Practice Directive No. 3\/2017, underscoring that audit exemption is available\u00a0<\/span>to specific categories of private <\/span>companies, namely those classified as dormant, zero<\/span>–<\/span>revenue,\u00a0<\/span>and meeting defined threshold criteria.<\/span><\/span><\/p>

I. A dormant company can be granted audit exemption if it has maintained its inactive status\u00a0<\/span>since its incorporation or throughout the present financial ye<\/span>ar and the immediate previous\u00a0<\/span>financial year.<\/span><\/span><\/p>

II. An audit exemption is applicable to a zero<\/span>–<\/span>revenue company if it reports zero income in the\u00a0<\/span>current financial year and the two financial years immediately prior. Furthermore, the\u00a0<\/span>company’s total assets in b<\/span>oth the current Statement of Financial Position (FS) and the FS of\u00a0<\/span>the two preceding financial years should not exceed RM300,000.<\/span><\/span><\/p>

III. Companies that meet specific threshold qualifications are eligible for audit exemption\u00a0<\/span>provided they fulfil the following<\/span> prerequisites:<\/span> <\/span>
\uf0b7<\/span> Revenue for the current financial year and the two preceding financial years does not\u00a0<\/span>exceed RM100,000.<\/span> <\/span>
\uf0b7<\/span> The total assets indicated in the current Statement of Financial Position and the FS of\u00a0<\/span>the two immediate past financial years are less <\/span>than RM300,000.<\/span> <\/span>
\uf0b7<\/span> The company’s employee count is limited to a maximum of five (5) individuals at the\u00a0<\/span>close of the present financial year and at the close of each of the two preceding\u00a0<\/span>financial years.<\/span><\/span><\/p>

Companies Act 2016:<\/strong> Implications for Unaudited Reports<\/strong><\/span> <\/span>
The Companies Act 2016 is the principal legislation governing companies in Malaysia. It\u00a0<\/span>outlines the requirements and procedures for various corporate matters, including financial\u00a0<\/span>reporting. According to the Companies Act 2016, every company is required t<\/span>o prepare and\u00a0<\/span>submit financial statements, which include the balance sheet, income statement, cash flow\u00a0<\/span>statement, and notes to the financial statements. While the Act does not explicitly mandate\u00a0<\/span>the audit of financial statements for all companies, certain<\/span> categories of companies are\u00a0<\/span>required to have their financial statements audited. These categories may include public listed\u00a0<\/span>companies, financial institutions, and companies that meet specific criteria outlined in the Act.<\/span> <\/span>
<\/span>
For companies that are not requi<\/span>red to have their financial statements audited, unaudited\u00a0<\/span>reports play a pivotal role. Such reports provide interim financial information that can assist\u00a0<\/span>stakeholders in making informed decisions. However, it’s important to note that unaudited\u00a0<\/span>reports may <\/span>not provide the same level of assurance as audited financial statements, as they\u00a0<\/span>have not undergone the scrutiny of an independent auditor.<\/span><\/span><\/p>

Keperluan<\/span> and Obligations<\/span> <\/span><\/strong>
\uf0d8<\/span> Any company that elects to be exempted from audit is <\/span>still obliged to prepare its\u00a0<\/span>unaudited financial statements<\/span> in accordance with applicable approved accounting\u00a0<\/span>standards pursuant to the CA 2016.<\/span> <\/span>
\uf0d8<\/span> The unaudited financial statements <\/span>shall be lodged together with the directors\u2019 report,\u00a0<\/span>statement by directors and statutory declaration pur<\/span>suant to the CA 2016<\/span> accompanied\u00a0<\/span>by the Audit Exemption Certificate within thirty (30) days from the circulation date of\u00a0<\/span>the unaudited financial statements and reports.<\/span> <\/span>
<\/span>
Unaudited reports hold significance in providing a preliminary view of a company’s fin<\/span>ancial\u00a0<\/span>performance and position, especially for companies not subjected to mandatory external\u00a0<\/span>audits under the Companies Act 2016. While unaudited reports lack the formal verification\u00a0<\/span>provided by external auditors, they offer stakeholders valuable insights<\/span> into a company’s\u00a0<\/span>financial health. However, it’s important for companies to approach the preparation of\u00a0<\/span>unaudited reports diligently, ensuring accuracy and transparency to maintain stakeholder\u00a0<\/span>confidence and comply with SSM regulations. As the landscape o<\/span>f business continues to\u00a0<\/span>evolve, the role of unaudited reports remains a crucial aspect of corporate reporting in\u00a0<\/span>Malaysia.<\/span><\/span><\/p>

\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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INGIN MENGETAHUI LEBIH LANJUT?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\tHUBUNGI KAMI<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false,"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}}},"class_list":["post-8426","article","type-article","status-publish","hentry"],"acf":[],"yoast_head":"\nUNAUDITED REPORT: WHAT TO UNDERSTAND? -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/malayacorporate.com\/my\/article\/unaudited-report-what-to-understand\/\" \/>\n<meta property=\"og:locale\" content=\"ms_MY\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UNAUDITED REPORT: WHAT TO UNDERSTAND? -\" \/>\n<meta property=\"og:description\" content=\"By AZIZAM AZIZAN UNAUDITED REPORT: WHAT TO UNDERSTAND? 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