Audit Exemption

New Audit Exemption Qualifying Criteria
(Effective for financial periods starting on or after 1 January 2025)

  Audit Exemption (SSM Reference) - New Audit Exemption Qualifying Criteria.pdf

1. Purpose
The government has introduced an audit exemption policy to reduce the burden on small and medium-sized enterprises (SMEs). The following conditions must be met:

2. Current Criteria

3. New Criteria Requirement



A private company qualifies for audit exemption if it meets any 2 out of 3 criteria for the current and past two financial years:
✔ Revenue: ≤ RM3,000,000
✔ Total Assets: ≤ RM3,000,000
✔ Employees: ≤ 30

4. Phased Implementation
To help companies adapt, thresholds increase gradually:

5. Additional Notes
❌ Not Eligible:

• Subsidiaries of public companies
• Foreign companies
• Companies opting for audit voluntarily

✅ Dormant companies are exempt if inactive since incorporation

6. Responsibilities of Exempted Companies

• Must still prepare and circulate financial statements
• Must comply with approved accounting standards

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