Qualifying Criteria For Audit Exemption Part 3 of 3

01eKTP 42

SSM Practice Directive No. 3/2017 – Qualifying Criteria For Audit Exemption For Certain Categories of Private Companies (Part 3).

02Other condition and Requirements

For company that fulfil the criteria for audit exemption may elects to be exempted from audit. However, there are other conditions and requirements as follows which need to be taken care of:

• an unaudited financial statements prepared in accordance with the approved accounting standards together with the directors’ report, statement by directors and statutory declaration are still required to be lodged with the Registrar within 30 days from the circulation date.
• Any one of the Director of the company shall sign a certificate certifying to the best of his knowledge and belief that the company is entitled to exemption from audit for a financial year end.
• a company is required to audit its accounts during the financial year if the company receives a notice in writing not later than one month before the end of the financial year from:any member or members holding not less than 5% of the total number of issued shares of the company;not less than 5% of the total number of members eligible to vote in the company; orthe Registrar.

a company is required to audit its accounts during the financial year if the company receives a notice in writing not later than one month before the end of the financial year from:

• any member or members holding not less than 5% of the total number of issued shares of the company;
• not less than 5% of the total number of members eligible to vote in the company; or
• the Registrar.

• Audit exemption is not application to a company which elects to lodge an exempt private certificate with the Registrar.