Audited vs Unaudited Financial Reports in Malaysia
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Audited vs Unaudited Financial Reports in Malaysia
📌Definition & Key Differences
📝 Submission Requirements
🔹Audited Report:
🔹 Unaudited Report (Audit Exempt):
Only applicable if company meets audit exemption criteria under SSM PD 10/2024
🧾 Documents Typically Required
Summary
If doing Audited Report:
In Malaysian context, under the Companies Act 2016, both audited and unaudited statements must be accompanied by a statutory declaration by a director (or authorized person) verifying that the statements are true and correct, and in compliance with the law. This is required under Section 251 / 252.
𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
Website www.thks.com.my
Facebook https://bit.ly/42XKWsk
Instagram https://bit.ly/42Uqf0e
Linkedin https://bit.ly/3EH885M
𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
Website www.ktp.com.my
Instagram https://bit.ly/3Rko5kN
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn
𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞
An internal community for our colleagues on work and leisure.
Tiktok http://bit.ly/3u9LR6Q
Youtube http://bit.ly/3ppmjyE
Facebook http://bit.ly/3ateoMz
Instagram https://bit.ly/3jZpKLo
𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
Instagram https://bit.ly/3u2PxHg
Facebook http://bit.ly/3rPxz9o
#KTP #Thk
#Myktp
#ktplifestyle
#ktpcareer
#24years
📌Definition & Key Differences
| Aspect | Audited Financial Report | Unaudited Financial Report |
|---|---|---|
| Prepared by | Company, reviewed and certified by licensed external auditor | Prepared internally by management; no external audit |
| Legal status | Mandatory for companies that do not qualify for audit exemption under Companies Act 2016 | Allowed only for private companies that meet audit exemption criteria under SSM Practice Directive 10/2024 |
| Audit opinion | Yes — auditor provides opinion on fairness and compliance | No audit opinion — statements not independently verified |
| Level of assurance | High — provides confidence to stakeholders (investors, banks, regulators) | Low — only internal verification, limited external use |
| Submission method | MBRS (XBRL format) to SSM within 30 days of circulation | MBRS (XBRL) submission with audit exemption documents |
| Key documents |
Audited FS, auditor’s report, directors’ report, statement by directors, statutory declaration |
Unaudited FS, directors’ report, audit exemption certificate, statutory declaration |
📝 Submission Requirements
🔹Audited Report:
- Appoint a License auditor
- Prepare complete audited financial statements
- Include:
- Auditor’s report
- Directors’ report
- Statement by directors
- Statutory declaration
- Circulate to shareholders within 6 months of financial year end
- Lodge with SSM via MBRS within 30 days after circulation
🔹 Unaudited Report (Audit Exempt):
Only applicable if company meets audit exemption criteria under SSM PD 10/2024
- Ensure company qualifies (revenue, assets, and employee thresholds)
- Prepare unaudited financial statements (internally)
- Include:
- Directors’ report
- Audit Exemption Certificate
- Statement by directors
- Statutory declaration
- Circulate to shareholders within 6 months of financial year end
- Lodge with SSM via MBRS within 30 days after circulation
| Purpose | Audited Report | Unaudited Report |
|---|---|---|
| Legal Compliance | Required by law unless exempt | Valid only if company qualifies under SSM exemption rules |
| Assurance for Stakeholders | Provides verified information; builds trust | Limited to internal use or simple ownership structures |
| Bank Loans / Financing | Usually required by banks and investors | Often not accepted for financing |
| Internal Accountability | Enhances governance and accountability | Sufficient for closely held or dormant companies |
| Investment / IPO Readiness | Essential for due diligence, valuation, and compliance | Not suitable for companies preparing for listing or M&A |
| Cost Consideration | Higher cost (audit fees, time) | Lower cost, easier process |
| Tax Submission Support | Supports accurate and defensible tax reporting | Acceptable for small entities if records are proper |
| Avoiding Penalties | Ensures full compliance with Companies Act | Requires careful adherence to exemption criteria |
🧾 Documents Typically Required
| Document | Audited | Unaudited (Audit Exempt) |
|---|---|---|
| Financial Statements | ✔ | ✔ |
| Auditor’s Report | ✔ | ✘ |
| Directors’ Report | ✔ | ✔ |
| Statement by Directors | ✔ | ✔ |
| Statutory Declaration (Sumpah) | ✔ | ✔ |
| Audit Exemption Certificate | ✘ | ✔ |
Summary
If doing Audited Report:
- Engage a licensed auditor and perform the audit
- Prepare audited financial statements + auditor’s report + directors’ report etc.
- Prepare & do the statutory declaration
- Circulate to shareholders within 6 months of year end
- Lodge with SSM (via MBRS / in XBRL) within required deadline
- Ensure all accompanying statutory declarations etc. are signed
- Submit digitally via MBRS (XBRL) once applicable
- Confirm that company meets audit exemption criteria under PD 10/2024
- Prepare financial statements (unaudited) under applicable accounting standards
- Prepare Audit Exemption Certificate and do the statutory declaration (confirming eligibility)
- Prepare directors’ report, statement by directors, statutory declaration
- Circulate to shareholders within 6 months of year end
- Lodge / submit all required documents (unaudited FS + reports + exemption certificate + declaration) to SSM within 30 days from distribution
- Submit digitally via MBRS (XBRL) once applicable
In Malaysian context, under the Companies Act 2016, both audited and unaudited statements must be accompanied by a statutory declaration by a director (or authorized person) verifying that the statements are true and correct, and in compliance with the law. This is required under Section 251 / 252.
𝐕𝐢𝐬𝐢𝐭 𝐮𝐬
Wisma 𝐓𝐇𝐊, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma 𝐊𝐓𝐏, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
𝐓𝐇𝐊 (𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐢𝐚𝐥, 𝐀𝐜𝐜𝐨𝐮𝐧𝐭/𝐏𝐚𝐲𝐫𝐨𝐥𝐥, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients
Website www.thks.com.my
Facebook https://bit.ly/42XKWsk
Instagram https://bit.ly/42Uqf0e
Linkedin https://bit.ly/3EH885M
𝐊𝐓𝐏 (𝐀𝐮𝐝𝐢𝐭,𝐓𝐚𝐱, 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
Website www.ktp.com.my
Instagram https://bit.ly/3Rko5kN
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn
𝐊𝐓𝐏 𝐋𝐢𝐟𝐞𝐬𝐭𝐲𝐥𝐞
An internal community for our colleagues on work and leisure.
Tiktok http://bit.ly/3u9LR6Q
Youtube http://bit.ly/3ppmjyE
Facebook http://bit.ly/3ateoMz
Instagram https://bit.ly/3jZpKLo
𝐊𝐓𝐏 𝐂𝐚𝐫𝐞𝐞𝐫
An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.
Instagram https://bit.ly/3u2PxHg
Facebook http://bit.ly/3rPxz9o
#KTP #Thk
#Myktp
#ktplifestyle
#ktpcareer
#24years
