The Malaysian Institute of Accountants (MIA) launched a booklet ‘Why Audit Matters to SMEs’ today to illustrate the value of an external audit for owners and managers of Small and Medium Enterprises (SMEs).
The publication of this booklet is timely in light of the current market discourse on the issue of audit exemption of dormant and small private companies.
The booklet provides a quick guide in illustrating the value of an audit to various stakeholders and emphasises the benefits derived from the decision to have accounts audited.
The main message of the booklet conveys that the cost of audit to an entity should not be considered in isolation of the benefits to be derived by that entity.
An audit is an important undertaking designed to yield a reasonable level of assurance, through independent verification, of important financial information.
Whatever cost savings that may be achieved, the benefits of having an audit outweigh them.
MIA is of the view that a comprehensive analysis needs to be carried out and appropriate dialogues conducted with all relevant stakeholders, given the far-reaching consequences of audit exemption across the regulatory and financial reporting ecosystem.
Currently, all companies enjoying the privilege of limited liability must subject their businesses to mandatory audits to safeguard the interest of third party users and other stakeholders.
An audit can be considered to be a service to the public at large and it is a small price to pay for the limited liability protection that a company enjoys.
The booklet illustrates the value of an audit to various stakeholders and emphasises the benefits derived from the decision to have accounts audited.
Among others, audit brings financial discipline, which is especially important as under the new Companies Act 2016, increased liabilities will be imposed on company directors for failing to prepare adequate financial statements.
The penalty imposed under the new Act is a fine not exceeding five hundred thousand ringgit or imprisonment for a term not exceeding three years or both.
Furthermore an external audit ensures proper tax returns are filed with the Inland Revenue Board (IRB).Section 77A(4) of the Income Tax Act requires tax returns furnished by companies to be based on audited accounts.
Proper tax returns based on audited accounts could actually save SMEs from penalties which could exceed their audit fees.
Given the importance of audit and its relevance to various stakeholders, MIA had pro-actively published this reader-friendly booklet which will be distributed to SMEs and the relevant stakeholders during MIA engagement sessions in early 2017. - BERNAMA
Bernama
Wed Dec 14 2016
![Why audit matters to SMEs Why audit matters to SMEs](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2016-12/51481709840_CalculationGeneric.jpg)
Proper tax returns based on audited accounts could actually save SMEs from penalties which could exceed their audit fees. - Filepic
![Dewan Rakyat lulus RUU Agensi Kawalan dan Perlindungan Sempadan Malaysia Dewan Rakyat lulus RUU Agensi Kawalan dan Perlindungan Sempadan Malaysia](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41721021538_TBSHAMSUL.jpg)
Dewan Rakyat lulus RUU Agensi Kawalan dan Perlindungan Sempadan Malaysia
Rang Undang-Undang Agensi Kawalan dan Perlindungan Sempadan Malaysia 2024 yang bertujuan menubuhkan MCBA diluluskan persidangan Dewan Rakyat, hari ini.
![PAC akan mulakan prosiding isu dibangkit LKAN Siri 2/2024 PAC akan mulakan prosiding isu dibangkit LKAN Siri 2/2024](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/61710922383_MasErmieyatiSamsud.jpg)
PAC akan mulakan prosiding isu dibangkit LKAN Siri 2/2024
Jawatankuasa Kira-Kira Wang Negara (PAC) akan memulakan prosiding bagi empat isu yang dibangkitkan dalam Laporan Ketua Audit Negara (LKAN) Siri 2/2024.
AWANI Ringkas: Kes bunuh Nur Farah Kartini | Skandal LCS
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar
Chong Zhemin, tindakan tersebut seolah-olah satu penghinaan paling besar kepada Parlimen yang telah meluluskan pindaan Perlembagaan Persekutuan berkait Akta Antilompat Parti.
Masuk Pas untuk sama-sama susah dengan rakyat - ADUN Rembia
Muhamad Jailani berkata, sebelum ini beliau pernah menghantar surat kepada Lembaga Disiplin UMNO memohon untuk memecat keahliannya daripada parti Melayu itu.
[TERKINI] Astro dipilih sebagai penyiar rasmi Olimpik Paris 2024
Astro dipilih sebagai penyiar rasmi bagi Sukan Olimpik Paris 2024 bermula hujung bulan ini.
[TERKINI] Speaker DUN Melaka tunggu surat rasmi Muhammad Jailani
DUN Melaka masih menunggu surat rasmi daripada Pas berhubung tindakan ADUN Rembia, Datuk Muhamad Jailani Khamis yang menyertai Pas.
Sasar sumbang RM500 bilion kepada kdnk tempoh tiga tahun
Selangor perlu merancakkan semula kapasiti pembuatan untuk tidak hanya memenuhi keperluan tempatan, tetapi menjadikan negeri itu sebagai asas kepada pelan peluasan ke rantau Asia Tenggara dan Asia.
![Wanita dihempap kayu balak mula sedarkan diri Wanita dihempap kayu balak mula sedarkan diri](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61720789446_Wanitadihempapkay.jpg)
Wanita dihempap kayu balak mula sedarkan diri
Wanita yang nyaris maut akibat dihempap kayu balak dalam kejadian di lampu isyarat di Persimpangan Bendahara, Jalan Gua Musang-Kuala Krai di sini 9 Julai lepas, kini dilaporkan mula sedarkan diri.
Sah suspek anggota polis
Ketua Polis Selangor, Datuk Hussein Omar Khan mengesahkan suspek bunuh Nur Farah Kartini, ialah anggota polis.
Suspek juga yang dipercayai teman lelaki mangsa dan bertugas di Perak.
Suspek juga yang dipercayai teman lelaki mangsa dan bertugas di Perak.
![MIA lantik presiden, naib presiden baharu MIA lantik presiden, naib presiden baharu](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-12/41701657508_MIA.jpg)
MIA lantik presiden, naib presiden baharu
Mohamad Zabidi dilantik sebagai ahli Majlis MIA pada 15 Dis, menggantikan Datuk Bazlan Osman yang tempoh perkhidmatan berakhir pada 30 Nov.
![Kita mampu capai sasaran 60,000 akauntan - Johari Kita mampu capai sasaran 60,000 akauntan - Johari](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2017-10/41507374431_DSJohariAbdulGhani.jpg)
Kita mampu capai sasaran 60,000 akauntan - Johari
Kerajaan optimis untuk melahirkan 60,000 akauntan profesional menjalang tahun 2020.