Much more than just checking the numbers
We believe the statutory audit should be viewed as a chance, not a cost. This is your chance to take a look under the hood of your business and make sure everything is running as it should – and if it’s not, it’s your chance to identify the issues and take steps to fix them.
Purpose of an Audit
Typically, the owners of a company (ie. the shareholders) do not closely participate in the day-to-day management of the company. The owners employ someone who’s competent to manage the company on their behalf and maximise their return on investments.
Therefore, auditors are generally appointed by the owners to independently examine the financial reports prepared by the management. An audit underpins the trust between management and owners (as well as other stakeholders – banks, investors, suppliers and customers).
The primary purpose of a FS audit is to enhance the degree of confidence in the financial statements, so that users can rely on the financial statements to make economic decisions.
How are Audit Fees calculated?
The Malaysia Institute of Accountants (MIA) has published Recommended Practice Guide (RPG) 7: A Guide to Charging for Professional Assurance Services to set out the basis for establishing a reasonable level of statutory audit fee, with effect from 1 March 2010.
The MIA decided to withdraw RPG 7 with effect from 1 June 2015 in order to uphold the spirit of the Competition Act (CA) 2010 and not breach any of its provisions. However, it still become part of our guideline in establishing our audit fees.