Want a Clear Estimate of Your Company’s Audit Fees?
SASCO helps coordinate your company’s audit and provides a transparent quote on audit fees based on your actual business size and complexity — not a generic rate card.
One of the most common questions we get from company directors is — "what does my company’s annual audit actually cost?" The honest answer: there’s no fixed official fee schedule for private company audits in Malaysia anymore. The Malaysian Institute of Accountants (MIA) once had a recommended audit fee scale, but that guidance was withdrawn over concerns it could breach the Competition Act 2010 (a similar shift has happened in several other countries for the same competition-law reason).
What this means for you: audit fees are now determined entirely through market negotiation between the audit firm and the client, based on company size, transaction complexity, industry, bookkeeping quality, and risk. This article shares the market estimate ranges we commonly see for Malaysian SMEs, the factors that drive cost, and when your company actually qualifies for an audit exemption.
Important note: the figures in this article are general market estimates based on experience across firms in Malaysia, not official rates set by SSM or MIA. Always get a written quote from a registered auditor for an exact figure based on your company’s situation.
Why Is There No Official Audit Fee Schedule Anymore?
MIA previously issued a Recommended Practice Guide suggesting an audit fee scale based on company turnover. However, fee-scale guidelines of this kind are generally viewed as carrying competition-law risk under the Competition Act 2010, enforced by the Malaysia Competition Commission (MyCC) — as they could be interpreted as indirect price coordination among competing professionals.
As a result, audit fees in Malaysia are now entirely market-based — every audit firm is free to set its own rates based on the actual scope of work.
Factors That Determine Your Company’s Audit Cost
- Company size (turnover & total assets) — the larger the company, the more transactions need to be reviewed
- Corporate structure complexity — companies with subsidiaries or related-party transactions require more work
- Industry — sectors like construction, real estate, and finance typically carry higher risk and need additional audit procedures
- Quality of existing bookkeeping — clean, well-organised records (e.g. using cloud accounting software) reduce the auditor’s time compared to messy manual records
- First-year audit vs recurring audit — first-year audits are usually more expensive since the auditor needs to understand the company’s operations from scratch
- Tight deadlines — rushed/urgent audit requests are usually charged a premium
Estimated Audit Fee Ranges by Company Size
The ranges below are general market estimates for a typical Sdn Bhd (not a public/listed company) with straightforward operations. Actual figures can vary significantly based on the factors listed above.
| Company Size | Estimated Turnover | Estimated Audit Fee/Year |
|---|---|---|
| Dormant / non-operating company | RM0 | May qualify for audit exemption (see below) |
| Micro SME | Below RM1 million | Estimated RM2,500 – RM4,500 |
| Small-to-medium SME | RM1 million – RM5 million | Estimated RM4,000 – RM8,000 |
| Medium SME | RM5 million – RM20 million | Estimated RM8,000 – RM18,000 |
| Larger / complex structure | Above RM20 million | Negotiated individually based on scope |
These figures are a rough guide only based on SME market trends in Malaysia — not fixed rates. Different firms can quote well outside this range depending on their own business model.
When Does a Company Qualify for Audit Exemption?
Not every Sdn Bhd is required to be audited every year. Under SSM’s Practice Directive 3/2017 (and related amendments), three categories of companies qualify for audit exemption:
- Dormant company — no accounting transactions during the current and immediately preceding financial year.
- Zero-revenue company — no revenue during the current financial year and the two immediately preceding financial years, and total assets not exceeding RM300,000 for the same period.
- Threshold-qualified company — revenue not exceeding RM3 million, total assets not exceeding RM3 million, and no more than 30 employees — all three conditions must be met for the current financial year and the two immediately preceding financial years.
Even if exempt from audit, the company is still required to prepare unaudited financial statements and lodge them with SSM within the stipulated timeframe. The exemption only removes the audit requirement, not the requirement to prepare financial statements.
What Else Affects Audit Fees Besides Size?
Two companies with the same turnover can receive very different audit fee quotes. Common reasons include:
- Transaction volume — retail/e-commerce businesses with thousands of small transactions can take longer than service businesses with few high-value transactions.
- Inventory & fixed assets — companies with physical stock or high-value fixed assets need additional verification procedures (physical count, valuation).
- Related-party transactions — intercompany loans within the same group require more detailed review.
- Change of auditor — a new firm usually charges more in the first year due to opening balance review work.
Smart Ways to Manage Your Company’s Audit Costs
- Keep your bookkeeping records clean throughout the year (not last-minute catch-up) — this has the biggest impact on cost.
- Use cloud accounting software like Xero so auditors can easily access your records.
- Get at least 2-3 quotes from different firms before deciding — but don’t choose purely on price; make sure the firm is registered and licensed.
- Ask whether the quote includes additional services (e.g. preparing financial statements) or if those are charged separately.
To understand the difference between Big 4 and boutique firms in terms of cost and service level, read Big 4 vs Boutique Accounting Firm: Which Is Right for Your SME?. For a full picture of when audits are actually required, read Company Audit in Malaysia: When Is It Required?.
Annual audits are just one part of your company’s compliance calendar. To understand other separate annual obligations, read Annual Return for a Sdn Bhd in Malaysia: Complete Guide.
How Can SASCO Help?
SASCO helps SMEs manage the entire annual audit process — from preparing records, coordinating with registered auditors, to lodging financial statements with SSM. We also help assess whether your company qualifies for audit exemption.
Our services include:
- Audit-ready bookkeeping preparation
- Coordination with registered audit firms
- Audit exemption eligibility assessment
- Lodging financial statements with SSM
Want a transparent audit cost estimate for your company?
Contact SASCO for a quote based on your business’s actual size and complexity.
Official References
Audit fees are market estimates, not official rates. Audit exemption criteria may be updated by SSM from time to time — confirm the current status before acting.
Frequently Asked Questions
How much does an audit cost for a small Sdn Bhd in Malaysia?
Market estimates for SMEs with turnover below RM1 million typically fall between RM2,500 and RM4,500 per year, but this is not a fixed rate — get an actual quote from a registered auditor.
Why is there no official audit fee schedule in Malaysia?
MIA previously had a recommended audit fee scale, but it was withdrawn due to potential conflict with the Competition Act 2010. Audit fees are now determined entirely through market negotiation.
Are all Sdn Bhd companies required to be audited every year?
No. Dormant companies, zero-revenue companies (with assets below RM300,000), and threshold-qualified companies (revenue & assets below RM3 million, under 30 employees) qualify for audit exemption under SSM’s Practice Directive 3/2017.
If I qualify for audit exemption, do I still need to prepare financial statements?
Yes. Audit exemption only removes the audit requirement — the company must still prepare and lodge unaudited financial statements with SSM.
Why is the first-year audit fee usually higher?
The auditor needs to understand the company’s operations, systems, and opening balances from scratch, which takes more time than a recurring audit in subsequent years.
How can I reduce my company’s audit costs?
Keep your bookkeeping clean throughout the year, use cloud accounting software, and avoid last-minute rushed audit requests, which are usually charged at a premium.
Can I switch audit firms every year to find the best rate?
You can, but keep in mind a new firm usually charges more in the first year due to opening balance review work. Consider long-term stability rather than just the lowest price.
Who is allowed to conduct a company audit in Malaysia?
Only auditors registered and approved by the Companies Commission of Malaysia (SSM) as an "approved company auditor" can conduct a statutory audit.
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