KUALA LUMPUR, March 13 — The Association of Chartered Certified Accountants (ACCA) has called for a phased approach to a proposed rise in audit exemption threshold, effectively removing the requirement for companies with annual revenue of less than RM3 million to be independently audited.
In a statement today, ACCA said it is suggesting a phased approach to an increase to RM3 million from the current level of RM100,000 over five years, starting with a threshold of RM500,000.
ACCA maritime Southeast Asia portfolio head Andrew Lim said a phased approach will allow stakeholders time and space to adjust and respond to shifting market forces.
He also warned about incorrect perceptions of the value of audit, saying that the conducting of independent audits has been conflated with administrative burdens.
“The Companies Commission of Malaysia (SSM) and other regulators need to highlight the importance and benefits of audits to both the companies themselves and those that they deal with, such as banks, tax authorities, or major creditors,” Lim added.
“With an abrupt and significant increase, there would be a significant risk of unintended consequences,” Lim added.
He said the ACCA hopes the SSM will extend the consultation period and engage with everyone who is affected by the proposed changes so that they have a chance to share their views.
ACCA said it is also concerned that an abrupt and significant increase in the audit exemption threshold might diminish the attractiveness of the accountancy profession, especially for young talent.
It also highlighted the short timeline for the consultation with members and other stakeholders.
— Bernama
