New Qualifying Criteria for Audit Exemption

The Companies Commission Malaysia (CCM) issued Practice Directive No. 10/2024 (P.D. 10/2024)
introducing new criteria for audit exemption for private companies, effective from 1 January 2025.
These new criteria will be implemented in phases from 2025 to 2027, with full implementation for
financial periods starting on or after 1 January 2027.
Under the new audit exemption criteria, a qualifying company is eligible for audit exemption if it fulfils at least two of the following three qualifying criteria:

The number of employees at the end of the current financial year and in the immediate past 2
financial years do not exceed 30.

The new criteria for audit exemption will be introduced in phases over a three-year period, from 2025 to 2027.

Annual revenue of the company during the current financial year and the immediate past 2
financial years do not exceed RM3,000,000;

Total assets of the company in the current statement of financial position and in the immediate
past 2 financial years do not exceed RM3,000,000; or