Under the Companies Act 2016 (CA 2016), any company that has elected to be exempted from audit is required to prepare and lodge its unaudited financial statements with the Companies Commission of Malaysia (SSM). These financial statements must be accompanied by the necessary reports and certifications to ensure compliance with statutory requirements.

Requirements for Lodgement

Companies opting for audit exemption must adhere to the following:

1. Unaudited Financial Statements:

• Must be prepared in accordance with the applicable approved accounting standards pursuant to subsection 244(1) of the CA 2016.
  2. Accompanying Reports:
• Directors’ Report– A statement on the company’s financial position and affairs, including significant developments during the financial year.
• Statement by Directors– A declaration by the directors affirming the accuracy and fairness of the financial statements.
• Statutory Declaration– A sworn statement verifying the truthfulness of the financial information provided.
• Any Other Required Reports– This includes documents mandated by regulatory bodies, such as lodgements pursuant to sections 251 and 252 of the CA 2016.
  3. Audit Exemption Certificate:
• The unaudited financial statements must also be accompanied by an audit exemption certificate, which must explicitly state compliance with sections 258 and 259 of the CA 2016.
• This certificate serves as a formal declaration that the company meets the criteria for audit exemption and has fulfilled all relevant reporting obligations.

Compliance with CA 2016

Companies must ensure strict adherence to the provisions outlined in the CA 2016 when preparing and submitting unaudited financial statements. Failure to comply may result in penalties or regulatory action by the Registrar.

At EMS Group, we provide comprehensive assistance in the preparation and lodgement of unaudited financial statements and all required reports.

Contact us today to ensure a smooth and compliant filing process!