WE refer to the “Text Us!” message “Help for companies” (The Star, March 24) by Ashraf, who suggested that the Companies Commission of Malaysia (SSM) introduce special measures to assist dormant companies especially in reducing the costs of auditing. For the purpose of audit exemption pursuant to section 267(2) of the Companies Act 2016, SSM issued Practice Directive No. 3/2017 (PD 3/2017) on Aug 4,2017, which sets out the qualifying criteria for audit exemption for different categories of private companies, namely Dormant Companies, Zero-Revenue Companies and Threshold-Qualified companies. Threshold-Qualified companies are companies having revenue of less than RM100,000 for three consecutive financial years and, in the preceding two financial years, having assets of less than RM300,000 and not more than five employees. The audit exemption criteria were introduced to ensure that dormant and smaller companies are not unduly burdened with high compliance costs while ensuring that the assurance provided by the auditing process would still be intact for larger companies.

Source: The Star April 14, 2021 00:11 UTC