Audit firms in Malaysia are professional service providers that specialize in reviewing and verifying the accuracy of financial statements and records of both public and private companies. They operate under the regulatory framework of the Malaysian Institute of Accountants (MIA) and comply with the Malaysian Financial Reporting Standards (MFRS).
Audit firms play a crucial role in enhancing financial transparency, helping businesses with tax planning, risk management, and ensuring compliance with local and international accounting standards. Some of the top audit firms in Malaysia include international ‘Big Four’ entities like Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG, as well as local firms.
Audit Firm in Malaysia
How do I choose the best audit firm in Malaysia?
Choosing an audit firm can be a crucial decision for your business. Here’s a guide to help you select the best audit firm in Malaysia:
- Accreditation: The audit firm should be accredited by the Malaysian Institute of Accountants (MIA), which is the governing body for accountants in Malaysia.
- Experience and Expertise: Look for a firm with experience in your industry. The firm should have comprehensive understanding of your industry’s specific requirements and the potential risks involved.
- Firm size: Depending on the size and complexity of your business, you may prefer a larger, internationally recognized firm, or a smaller, more personalized firm. Large firms typically have more resources, but smaller firms might provide more personalized service.
- Range of services: If you need more than just audit services, look for a firm that offers a broad range of services such as tax planning, corporate finance advice, management consulting, etc.
- Communication and Responsiveness: The audit firm should be easily reachable and responsive to your queries. They should be able to communicate complex information effectively.
- Cost: Whilst cost should not be the only determining factor, it is important to consider. Get quotations from multiple firms and compare their prices and the services they offer.
- Reputation: Consider the firm’s reputation in the industry. You can assess this by speaking to their previous or current clients, and searching for online reviews and feedback.
- Professionalism and Integrity: The firm should exhibit high levels of professionalism and integrity. They should be dedicated to maintaining confidentiality and delivering unbiased, accurate reports.
- International Network: If your business operates in multiple countries, you might need an audit firm that is part of a global network and can handle cross-border issues.
- Technological Capability: With the rising importance of digital technology in business, an audit firm with robust technological capabilities can provide more efficient and effective services.
Remember, choosing an audit firm is an investment, so take your time and do your research. It might be helpful to create a shortlist and conduct interviews or meetings to find the best fit for your company.
List of top audit firms in Malaysia
Below are some audit firms in Malaysia. We do not categorise them based on the size of the audit firm, such as big, medium, or small. You may have to examine them individually.
- Ernst & Young (EY)
- KPMG
- PricewaterhouseCoopers (PwC)
- Deloitte
- Baker Tilly Monteiro Heng
- Crowe Malaysia PLT
- BDO Malaysia
- Grant Thornton Malaysia
- RSM Malaysia
- Mazars Malaysia
- Moore Stephens AC
- UHY Advisory KL
- Nexia SSY
- SJ Grant Thornton
- DFK International
- PKF Malaysia
- Morison AAC
- HLB Ler Lum
- Ecovis Malaysia
- Kassim Chan & Co.
Please note that the standing and reputation of audit firms can change over time, so it’s recommended to do your own research when selecting a firm.
What makes a good audit firm in Malaysia?
A good audit firm in Malaysia, just like in any other country, should possess certain qualities to ensure they provide top-notch services to their clients. Here are some factors:
- Accreditation: The audit firm should be registered with the Malaysian Institute of Accountants (MIA) and should have other relevant certifications.
- Reputation: Good audit firms usually have a strong reputation. Companies can look for references or reviews about the firm.
- Experience: The firm should have a team of auditors who hold a considerable amount of experience in the field. This ensures they can handle a wide array of scenarios and issues.
- Industry Knowledge: A good audit firm should possess deep understanding of industries they serve. This can help in providing tailored solutions for businesses operating in those industries.
- Transparency: The audit firm should be transparent about all matters related to the audit. This includes a clear explanation of their audit process, fees, and any issues that arise during the audit.
- Quality of Service: The quality of service should be top-notch. This includes aspects like responsiveness, attention to detail, and thoroughness in their work.
- Adherence to standards: The firm should strictly follow the International Standards on Auditing (ISA) and local auditing standards.
- Use of Technology: In this digital era, a good audit firm should leverage technology to improve the efficiency and effectiveness of their audit process.
- Professionalism: The audit firm should uphold high standards of integrity and confidentiality. They should be unbiased and independent in their approach.
- Continuous Learning and Development: The firm should invest in continuous learning and development to stay up-to-date with changes in accounting standards, laws, and industry trends.
Remember, the effectiveness of an audit depends largely on the audit firm chosen, so it’s crucial that companies select their auditors carefully.
What are the benefits of hiring an audit firm that is based in Malaysia?
Hiring audit firms in Malaysia brings significant benefits to businesses in the country. Some of these benefits include:
- Compliance with Legal Requirements: In Malaysia, companies are legally required to conduct annual audits. Hiring audit firms ensures companies adhere to these legal requirements.
- Ensuring Financial Accuracy: Audit firms help in ensuring that the financial reports presented by the company are accurate. They check for inconsistencies, errors, or fraudulent activities.
- Enhancing Credibility: Regular audits by a reputable audit firm enhance the credibility of the company. The assurance provided by these firms can boost investor confidence and can be beneficial in attracting potential investors or securing loans.
- Risk Management: Audit firms can help identify potential risks that a company might face in the future. They can provide valuable insights and recommendations to manage these risks.
- Improving Internal Controls: Audit firms can help improve a company’s internal controls by identifying weaknesses and suggesting improvements. This can help prevent fraud and improve operational efficiency.
- Specialist Advice: Auditors have specific industry knowledge that can be beneficial to the company. They can provide advice on tax planning, cost reduction, strategic planning, and so on.
- Saving Time: By outsourcing auditing work to a professional firm, companies can save time and focus more on their core business activities.
- Assuring Transparency: A third-party audit firm ensures accountability and transparency in a company’s financial reporting. This improves governance and can enhance the company’s reputation.
- Access to a Network of Experts: Audit firms often have a network of experts in various fields. This can be particularly beneficial in complex cases that require specialized knowledge.
- Assistance in Mergers and Acquisitions: Audit firms can assist in due diligence processes related to mergers and acquisitions, ensuring all financial information is accurate and fair.