Compilation of Unaudited Financial Statements

In Malaysia, preparing unaudited financial statements refers to the preparation and submission of financial statements without review by an external auditor. These statements are prepared by internal personnel or accountants and are primarily used for internal management and decision-making, rather than for external reporting.

Unaudited financial statements typically include the balance sheet, income statement, and cash flow statement. Although these statements can provide an overview of the company's financial status, they may not be as reliable in terms of accuracy and completeness as audited statements due to the lack of verification by an independent auditor.

In Malaysia, companies are generally required to submit these statements to meet basic legal requirements under the Companies Act, though some companies may need to undergo regular audits, especially those subject to auditing requirements.

Types of audit firms that can be prepared

Compilation of Unaudited Financial Statements – Dormant Company

In Malaysia, a dormant company refers to a company that has had no business activities during a specific accounting period.

Even if the company is dormant, it is required to prepare unaudited financial statements, which typically show zero transactions.

Dormant companies can apply for an audit exemption to reduce related costs and workload. These statements are used to maintain legal compliance.

Compilation of Unaudited Financial Statements – Active Company

In Malaysia, active companies are required to prepare unaudited financial statements, even if these statements have not been reviewed by an external auditor.

The financial statements should include the company’s balance sheet, income statement, and cash flow statement, reflecting the company’s actual financial position.

Although the statements are unaudited, they must still accurately reflect the financial situation of the company’s operations to meet legal requirements and for internal management purposes.

When we prepare unaudited financial statements for you, you will receive the following information:

Director’s Report and Statement

Detailed description of the company’s operating activities, financial condition, and future outlook during the financial year.

Detailed Profit and Loss Statement for the Year End

The income statement (also known as the profit and loss statement) provides information about sales, expenses, and profits, giving you a clearer understanding of the company’s performance over a period of time (e.g., one year).

Detailed Balance Sheet as at a certain date

The balance sheet (also known as the statement of financial position) provides information about assets, liabilities, and equity, and shows the company’s position at a specific point in time.

Company Compliance Notes to Financial Statement

These are the regulations and standards that the company must follow when preparing and submitting financial statements to ensure accuracy, transparency, and legality.

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