JALAN ECO SANTUARI 8/1C, PERSIARAN ECO SANTUARI, 42500 TELOK PANGLIMA GARANG, SELANGOR

Audit fee schedule in Malaysia

Rising Global Consultants

services-bg-1.jpg

Audit fee information

The Malaysian Institute of Accountants (MIA) has recommended the Practice Guide 7 (RPG 7) on audit fees, effective from March 1, 2010, for audit services in Malaysia

The Malaysian Institute of Accountants issued this practice guide for the following reasons:

  • Increased compliance burden due to higher audit standards requirements
  • Increased operational costs
  • To ensure that auditors’ professionalism is not affected by “price wars” among competitors

To balance fees with standards. There are primarily two methods for calculating these fees:

Based on time spent

Time-based billing reflects the costs incurred by partners and staff due to factors such as scope, complexity, and technical requirements while adhering to audit standards. Good cost control is crucial for maintaining the feasibility of practice. Therefore, audit practices will calculate fees based on audit costs

Based on value

Audit fees are influenced by factors such as the level of responsibility, risk, required skills, and the time needed for the work.

Empirical studies conducted by the accounting association have shown that audit fees are related to the value of total assets, total revenue, and operating expenses. Therefore, to maintain audit fees at a certain level, the association’s committee recommends using a coefficient list applied to the total assets or total revenue on the financial report to determine the audit fee.

(i) Based on total revenue or total assets Fee Table
Total Assets or Income per Ringgit Cumulative RM (RM) Rate (%) Fee (RM) Cumulative Fee (RM)
Dormant (Minimum Audit Fee) 800 800
First 100,000 100,000 1.000% 1,000 1,800
Next 150,000 250,000 0.438% 657 2,457
Next 250,000 500,000 0.313% 783 3,240
Next 500,000 1,000,000 0.188% 940 4,180
Next 1,500,000 2,500,000 0.125% 1,875 6,055
Next 2,500,000 5,000,000 0.100% 2,500 8,555
Next 5,000,000 10,000,000 0.094% 4,700 13,255
10,000,000 to 20,000,000 1,000 for every RM1,000,000 until RM20,000,000
Over 20,000,000 Negotiable (but each job is not less than RM20,000)
The fee result obtained using the total revenue or total assets calculation method needs to be relevant and close to the time-based billing result. If the total revenue or total assets calculation method is not applicable, we can use total operating expenses for the calculation, ensuring that this calculation is also relevant and close to the time-based billing result (ii) Based on total operating expenses
Per RM of operating expenses Accumulated RM (Ringgit Malaysia) Percentage (%) Fees (RM) Accumulated fee (RM)
The first 50,000 50,000 2.500% 1,250 1,250
The next 150,000 200,000 1.250% 1,875 3,125
The next 800,000 1,000,000 0.625% 5,000 8,125
The next 1,000,000 2,000,000 0.250% 2,500 10,625
Over 2,000,000 0.125%

Welcome to Contact Us

Phone Number: +60 3-8682 1802 | E-mail:  officer@rising.com.my