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Current Issue in Auditing
Current Issue in Auditing
Current Issue in Auditing
As stated in the Companies Act 1965, regardless of the size,private or public, all companies in Malaysia need to have their annual accounts audited by an independent auditor. The purpose of audit is to inform shareholders about how the directors have managed the companys finances on their behalf. Audit also helps the shareholders to make informed decisions based on how the company is performing.
Helps
public know about the SMEs performance. Provides reasonable assurance based on accounting standards. Easy to receives loans from third parties. Help in expanding the SMEs Help the public realise the absence of SMEs in the business market.
increase
in qualified accountants burden increase in the workload of directors and staff involved in the annual audit not relevent due exp: no segregation of job too much errors; lack of expertise by the management
cannot
afford qualified auditors to audit SMEs most of the SME's has low turnover, which are selffinancing no need for external capital contributor as they closely manage by shareholder
According
to the hypothesis extract from the study, Hypothesis 1,2 and also Hypothesis 3 is supported. Factors such as audit value, audit burden and audit fees have been shown to exert a significant influence in acceptence level of audit exemption among SMEs in Malaysia. Its depend on how is the SMEs viewed about the value of audit and audit exemption, SMEs need to weight the advantages and disadvantages of being audited or being exempted from audit before making decisions