MALAYSIA AUDIT FEES SCHEDULE AND TABLE
The Malaysia Institute of Accountants (MIA) introduced Practice Guide (RPG) 7 regarding the determination of audit fees for statutory auditing services in Malaysia starting from March 1, 2010. This decision was prompted by several factors:
The increased burden of compliance due to stricter auditing standards.
Rising operational costs.
The need to safeguard the professionalism of auditors amidst competitive pricing practices.
Although the RPG 7 has been removed from the website by the Council to adhere to the Competition Act (CA) 2010 and prevent any potential violations, it will still be referenced as part of the guidelines for associated auditors when establishing audit fees for statutory audit services in Malaysia.
Audit Fee Schedule & Table
Fee-coefficient Percentage Table
(i) Gross Turnover or Total Assets Basis
Gross Assets or Turnover for every ringgit of | Cumulative Ringgit (RM) | Rate (%) | Fees (RM) | Cumulative Fees (RM) |
Dormant (Minimum audit fee) | - | - | 800 | - |
The first 100,000 | 100,000 | 1.000% | 1,000 | 1,000 |
The next 150,000 | 250,000 | 0.438% | 675 | 1,675 |
The next 250,000 | 500,000 | 0.313% | 783 | 2,440 |
The next 500,000 | 1,000,000 | 0.188% | 940 | 3,380 |
The next 1,500,000 | 2,500,000 | 0.125% | 1,875 | 5,255 |
The next 2,500,000 | 5,000,000 | 0.100% | 2,500 | 7,755 |
The next 5,000,000 | 10,000,000 | 0.094% | 4,700 | 12,455 |
The next 10,000,000 | 20,000,000 | 0.100% | 10,000 | 22,455 |
Above 20,000,000 | Negotiable | >22,455 |
(ii) Total Operating Expenditure Basis
Gross Assets or Turnover for every ringgit of | Cumulative Ringgit (RM) | Rate (%) | Fees (RM) | Cumulative Fees (RM) |
Dormant (Minimum audit fee) | - | - | 800 | - |
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 |
Above 2,000,000 | Negotiable | >10,625 |
This practice guide outlines the criteria for determining a fair level of compensation, in line with the delivery of professional assurance services of a satisfactory and acknowledged caliber. Adequate compensation aims to incentivize practitioners to uphold and enhance the quality of their services.
In crafting this guide, MIA followed a structured approach:
Identifying pertinent issues.
Conducting research on prevailing practices both domestically and internationally.
Engaging with diverse stakeholders.
Seeking input from relevant regulatory bodies when necessary.