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Malaysia Audit Fees Schedule and Table

Malaysia Institute of Accountants (MIA) has recommended Practice Guide (RPG) 7 for Audit Fee Charge (New Audit Fee) by Audit Firm for providing auditing services in Malaysia with effect from 1 March 2010.

Reasons for MIA to issue this Practice Guide is:

  • Increased in compliance burden due to higher auditing standards requirements.
  • Increased in operation cost.
  • To ensure auditors professionalism are not affected due to “price war” among competitors.

 

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% 657 1,657
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 recommended practice guide sets out the basis of establishing a reasonable level of remuneration, commensurate with the provision of professional assurance services of an acceptable and recognized standard.  A reasonable level of remuneration will encourage the practitioners to maintain and upgrade the quality of services rendered.

In developing this practice guide, MIA had conducted the following due process:

  • Determining the issues at hand
  • Research into current practice within and outside Malaysia
  • Consultation with various stakeholders
  • Consultation with relevant regulatory authorities, where appropriate

 
Although the RPG 7 was removed by the Council from the website in order to uphold the spirit of the Competition Act (CA) 2010 and not breach any of its provisions, yet it will still become part of our guideline in establishing our audit fees.