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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 statutory 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.
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 associated auditor guideline in establishing their audit fees for performing their 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% | 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
