# Who Can Audit a Company in Malaysia: The Approved Company Auditor Regime

> Not every accountant may sign a company's audit report in Malaysia. Only an 'approved company auditor' under section 263 of the Companies Act 2016 qualifies, and the path there runs through three stages: MIA membership, a practising certificate, and the Minister of Finance's approval.

- Category: audit
- Language: en
- Status: published
- Updated: 2026-08-08
- Canonical: https://negaraku.md/en/audit/approved-company-auditor-qualification

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You can be a Chartered Accountant with the full title, an accounting degree, and years of experience — and still not be allowed to sign a company's audit report on your own. In Malaysia, the right to audit a company is a separate and tightly controlled licence, not something that comes automatically with professional membership.

The law calls it an "approved company auditor". Only a person holding this status may audit and sign a statutory audit report under the Companies Act 2016. This article explains the three stages a person must pass through to get there.

## What does "approved company auditor" mean?

Under the Companies Act 2016, an "approved company auditor" means a person who has been approved under section 263 as an auditor and whose approval has not been revoked. This phrase matters because it narrows who is lawfully permitted — not just any accountant, and not just any firm.

Section 263 gives that power to the Minister responsible for finance, that is, the Minister of Finance. The Minister may approve a person as a company auditor if satisfied that the applicant is of good character and capable of performing the duties of an auditor under the Act. In practice, the Minister of Finance has delegated this power to the Accountant General, so the actual application is submitted to the Accountant General's Department of Malaysia (JANM).

Approval is not permanent. Each approval, including a renewal, is valid for two years from the date of issue unless revoked earlier by the Minister.

## What are the three stages of the path?

Think of qualification as a three-rung ladder. You cannot skip any of the rungs.

1. **Chartered Accountant with the MIA.** You must first be registered as a Chartered Accountant with the Malaysian Institute of Accountants (MIA) under the Accountants Act 1967. This is the gateway into the profession.

2. **A valid MIA practising certificate.** Membership alone is not enough to practise publicly. You need to hold a valid practising certificate, which allows you to carry on public practice.

3. **Approval under section 263 (audit licence).** Finally, you apply to JANM, sit for and pass an interview, and receive approval as a company auditor. Only after this third stage may you sign a statutory audit report.

All three stages must remain active at the same time. If your practising certificate or MIA subscription lapses, your audit qualification is affected too.

## What are the eligibility criteria to apply?

The third stage is the most stringent. JANM sets a substantial experience threshold before a person is eligible to sit for the interview.

| Criterion | Requirement |
| --- | --- |
| Professional status | Chartered Accountant registered with the MIA + valid practising certificate |
| Citizenship / residency | Malaysian citizen or resident |
| Cumulative experience | At least 6 years of full-time work |
| Experience after MIA membership | At least 3 years (or 2 years for those who have worked abroad) |
| Audit experience | At least 5 years, with the most recent 2 years in a Malaysian environment |
| Audit hours & assignments | 7,500 audit hours and 40 audit assignments within the most recent 5 years |
| Supervisory role | At least 1,800 hours as an Audit Supervisor |
| Integrity | Not an undischarged bankrupt; no conviction for an offence involving fraud or dishonesty (in line with section 264, no time limit) |

In addition, first-time applicants must complete the Public Practice Program organised by the MIA before approval is granted.

## How does the interview work?

The interview is the main screen, and it is not a formality. The assessment panel comprises representatives of five bodies:

- Accountant General's Department of Malaysia (chair)
- Companies Commission of Malaysia (SSM)
- Malaysian Institute of Accountants (MIA)
- Securities Commission Malaysia (SC)
- Bank Negara Malaysia (BNM)

Interview topics cover accounting legislation, corporate governance, auditing standards, financial reporting requirements, and the regulatory framework. The presence of representatives from five regulatory bodies on a single panel shows that this assessment involves more than one regulatory stakeholder.

## How much is the fee and how long does the process take?

The direct cost is fairly modest, but the short validity period means it recurs.

| Item | Details |
| --- | --- |
| Application / renewal fee | RM500 via e-payment |
| Approval validity period | 2 years from the date of issue |
| Renewal window | Submit within 3 months before the expiry date |
| Renewal channel | BLESS system, with a statutory declaration + proof of MIA subscription & practising certificate |
| If lapsed > 1 year | A fresh application + interview is required |

Because approval is valid for only two years, an active auditor will go through periodic renewal cycles throughout their career, while maintaining a valid MIA subscription and practising certificate.

## When does a person become disqualified from auditing?

Meeting the eligibility stages is not enough — a person must also not fall into a disqualification category. Section 264 of the Companies Act 2016 bars a person from acting as auditor of a particular company if, among other things, they:

- **are indebted** to that company (or a related company) in an amount exceeding RM25,000;
- are an **officer** of that company, or their spouse is an officer;
- are a **partner, employer or employee** of an officer of that company;
- are responsible for the **keeping of the register** of members or the register of debenture holders of that company;
- are an **undischarged bankrupt**, whether in or outside Malaysia, without leave of the court; or
- have been **convicted** of an offence involving fraud or dishonesty punishable by imprisonment for three months or more.

Note the difference: the eligibility criteria determine who may be an auditor *in general*, while section 264 determines whether a person is free of conflict to audit a *particular company*. Breaching these prohibitions can lead to a fine not exceeding RM100,000.

## Why does this regime exist?

An audit report is a public statement that a company's financial statements can be relied upon. Investors, lenders, tax authorities, and the public depend on it. That is why the state does not let just anyone sign it.

By restricting the signature to approved auditors — screened through professional membership, accumulated experience, an interview by five regulators, and periodic renewal — the regime seeks to ensure that the name under an audit report carries the weight of expertise and accountability. For example, a private *Sdn Bhd* company that must file audited financial statements cannot simply appoint its in-house bookkeeper; it must appoint a firm whose partner holds a valid audit licence.

## What's next

- If you are an **accountant aspiring to become an auditor**, track your audit hours and assignments early — the threshold of 7,500 hours and 40 assignments takes years to accumulate, and JANM requires a record for the most recent five years.
- If you are a **company owner** appointing an auditor, confirm that the firm and the signing partner hold a valid section 263 approval and that there is no conflict under section 264.
- For the actual wording of the law, refer to the full text of sections 263 and 264 of the Companies Act 2016 on the Companies Commission of Malaysia website, and the latest application guidelines on the Accountant General's Department of Malaysia and MIA websites before applying, as the criteria are revised from time to time.

## Sources

- Approval & Licence Renewal of Auditor / Company Liquidator (FAQ) — https://www.anm.gov.my/en/faqs/approval-licence-renewal-of-auditor-company-liquidator (Jabatan Akauntan Negara Malaysia (JANM))
- Who can be an Auditor and sign the Auditor's Report? — https://ccs-co.com/post/who-can-be-an-auditor-and-sign-the-auditor-s-report/ (CCS & Co (Chartered Accountants))
- Companies Act 2016 (Act 777) — official reprint (ss.263 & 264) — https://www.ssm.com.my/Pages/Legal_Framework/Document/Companies%20Act%202016_Akta%20777_BI%20(1.8.2022).pdf (Suruhanjaya Syarikat Malaysia (SSM))
- Guidelines Pursuant to Subsection 264(4A) of the Companies Act 2016 — https://www.ssm.com.my/Pages/Legal_Framework/Document/01_Guidelines%20Pursuant%20to%20Section%20264(4A)%20of%20the%20CA%202016.pdf (Suruhanjaya Syarikat Malaysia (SSM))

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