Audit necessitates the need to prepare proper accounts. This could
save you money as the new Companies Act 2016 has imposed increased
liabilities to company directors for failing to prepare adequate financial
statements.
On conviction, the new Act imposes a fine not exceeding five
hundred thousand ringgit or imprisonment for a term not exceeding three
years or both. Audit is a major deterrent against fraud, money laundering and other
illegal activities.
Although the audit process is not designed to detect fraud, there is no doubt
that in the absence of an audit, fraud and errors are more likely to occur and go
undetected without any independent examination.
"SMEs are generally without in-house financial and managerial
expertise.
The accountants’ role in providing the necessary financial and
management advice fills this gap.
An independent audit also builds public confidence towards the integrity
of financial statements and in nurturing the right corporate behaviour
of SMEs. "
Datuk Dr Hafsah Hashim
Chief Executive Officer
SME Corp Malaysia
SOURCES : MIA
