Audit Fee Schedule & Table
RECOMMENDED PRACTICE GUIDE 7 (REVISED):
A GUIDE TO CHARGING FOR PROFESSIONAL ASSURANCE SERVICES
Malaysian Institute of Accountants (MIA) has recommended Practice Guide on Audit Fee Charge (New Audit Fee) by Audit Firms for providing auditing services in Malaysia with effect from 1 March 2010.
This recommendation shall be constituted as the new guildline for all audit firms in Malaysia charging to their clients on the slightly increased fees over the audit assignments conducted.
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) |
| 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 |
| 10,000,000 to 20,000,000 |
|
1,000 for every RM1,000,000 increase of a fraction thereof up to RM20,000,000 |
|
|
| Above 20,000,000 |
Negotiable (but should not be less than RM20,000 per assignment) |
(ii) Total Operating Expenditure Basis
|
Gross Assets or Turnover for every ringgit of |
Cumulative Ringgit (RM) |
Rate (%) |
Fees (RM) |
Cumulative Fees (RM) |
| 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 |
0.125% |
|
|
For full details of the guildline, please read “MIA New Audit Fee Guildline”
The practice of professional services, notably financial auditing, has experienced tremendous changes in recent time. The professional standard demanded on the practitioners has become more stringent. Continuous up-grading of skills and adherence to professional pronouncement has become the order of the day.
A reasonable level of remuneration will encourage the practitioners to maintain and up-grade the quality of services rendered.
This recommended practice guide sets out the basis for establishing a reasonable level of remuneration, commensurate with the provision of professional assurance services of an acceptable and recognized standard.
In developing this practice guide, the Malaysian Institute of Accountants (MIA) had conducted the following due process:
- Determining the issues at hand;
- Research into current practice within and outside of Malaysia;
- Consultation with various stakeholders; and
- Consultation with relevant regulatory authorities, where appropriate.
This document is recommended by the Public Practice Committee of MIA for issuance as the Institute’s Recommended Practice Guide 7 (RPG 7).
This amended Guide replaces a similar one issued in 2007. This guide represents the best current practice endorsed by the Institute and comes into effect on 1 March 2010. This should apply to all work that commences on and after the effective date of this RPG.
