Change Auditor in Malaysia: Complete Guide for Companies (2026)

Changing an auditor in Malaysia is legal, common, and increasingly necessary — especially as companies prepare for FYE 2025 / 2026 audits, tighter compliance expectations, and capacity constraints among audit firms.

If your company is considering a change of auditor in Malaysia, this guide explains when you can change, how the process works, and how to avoid SSM issues or audit delays.

Why Companies Change Auditor in Malaysia

Common reasons Malaysian companies change auditors include:

❌ Auditor lacks capacity for upcoming financial year
❌ Audit fees increased unexpectedly
❌ Delayed audit completion year after year
❌ Poor communication or slow response
❌ Group restructuring or new holding structure
❌ Need for industry-specific audit expertise
❌ Auditor resignation or firm restructuring

💡 Changing auditors does not automatically trigger SSM scrutiny if done properly and transparently.

Is It Legal to Change Auditor in Malaysia?

Yes. Under the Companies Act 2016, companies are allowed to change auditors, provided:

Proper resolutions are passed
Auditor resignation or removal procedures are followed
Notification is filed with Suruhanjaya Syarikat Malaysia (SSM) within the prescribed timeline

The change must not be used to avoid audit findings or statutory obligations.

When Can You Change Auditor in Malaysia?

Companies usually change auditors at three key stages:

1️⃣ Before Auditor Appointment (Best Scenario)

Newly incorporated companies
Companies that have not yet appointed an auditor

✅ Fastest and lowest-risk option

2️⃣ After Appointment but Before Audit Commences

Requires formal auditor resignation
Board resolution required
SSM notification mandatory

⚠️ Must be properly documented to avoid delays.

3️⃣ After Audit Has Started (Higher Risk)

Usually due to disputes or auditor incapacity
New auditor must assess opening balances
Higher professional and timeline risk

❗ Not recommended unless unavoidable.

Step-by-Step: How to Change Auditor in Malaysia

✅ Step 1: Board Resolution

Directors approve:

Auditor resignation or removal
Appointment of new auditor
Effective date of change

✅ Step 2: Auditor Resignation or Removal

Outgoing auditor issues a resignation letter stating:

Effective date
Whether there are professional matters to report

For removal, shareholder approval at a general meeting may be required.

✅ Step 3: Appointment of New Auditor

New auditor must:

Provide written consent to act
Confirm independence and eligibility under Companies Act 2016

✅ Step 4: File with SSM

Company lodges the change via MyCoID / SSM portal within the statutory timeline.

⏱️ Late or incorrect filing may result in compounds or compliance queries.

Does Changing Auditor Affect Audit Timeline?

Yes — depending on timing and preparation.

Situation	Impact on Audit
Early change	Minimal
Close to FYE	Moderate
After audit started	High
Poor records	Severe delays

💡 Best practice: Confirm new auditor at least 3–4 months before financial year-end.

Can I Change Auditor for FYE 2026?

Yes. Many Malaysian SMEs change auditors for FYE 2026 due to:

Overbooked audit firms
Transition to new accounting systems
Preparation for group consolidation
Cost optimisation
Compliance readiness for future regulatory changes

⚠️ Audit slots are limited, especially for 31 December year-end companies.

Documents Required by the New Auditor

To ensure a smooth transition, prepare:

Prior year audited financial statements
Management accounts
Trial balance & general ledger
Tax computation
Bank confirmations
Fixed asset schedule
Group structure chart (if applicable)
Previous auditor contact details

Having these ready significantly reduces onboarding time.

Common Mistakes When Changing Auditor in Malaysia

❌ Changing auditor too close to statutory deadlines
❌ Incomplete handover from previous auditor
❌ Failure to assess opening balances
❌ Switching auditors to delay audit completion
❌ Not aligning with AGM or lodgement timelines

These issues may lead to audit delays or SSM clarification requests.

How to Choose the Right Auditor After Changing

When appointing a new auditor, look for:

✔️ Confirmed audit slot availability
✔️ Clear audit timeline and deliverables
✔️ Industry-specific experience
✔️ Transparent audit fee structure
✔️ Strong communication and responsiveness

Audit is not just statutory compliance — it is governance and risk management.

Frequently Asked Questions (FAQ)

❓ Will SSM penalise my company for changing auditors?

No, provided the change is properly documented and filed within the prescribed timeframe.

❓ Can my auditor refuse to resign?

They may delay resignation if professional matters remain unresolved. Proper clearance is important.

❓ Can a company change auditors every year?

Yes, but frequent changes may raise governance concerns with stakeholders.

Need to Change Auditor in Malaysia for 2026?

If your company:

Has FYE 2025 / 2026
Faces audit capacity, timing, or cost issues
Wants a smooth, compliant auditor transition

👉 Early planning is critical. Audit firms have limited capacity each year.