Change of Auditor in Malaysia: Key Requirements and Procedures (2026 Guide)
Changing an auditor in Malaysia is a regulated process governed by the Companies Commission of Malaysia (SSM) under the Companies Act 2016.
Whether due to cost, service quality, or strategic reasons, companies must ensure full compliance to avoid penalties or delays in statutory filings.
1. When Can a Company Change Its Auditor in Malaysia?
To begin with, Malaysian companies can change auditors in the following situations:
- At the conclusion of the Annual General Meeting (AGM)
- Voluntary resignation by the auditor
- Removal by shareholders before the end of the term
In practice, most changes occur at the AGM, where shareholders appoint a new auditor for the next financial year.
2. Auditor Resignation (Section 281 – Companies Act 2016)
Under the Companies Act 2016:
- An auditor may resign by giving written notice to the company
- The resignation is only effective upon appointment of a new auditor
- The auditor must deposit a statement of circumstances (if any)
Therefore, companies must act promptly to appoint a replacement auditor.
3. Removal of Auditor (Section 276)
If a company intends to remove an auditor:
- A special notice (28 days) must be given
- The auditor has the right to make written representations
- Shareholders must pass an ordinary resolution
This ensures fairness and transparency in the removal process.
4. Appointment of New Auditor
Following resignation or removal:
- The company must appoint a new auditor at a general meeting
- The appointment must be lodged with SSM
- The new auditor must provide written consent to act
Failure to appoint an auditor may result in non-compliance with statutory requirements.
5. Common Reasons for Changing Auditors
Malaysian companies typically change auditors due to:
- Fee considerations – seeking more competitive pricing
- Service quality issues – delays or lack of responsiveness
- Business expansion – need for auditors with stronger expertise
- Group restructuring – alignment across entities
6. Key Compliance Risks to Avoid
Companies should be careful to avoid:
- ❌ Delays in appointing a new auditor
- ❌ Failure to provide proper notice for removal
- ❌ Lack of communication with outgoing auditor
- ❌ Incomplete SSM filings
Such issues may lead to penalties or audit delays.
7. Practical Steps for a Smooth Transition
To ensure a seamless auditor change:
- Evaluate and document reasons for change
- Obtain professional clearance from outgoing auditor
- Secure consent from incoming auditor
- Prepare resolutions and notices
- Lodge required documents with SSM
8. How We Can Help
At uSafe, we support companies in both Singapore and Malaysia to manage auditor transitions efficiently.
Our services include:
- Advisory on auditor change procedures (SSM & ACRA compliance)
- Coordination with outgoing and incoming auditors
- Ensuring proper documentation and filings
- Providing audit services aligned with business needs
Conclusion
In summary, changing an auditor in Malaysia requires careful compliance with the Companies Act 2016 and guidelines from Companies Commission of Malaysia.
With proper planning and execution, companies can ensure a smooth transition while maintaining compliance and strengthening governance.
Sources: https://www.ssm.com.my
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