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Mandatory audit of small business in Malaysia: owners' perspectives


Ismail, Hashanah and Loh, Lee Boon (2012) Mandatory audit of small business in Malaysia: owners' perspectives. In: 3rd International Conference on Business and Economic Research (3rd ICBER 2012), 12-13 Mar. 2012, Golden Flower Hotel, Bandung, Indonesia. (pp. 1370-1384).


This paper reports on a survey of small businesses in Selangor and Kuala Lumpur on the perceived benefit of the statutory audit. The study finds that nearly half (44%) of the sample companies would not continue to have their accounts audited if not legally required to do so. However, the sample companies generally agreed that audit can provide a check on internal control or accounting records. The location, age, ownership structure, education level and relationship with accounting cost were the factors found to significantly affect the owners’ perception of the need for annual audit by small companies. This is the first study that uses location, education level and relationship with accounting cost as the variable to test the perceptions of business owners towards a mandatory annual audit of financial statements.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Economics and Management
Publisher: Conference Master Resources
Keywords: Statutory audit; Malaysian small business; Business location; Audit exemptions
Depositing User: Samsida Samsudin
Date Deposited: 24 Jun 2013 03:30
Last Modified: 04 Dec 2019 06:36
URI: http://psasir.upm.edu.my/id/eprint/21262
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