Malaysia Audit Fees Schedule and Table

Recommended Practice Guide (RPG) 7 for Audit Fee Charges

The Malaysia Institute of Accountants (MIA) introduced the Recommended Practice Guide (RPG) 7, effective from 1 March 2010, to guide audit firms in charging fees for statutory auditing services. This was prompted by:

• Increased compliance burdens due to stricter auditing standards.

• Rising operational costs.

• The need to maintain auditor professionalism amidst competitive pricing pressures.

Although the RPG 7 was removed from the MIA website to comply with the Competition Act (CA) 2010, it continues to serve as a guideline for our associated auditors when establishing audit fees for statutory audit services in Malaysia.

This recommended practice guide sets out the basis of establishing a reasonable level of remuneration, commensurate with the provision of professional assurance services of an acceptable and recognized standard.  A reasonable level of remuneration will encourage the practitioners to maintain and upgrade the quality of services rendered.

In developing this practice guide, MIA had conducted the following due process:

• Determining the issues at hand

• Research into current practice within and outside Malaysia

• Consultation with various stakeholders

• Consultation with relevant regulatory authorities, where appropriate