By :

Muhammad Sidiq Muhammad Ibrahim Amirah Adilah Shari

As stated in the Companies Act 1965, regardless of the size,private or public, all companies in Malaysia need to have their annual accounts audited by an independent auditor. The purpose of audit is to inform shareholders about how the directors have managed the companys finances on their behalf. Audit also helps the shareholders to make informed decisions based on how the company is performing.

3 hypothesis extract from the article

Hypothesis 1: there is a significant relationship between audit value and the level of acceptance of audit exemption among SMEs Hypothesis 2: there is a significant relationship between audit burden and the level of acceptance of audit exemption Hypothesis 3: there is a significant relationship between audit fees and the level of acceptance of audit exemption

 Helps

public know about the SMEs performance. Provides reasonable assurance based on accounting standards. Easy to receives loans from third parties. Help in expanding the SMEs Help the public realise the absence of SMEs in the business market.

 increase

in qualified accountants burden increase in the workload of directors and staff involved in the annual audit not relevent due exp: no segregation of job too much errors; lack of expertise by the management

 cannot

afford qualified auditors to audit SMEs most of the SME's has low turnover, which are selffinancing no need for external capital contributor as they closely manage by shareholder

 According

to the hypothesis extract from the study, Hypothesis 1,2 and also Hypothesis 3 is supported. Factors such as audit value, audit burden and audit fees have been shown to exert a significant influence in acceptence level of audit exemption among SMEs in Malaysia. Its depend on how is the SMEs viewed about the value of audit and audit exemption, SMEs need to weight the advantages and disadvantages of being audited or being exempted from audit before making decisions