Mandatory audit of small business in Malaysia: owners' perspectives

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 comp...

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Main Authors: Ismail, Hashanah, Loh, Lee Boon
Format: Conference or Workshop Item
Language:English
Published: Conference Master Resources 2012
Online Access:http://psasir.upm.edu.my/id/eprint/21262/
http://psasir.upm.edu.my/id/eprint/21262/1/093_295_3rdICBER2012_Proceeding_PG1370_1384.pdf
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author Ismail, Hashanah
Loh, Lee Boon
author_facet Ismail, Hashanah
Loh, Lee Boon
author_sort Ismail, Hashanah
building UPM Institutional Repository
collection Online Access
description 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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format Conference or Workshop Item
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institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T08:26:43Z
publishDate 2012
publisher Conference Master Resources
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spelling upm-212622019-12-04T06:36:11Z http://psasir.upm.edu.my/id/eprint/21262/ Mandatory audit of small business in Malaysia: owners' perspectives Ismail, Hashanah Loh, Lee Boon 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. Conference Master Resources 2012 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/21262/1/093_295_3rdICBER2012_Proceeding_PG1370_1384.pdf 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).
spellingShingle Ismail, Hashanah
Loh, Lee Boon
Mandatory audit of small business in Malaysia: owners' perspectives
title Mandatory audit of small business in Malaysia: owners' perspectives
title_full Mandatory audit of small business in Malaysia: owners' perspectives
title_fullStr Mandatory audit of small business in Malaysia: owners' perspectives
title_full_unstemmed Mandatory audit of small business in Malaysia: owners' perspectives
title_short Mandatory audit of small business in Malaysia: owners' perspectives
title_sort mandatory audit of small business in malaysia: owners' perspectives
url http://psasir.upm.edu.my/id/eprint/21262/
http://psasir.upm.edu.my/id/eprint/21262/1/093_295_3rdICBER2012_Proceeding_PG1370_1384.pdf