Perceived benefit of the 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: Article
Language:English
Published: Taiwan Institute of Business Administration 2013
Online Access:http://psasir.upm.edu.my/id/eprint/30829/
http://psasir.upm.edu.my/id/eprint/30829/1/Perceived%20benefit%20of%20the%20mandatory%20audit%20of%20small%20business%20in%20Malaysia.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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spelling upm-308292015-09-22T02:31:22Z http://psasir.upm.edu.my/id/eprint/30829/ Perceived benefit of the 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. Taiwan Institute of Business Administration 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30829/1/Perceived%20benefit%20of%20the%20mandatory%20audit%20of%20small%20business%20in%20Malaysia.pdf Ismail, Hashanah and Loh, Lee Boon (2013) Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives. Academy of Taiwan Business Management Review, 9 (1). pp. 146-149. ISSN 1813-0534
spellingShingle Ismail, Hashanah
Loh, Lee Boon
Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives
title Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives
title_full Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives
title_fullStr Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives
title_full_unstemmed Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives
title_short Perceived benefit of the mandatory audit of small business in Malaysia: owners' perspectives
title_sort perceived benefit of the mandatory audit of small business in malaysia: owners' perspectives
url http://psasir.upm.edu.my/id/eprint/30829/
http://psasir.upm.edu.my/id/eprint/30829/1/Perceived%20benefit%20of%20the%20mandatory%20audit%20of%20small%20business%20in%20Malaysia.pdf