Criteria the Minister of Finance will consider before approving someone as an approved company auditor are:

Main criteria under Section 263 Companies Act 2016:

1. The applicant must be of good character. SSM

2. The applicant must be competent to perform the duties of an auditor under the Act. SSM

10 more related approval / eligibility factors you can write:

3. Must be a chartered accountant (qualified accountant).
   Only a “person,” and “person” here means a chartered accountant as defined under the Accountants Act 1967, can even be considered for approval. SSM

4. Must apply formally to the Minister of Finance for approval to be an approved company auditor.
   You don’t automatically become an approved auditor just by being an accountant — you must apply to the Minister charged with finance to be approved specifically as a company auditor. SSM

5. Must pay the prescribed approval fee.
   Approval is only given “upon payment of the prescribed fee,” so financial and licensing compliance is part of the approval test. SSM

6. The Minister can impose conditions or limitations on the approval.
   Even if approved, the Minister can approve you subject to specific limitations or conditions, which means suitability is not just pass/fail — it can be restricted. SSM

7. Approval is time-limited (2 years).
   Every approval (and renewal) is only valid for two years unless revoked earlier. This means the auditor must maintain quality and integrity to be renewed again. SSM

8. Approval can be revoked at any time.
   The Minister may revoke the approval at any time by serving a notice of revocation. So the applicant must be someone the Minister believes will remain fit and proper over time, not just on day one. SSM

9. Oversight by professional bodies.
   The Minister may delegate the approval power to “any person or body of persons charged with the responsibility for the registration or control of accountants in Malaysia.”
   Practically, this means your standing with the professional accounting body (e.g. ethics, discipline record) matters. SSM

10. Must be free from disqualifying conflicts under Section 264.
    A person cannot act as an auditor if, for example, they owe the company (or its related company) more than RM25,000, or if they or their spouse is an officer of the company. This independence requirement is part of being a suitable approved auditor. SSM

11. Must not be bankrupt.
    An undischarged bankrupt (inside or outside Malaysia) cannot act as auditor unless the Court gives leave. This affects ongoing fitness to stay approved. SSM

12. Must not have recent dishonesty/fraud conviction.
    A person convicted of an offence involving fraud or dishonesty punishable with ≥3 months’ imprisonment is disqualified from acting as an auditor. This shows the Minister expects integrity and clean legal record. SSM