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Answer: A. Dormant companies A dormant company is a private entity as defined by the Malaysian Accounting Standards Board (MASB) and the company is qualified for audit exemption if-- (a) it has been dormant from the time of its incorporation; or (b) it is dormant throughout the current financial year and in the immediate preceding financial year. ● a company is dormant in a financial year if the company does not carry on business and there is no accounting transaction occurred; ● “Accounting transaction” means a transaction, accounting or other records of which is required to be kept under section 245(1) of the Companies Act 2016, excluding a transaction arising from any obligations that the company is required to abide by any laws to pay and its related costs to comply. B. Zero-Revenue companies A zero-revenue company is a private entity as defined by the Malaysian Accounting Standards Board (MASB) and the company is qualified for audit exemption if— (a) it does not have any revenue during the current financial year; (b) it does not have any revenue in the immediate past two financial years; and (c) its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 as well as in the FS of the immediate past two financial years. ● “revenue” does not include credit entries for reversal of accounting entries arising from earlier entries, accounting entries related to taxation, reversal of provisions made earlier and gain on derecognition of property, plant, equipment and investment property in the Statement of Comprehensive Income; ● a company ceases to be inactive where there are revenue received or receivable; and ● any expenses incurred in maintaining the company is disregarded. (C) Threshold-Qualified companies A threshold-qualified company is a private entity as defined by the Malaysian Accounting Standards Board (MASB) and is qualified for an audit exemption if - (a) it has revenue not exceeding RM100,000 during the current financial year and in the immediate past two (2) financial years; (b) its total assets in the current Statement of Financial Position (FS) does not exceed RM300,000 and in the immediate past two (2) financial years; and (c) it has, at the end of its current financial year and in each of its immediate past two (2) financial years end, not more than five (5) employees. ● revenue includes revenue receivable during the year.