Small and Medium Enterprise (SME) companies in Malaysia have been given an opportunity for not having their financial statements to be audited under audit exemption regulations. However, there are companies voluntarily demanding for financial audit. Thus, this study examined the factors influencing voluntary audit among SME companies in Malaysia. Three factors were chosen namely, firm size, related stakeholder, and internal control towards voluntary audit. Using a survey questionnaire as the research instrument on 122 of SMEs, the results show that there is a significant positive relationship of related stakeholders and internal control in influencing voluntary audit among SME companies in Malaysia. Firm size however shows an adverse result by the significant negative relationship towards voluntary audit. The findings also prove that all the three factors have significant influence on SMEs in demanding for voluntary audit with related stakeholder appears as the strongest predictors in this study. This study achieved all of the three objectives. It provides further understanding from the SMEs viewpoint and the agreeableness to demand for voluntary audit despite the exemption provided by the regulators. Furthermore, the study also provides significant implications to the practical view for SME companies and accounting firms, and to academic view as the study may contribute to the researchers and educators on the view of voluntary audit after the regulation has taken place.

Paying taxes is not a favorable choice; even it is a compulsory financial obligation to each taxpayer towards its government. However, the evasion of tax is immoral since it is illegal and unethical. This paper examines university students’ perception in Malaysia on the ethics of tax evasion. A survey method consisting of 18 statements was distributed to 120 students from Diploma to Postgraduate students in three higher learning institutions. This study used descriptive analysis to examine the overall mean responses and followed by additional analysis to compare the mean responses according to the respondent’s age and level of educations. The results of this study indicated that respondents agreed that tax evasion was unethical. However, tax evasion becomes ethical under some circumstances when the tax system is unfair and the government or political party is involved in corruption. In terms of age, the youngest group (18 – 25 years old) tends to believe that tax evasion was ethical compared to medium age and older age groups. Besides, the diploma students felt that tax evasion was ethical when they had the highest score than students with degree and masters level. The findings show an early indicator of future taxpayers who believe that tax evasion is ethical depending on the government’s governance, taxpayer’s experience, and the level of tax knowledge. Therefore, this study recommends universities to educate their students on tax evasion areas through the formal syllabus or informal programs in ensuring their students to become good taxpayers.