Audits refer to the official inspection of a company’s accounts and books and just like with every country or state, there are certain principles and regulations for the audit process in Singapore. The body responsible for the regulation of audits in Singapore is the Accounting and Corporate Regulatory Authority (ACRA).
What Is A Statutory Audit In Singapore And Why Is It Required?
A statutory audit is a yearly audit conducted by an external body that is aimed at meeting specific organizational goals. It is carried out in order to meet the requirements set by the audit regulating body: ACRA.
Who Needs To be Audited In Singapore?
According to the Singapore Companies Act, all companies in Singapore are required to get a yearly audit with the exemption of small companies as amended in 2015. A company can be considered a small company if it meets at least 2 of the following criteria:
The total revenue of the company does not exceed $10 million yearly
The company’s total assets at the end of the year do not exceed $10 million
The company does not have more than 50 full-time employees at the end of each financial year.
Audit Requirements For A Private Company In Singapore
There are three main audit requirements for a private company in Singapore and they include:
Appointment of auditors
Every private company must appoint an auditor within three months of its incorporation unless exempted. The appointed auditor must be a public accountant or a registered accounting firm under the Accounting and Corporate Regulatory. The appointed auditor will maintain the position until the first annual general meeting after which they can be replaced or retained.
Auditor’s role
The audit process in Singapore includes the submission of the company’s audited statement which contains the cash flow statement, balance sheet, and income statement. The auditor must perform important roles in this process which include:
Give an opinion on whether the audited financial report is accurate and report any discrepancies in the financial report
Check to make sure that the financial report is in compliance with the legislative standards
Auditor’s Remuneration
According to Singapore’s Company Act, the auditor must be paid for the services rendered. There is no stipulation on how much should be paid but the agreed price must be made known during the general meeting at the request of the company shareholders.
Shareholders’ Annual Meeting and Company Audits
A shareholders’ annual meeting is a mandatory meeting where the company accounts are presented and the shareholders can access the growth and health of the company.
Audit Exemptions In Singapore
Although every company is required to get an audit yearly, certain factors exempt a company from annual audits in Singapore such as:
Small companies provided they meet the criteria stated above
Dormant companies that have not been active since their inception or have been inactive since the end of the previous financial year.
Need Professional Audit Service Help?
We would recommend SJH Advisory because they offer professional company audits as well as advisory and consultation services. You can contact them for a stress-free audit process in line with the ACRA guidelines.
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