A Guide to Auditors in Singapore
Auditors in Singapore – An Overview of Singapore’s Financial Reporting
Public accountants acting as auditors in Singapore must be registered with the Accounting and Corporate Regulatory Authority (ACRA).
Company Statutory Audit
A company statutory audit is an external audit which is carried out annually. These audits must meet specific regulations which have been set by the legislation. In an audit process, the company’s financial records and accounting books are examined by auditors.
Who Are the Approved Auditors in Singapore?
They must be registered public accountants. Only then can they be appointed to audit a company’s financial statements. To register as a public accountant with ACRA, you must provide the following documents:
- Prescribed experience as an auditor
- Prescribed qualification
- Prescribe continuing professional education
- Institute of Singapore Chartered Accountants (ISCA) membership
What Do Auditors in Singapore Do?
These auditors are responsible for a business’s audit opinion. They must ensure that audits are carried out per the Singapore Standards on Auditing (SSA) guidelines and requirements.
ACRA will inspect all audits performed by auditors in Singapore. This is to ensure compliance with the SSA requirements. The SSA is the equivalent of the internationally recognised International Auditing Standards.
What Are Audited Financial Statements?
To comply with Singaporean law, companies must file their annual statements. Auditors will be responsible for overseeing that these documents are filed per IRAS and ACRA’s requirements. The audited financial statements include:
- Statement of the business’s financial transactions
- Statement of the business organisation
Audited financial statements are mainly to ensure that the company’s financial records are in order. Auditors in Singapore would conduct a thorough audit and then submit that for review. During that review, errors in financial records will be brought to attention. These statements are also helpful when shareholders need to present their financial standings to banks for greater credibility.
Audit Exemptions in Singapore
In July 2015, ACRA introduced the Small Company Concept following the new Companies Act reform. This concept introduced audit exemptions for small companies. A company in Singapore that qualifies as a “small company” can reduce their regulatory costs because they would have to comply with fewer audit requirements.
To qualify as a small company in Singapore, a business must comply with any two requirements below:
- No more than $10 million in total revenue
- No more than $10 million in total assets
- No more than 50 employees
These requirements must be fulfilled for 2 consecutive financial years. Only then would a business qualify as a small company and be eligible for audit exemptions.