Audit Services in Singapore
Due to Singapore being one of the biggest business hubs in the world, there is an ever-growing demand for auditing services in Singapore. Company audits are essential in ensuring that financial statements of the company are true and fair. In Singapore, the Inland Revenue Authority Singapore (IRAS) is the authority governing the laws and regulations of companies. The scope and nature of the auditing program of Singapore are subject to the statutory requirements of IRAS. The process of audit involves examination of all financial data and book of accounts of an organization to ensure their credibility and prevent any misstatement or discrepancies. All the Singapore incorporated companies must conduct an audit for the preparation of accurate and effective financial reports unless the company is exempted to do so.
A company in Singapore can file its audit once the financial statements are ready and if they meet any 2 of the following 3 conditions:
- Total annual revenue exceeding S$10 million
- Total assets exceeding S$10 million
- Has more than 50 employees
If the company is part of a group, the company will be assessed on a group consolidated basis.
Purpose of an Audit
These are the purposes of conducting an audit in a company:
- Ensuring your business tax returns are in compliance with the tax law
- Educating your business on your tax obligations and how to comply
- Identifying tax laws, policies, and processes where one can simplify or clarify
Types of Audit in Singapore
There are three main types of audit in Singapore:
It is a type of external audit conducted annually to meet a specific regulation set by the legislation. It is legally required by the laws of regulatory bodies.
This type of audit is done if you are having a rental agreement with your landlord asking for revenue figures certified by a public accountant.
This type of audit is needed if an organization that is more into charities and IPCs to ensure their compliance with the IMCs recommendation for the IPCs mandated rules and regulations.
Appointment of Auditors
In Singapore, public accountants or the accounting firms who are approved by the Accounting and Corporate Regulatory Authorities (ACRA) can act as a company auditor. A company within the 3 months of its incorporation is required to appoint at least one accounting entity or an accounts practitioner to be the company’s auditor. The auditor will hold the office from the time of their appointment until the conclusion of the company’s next Annual General Meeting (AGM). During the first AGM, the company will appoint a new accounting entity (or reappoint the same entity) to act as the company auditor until the conclusion of the next AGM. This auditor will then hold office until the conclusion of the company’s subsequent AGM, and so on and so forth. If the directors in some case fail to appoint an auditor, any company member may apply to the Registrar to have it appoint an auditor for the company instead.
Role of an Auditor
The primary role of an auditor in Singapore is to report on whether the company’s financial statement. He/she sees to:
- Compliance with the financial reporting standards
- Provision of a true and fair view of the company’s financial position and performance
The auditor’s report must be attached to or endorsed upon those financial statements when these statements are laid before the company at its AGM. The auditors are entitled to access the company’s accounting records, or obtain any information and explanations from the company’s officers as required for audit purposes.
An entrepreneur setting up a company in Singapore must be aware of the annual filing requirements and the exemptions that are applicable to certain companies such as SMEs, exempted private companies, dormant companies, etc. To ensure that your company complies with these conditions and can avail all the audit exemptions, it is advisable to take help of an advisor or a consultant who is well aware of the auditing legalities in Singapore.
We at Business Setup Worldwide provide the following audit services:
- Statutory audits
- Due diligence for mergers and acquisitions
- Special reviews
- Other non-statutory audits
If you want to get auditing services for your company in Singapore, do contact us today – we’d be happy to help.