3 Key Facts about Statutory Audit firm in Singapore
Statutory audit is a requirement by the Accounting and Corporate Regulatory Authority (ACRA) that companies incorporated in Singapore should adhere to. It is a type of external audit that should be conducted annually by companies that meet certain set criteria and it’s aimed at meeting specific set regulations as per the legislation. ACRA is the authority that governs the laws and regulations of companies. Every company registered in Singapore is required to appoint an auditor within its three months of incorporation of company unless the company is exempted from audit.
Audit exemptions only apply to companies that are categorized as “small company or small group”. A company is considered to qualify as a small company if;
- It’s a private company within the financial year in question
- If it meets at least 2 or 3 of the below criteria for immediate past two financial years.
- If the total revenue is less than $10million
- If total assets is less than $10million
- If the number of employees are below 50
For a company to be considered as part of a group and qualify for audit exemption it should meet the following criteria;
- The company must qualify as a small company
- The entire group must be a small group
Here are some of the facts about statutory audit in Singapore;
Understand status of company
In order to observe compliance with regard to auditing of financial records; it’s advisable that one gets to understand the status of the company. You should be well versed with how your company is categorized and whether it’s classified as a small company or not. Working with a reputable audit firm in Singapore such as Onestop CA Singapore can be of great help as you get to engage a team of accounting and audit professionals with in depth knowledge of statutory requirements and compliance issues.
Penalties for Non-compliance
Another key fact to be aware of with regards to statutory audit is the penalties that a company is likely to incur in case of non-compliance and such can be avoided if you work with a reputable audit firm in Singapore. Failure to appoint an auditor in Singapore within the stipulated time can attract penalty. Presentation of inaccurate information to ACRA in Singapore is also a punishable offense and may incur penalties. Engaging a reputable audit firm in Singapore can greatly help in ensuring that compliance is observed and penalty is avoided. There are requirements that a company should furnish the registrar with according to Section 173A (1) of the Companies Act and working with CA professionals that understand the scope of what is required is important.
When engaging an external auditor in Singapore, it’s advisable that you work with an audit firm that clearly understands what your industry entails and can identify key risk areas. Their auditing methodology should be that which entails assessing and evaluating the effectiveness of the client’s internal control and the key risk areas. Onestop CA Singapore has a very clear and innovative methodology that ensures satisfactory audit of financial records is undertaken.
Originally published by onestop-audit.com