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Audit Requirements in Singapore

Audit Requirements in Singapore
Auditing is an extremely complex procedure, representing the systematic examination and certification of a company’s books of account, transaction records, and other important documents, and physical examination of inventory by certified accountants in Singapore, called auditors.

 

The legislation that regulates audits in Singapore is represented by the Audit Act. Nevertheless, depending on the domain in which the audit is implemented, there are also other legal audit requirements in Singapore that regulate how, when and by whom the audit is performed

 

General requirements for an audit in Singapore

According to the Singapore Commercial Law, the audit requirements in Singapore are the following:

 

•    all businesses have to appoint an auditor in maximum three months from the date the business was opened;
•    the Profit and Loss Account and balance sheet of the business have to be audited yearly;
•    Limited Liability Companies in Singapore also must submit an Estimate Chargeable Income together with the other documentation that is forwarded to the Inland Revenue Authority in Singapore (IRAS). Our accountants in Singapore can give you more details on this matter.

 

 

Exceptions from statutory audit in Singapore

Statutory audit is an examination required on a yearly basis by the law that analyses the correctness and fairness of the financial report of a business. In Singapore, the IRAS is the governmental body which regulates the statutory audit. In principle, all companies have to submit a statutory audit, with certain exceptions. A company could be excepted from submitting the statutory audit if:

 

•    it is an Exempt Private Company (EPC). An EPC is a private company that does not have a corporate shareholder – direct or indirect – and the number of shareholders is maximum 20;
•    the yearly revenue of the EPC is maximum S$ 5 million for the financial year that begins until and after 1 June 2004;
•    the shareholders representing at least 5% of the company’s ordinary shares do not demand an audit;
•    banks or other financial institutions/creditors do not demand an audit.

We are a team of qualified accountants in Singapore with extended experience in working with commercial companies. We are certain that our accounting and audit matters knowledge and understanding of a company’s dynamics are our key ingredients for our success. Our mission is to build long term relationships and develop together with our clients.

If you would like to know more about the audit requirements in Singapore, contact us now! Our team of accountants can help businessmen in a wide range of accounting matters, such as payroll in Singapore or bookkeeping.