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How to Become a Financial Auditor in Singapore

How to Become a Financial Auditor in Singapore

An auditor plays a key role in the accounting domain. He or she is the one who performs a job that is quite similar to that of an accountant. Basically, an auditor personally reviews and does a follow up of the financial credibility of a certain legal entity.

The methods utilized to perform this job are rather straightforward and basic, although it can take a lot of time. In this article, our accountants in Singapore outline briefly how to become a financial auditor in Singapore.

What are the regulations applicable to auditors in Singapore?

The Accounting and Corporate Regulatory Authority (ACRA) in Singapore is the body that publishes data on the audit quality in the city-state and which registers public accountants.

The reason why a person should register as a public accountant is to be able to act as an auditor of the financial statements in Singapore. A public accountant is liable for the audit opinion, which means that he or she makes sure that the audit is conducted in compliance with the Singapore Standards on Auditing (SSA) and other regulations.

In order to register as a public accountant, ACRA requires a person to:

•    Have a prescribed qualification;
•    Have the appropriate audit experience;
•    Have the appropriate ongoing professional education;
•    Be a member of the Institute of Singapore Chartered Accountants (ISCA). An accountant in Singapore can offer more details on this matter.

According to ACRA, the Audit Quality Indicators are the following:
  • Audit hours: the number of hours incurred by the specialists in the Singapore audit team;
  • Experience: the years of audit experience as well as industry specialization, if applicable;
  • Training: the average number of hours spent on training and in the industry-specific training;
  • Inspection: the results of the external and the internal inspections (and the action to act upon the findings);
  • Independence: compliance with the Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities.
Apart from these five indicators, ACRA also includes the number of individuals who occupy quality control functions in an accounting firm in Singapore that also offers audit services. The staff per partner or manager ratio, as well as the degree of personnel losses over the years, are also issues that are taken into consideration.
When deciding to work with an audit firm, these indicators may be valuable in determining the quality of their services.
Public accountants are required to base their opinions and findings on appropriate work as well as satisfactory/sufficient evidence. They are also expected to adhere to the Code of Professional Conduct and Ethics and continue their professional education. They can enroll in ACRA’s Practice Monitoring Programme (PMP). Under this program, ACRA inspects the auditor’s performed audits in order to check if they comply with the Singapore Standards on Auditing.
One of our accountants in Singapore can provide interested individuals with more information about these compliance requirements.

What career prospects do financial auditors have in Singapore?

There are plenty of opportunities for financial auditors in Singapore who may find profitable openings within viable organizations from recognized institutions in a thriving economy such as Singapore. Because the careers can be different, one can take advantage of many opportunities connected to their field of choice or interest.

A financial auditor may as well work for a business and actually audit the books for the company. Internal auditors can also work for a private company and can even be employed to effectuate independent reviews of the books and records of the business.

What are the general audit requirements for companies in Singapore?

Auditors in Singapore can look forward to a career in a company that has been incorporated in Singapore. As per the local regulations, at least one accounting entity is to be appointed as the company auditor, a condition that is not applicable to small private companies (those that satisfy certain conditions regarding total revenue, total assets and a maximum number of employees). When working with these companies, an accountant in Singapore who overtakes the role as an auditor will report the company’s financial statements to reflect the company’s true financial position as well as provide information on its performance.
As Singapore is a recognized financial center, auditors can find several opportunities when working with Singaporean companies. below, we present a number of statistics about the main industrial sectors in 2017:
  • the finance and insurance sector: total equity of 1,872.4 billion SGD;
  • the wholesale and retail trade sector: equity of 327.1 billion SGD;
  • manufacturing: 212.4 billion SGD;
  • real estate: 199.7 billion SGD.

If you need further information about how to become a financial auditor in Singapore or any other accounting services, please feel free to get in touch with our accounting firm in Singapore.