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Local Statutory Audit2021-05-06T20:21:05+08:00

The scope of our audit and assurance services is wide; it covers statutory and non-statutory (including MCST and Singapore branch) audits of the financial statements. As part of our commitment to be our clients’ trusted business advisors, our audit and assurance services are designed to help clients meet both statutory obligations and their business needs and requirements. Therefore, our audit methodology focuses on understanding our clients’ business and identifying key risks areas.

LOCAL STATUTORY AUDIT

In Singapore, qualifying companies are required to undergo a local statutory audit. This external audit—performed by accounting firms like Paul Wan & Co—is typically conducted yearly to verify if a company complies with the policies stipulated by the legislation. The Accounting and Corporate Regulatory Authority (ACRA) is the local governing body that imposes the rules and regulations of companies in Singapore.

When a local statutory audit is conducted, it gives users the assurance that the company’s account covers all the bases when it comes to accounting regulations.

Why Choose Us

Our clients coming from different industries belong to local companies and multinational corporations. This experience equips us with both business and technical knowledge. Here are the other reasons why you should choose us:

  • Our systems are up-to-date with the latest Singapore auditing standards.

  • When we review your financial statements, we follow strict guidelines so that you don’t have to worry about non-compliance.

  • Your business operations are important to us. They are included in our considerations when we analyse your statements.

  • We help oversee your organisational ethics to improve your operations and financial activities

  • We evaluate the quality of your business activities and constantly guide your company regarding strategic planning and development

Important Information on Singapore Statutory Audit

All Singapore companies need to appoint an auditor within three months of incorporation unless they are deemed exempt. If an entity is under the Small Company or Small Group classification, they are considered exempt.

What is considered a small company?

According to the Companies Act, an entity is considered a small company when it has the following qualities:

  • It is a private company.

  • It fits at least two out of three criteria for the immediate past two subsequent financial years:

    • Equal to or less than $10 million total annual revenue
    • Equal to or less than $10 million total assets
    • Equal to or less than 50 employees

For Companies Within a Group

The Companies Act considers a company as part of a group when:

  • The entity qualifies as a small company

  • The whole group under a company is a small group

Meeting these criteria means a company is exempted from a statutory audit.

A group is considered a small group if it fits at least two of the three criteria specified above on a consolidated basis for the immediate past two subsequent financial years:

A small group together with all the other groups under a company is considered a small company until such time it becomes disqualified. The following qualities disqualify a small company:

  • If it halts being a private company at the financial year in question

  • It stops meeting at least two of the three criteria discussed above for the immediate past two subsequent financial years

In a situation where a group still has a qualifying small group: If it fits at least two of the three criteria specified above on a consolidated basis for the immediate past two subsequent financial years, it is still considered a small group.

Important things to note:

  • A group includes a parent and its subsidiaries as defined under SFRS 110 Consolidated Financial Statements.

  • According to the Companies Act, Schedule 13, Paragraph 12(b):

    where consolidated financial statements are not prepared by a parent in relation to a group —

    (A) “consolidated total assets” means the aggregate total assets of all the members of the group; and

    (B) “consolidated revenue” means the aggregate revenue of all the members of the group

Non-Compliance Consequences

Section 173A(1) of the Companies Act stipulates that within 14 days a person is appointed as a director, chief executive officer, secretary or auditor; and within 14 days after the changes in the appointment of the key persons previously stated, the company needs to lodge a notice with the ACRA Registrar.

Failure to comply is an offence under section 173H(1) of the Act and will result in a fine not exceeding $5,000. Each default officer of the company will be held accountable.

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Forensic Audit
Internal Audit
GLOBAL AND LISTED COMPANY AUDIT
OTHER ASSURANCE

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