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Local Statutory Audit

Home/Our Services/Audit and Assurance/Local Statutory Audit
Local Statutory Audit2021-03-29T10:35:15+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.


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.

How We Operate

Once you hire us for a local statutory audit, we take a look at all your company’s financial records. We check the legitimacy of all the presented documents. Further verification is done by analysing if these documents are established in compliance with the GAAP (Generally Accepted Accounting Principles). We sort out all errors, discrepancies, misstatements and misrepresentations.

During the auditing process, our staff will relay their findings to the management to help the company improve its operations and compliance. We have professionals who are trained in particular industries and sectors, allowing them to deliver guided insights into the potential challenges that your business might face.

Before the start of the audit, our team will ask how your company operates and the risks it deals with. We customise how we do things according to your needs so that you’ll receive an audit of high quality.

Our Method

For our firm, the public interest is paramount. This is the basis of our auditing method. We operate following applicable local international standards guidelines and adjust our process based on our clients’ needs, simultaneously. This approach allows us to quickly adapt to the company’s current situation.

Our local statutory audit includes an analysis of the following:

  • Bookkeeping records

  • Bank balances

  • Financial transaction entries

  • All necessary auditory requirements

Afterwards, we create an audit report based on the observations of our skilled team. Our generated reports are always in line with the rules set by the Financial Reporting Standards. 

Our error-free report is made possible by our thorough analysis of every venture and transaction made by the company. We make sure that no loopholes will escape our scrutiny. These cracks are one of the common reasons behind a company’s downfall. By addressing these issues, you avoid the penalties incurred by non-compliance. Determining all the risk factors of a company is the proof of an excellent statutory audit.

Identifying Risk Areas

Our auditing approach includes a focus on understanding our clients’ operations and determining key risk areas. We then gauge the performance of the company’s internal control over those areas. Afterwards, we discover and deal with any residual issues arising from our evaluation and follow-up with additional auditing processes to prove our report. This enables us to cover all bases efficiently and effectively without leaving any potential risks undiscovered.

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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Partner, Audit and Assurance
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Partner, Audit and Assurance
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Partner, Audit and Assurance
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