Audit Requirements for Small and Big Businesses
The Singapore Companies Act states that every company (except “Small Company”) must get its financial statements and accounting records audited by an auditor on an annual basis. The auditor examines these records and provides an independent opinion about the fairness of the accounts. This is a mandatory requirement that every company must follow.
Small Company Concept
The Accounting and Corporate Regulatory Authority (“ACRA”) has introduced the new concept of “small company” and allows for qualifying companies to reduce regulatory costs as they have fewer audit requirements to comply with, such as:
- No requirement for its profit and loss accounts, or consolidated accounts and balance sheets to be audited by an approved auditor;
- No requirement to provide members of the company with copies of the auditor's report;
- No requirement to present copies of the auditor's report at its Annual General Meeting (“AGM”).
A company will need to fulfil any two of the following requirements in order to qualify as a small company in each of the immediate past two financial years (“FYs”):
- Total Revenue not more than S$10 million;
- Total Assets of not more than S$10 million; or
- Number of employees not more than 50.
For companies that are part of a group, the entire group must qualify as a small group.
If you require assistance to have your accounts audited or obtain a quotation for an audit service, kindly contact us with your requirements.