Statutory Audit Services in Singapore
What is a Statutory Audit?
A statutory audit is a mandatory external audit required by law, aimed at ensuring transparency and compliance with regulatory standards. In Singapore, all companies must appoint a qualified auditor within three months of incorporation, unless they meet specific criteria for exemption. This requirement ensures that companies maintain proper financial practices and comply with local laws.
The auditor’s role is to review the company’s financial statements, providing an independent assessment of their accuracy and adherence to accounting principles and regulations. This process is vital for building trust with stakeholders and ensuring the company operates with financial integrity.
Our Audit Approach
Our audit methodology is designed to provide reasonable assurance that the financial statements are accurate and in compliance with applicable accounting standards and statutory requirements.
We begin by gaining a thorough understanding of our client’s business and identifying key risk areas. We then evaluate the effectiveness of the company’s internal controls concerning these risks. Once potential risks are identified, we implement additional audit procedures to form our final opinion. This process ensures we conduct a timely and efficient audit, focusing on high-risk or significant areas.
Our diverse client portfolio includes both local businesses and multinational corporations, giving us the ideal blend of technical expertise and business acumen to serve various industries.
Audit Preparation Tips for Smooth Compliance
Proper preparation is key to a successful audit. To ensure a smooth and efficient process, consider these strategies:
Inform Key Personnel
Notify relevant employees and stakeholders about the audit dates and their respective roles in the process. Holding a pre-audit meeting to discuss expectations, answer questions, and address concerns can help clarify the process for everyone involved.
Organise Documents
Collect all necessary financial records in advance. Prepare a checklist of required documents to avoid missing anything important. Using digital storage systems will make documents easy to access during the audit. Ensure everything is properly labelled and organised for quick reference.
Reconcile Accounts
Review financial statements, including accounts receivable, accounts payable, and ledgers. Rectify any discrepancies before the audit date by cross-checking records against bank statements, invoices, and transaction reports. This ensures that the audit reflects a true and accurate financial picture.
How to Check if You Qualify for an Exemption
For Private Limited Companies
A company can qualify for an exemption if it meets at least two of the following criteria for the last two consecutive financial years:
- Annual revenue does not exceed S$10 million
- Total assets do not exceed S$10 million
- The number of employees does not exceed 50
For Companies Part of a Group
If the company is part of a group, the entire group must meet the same criteria on a consolidated basis for the last two financial years. This includes the ultimate holding company, which may be a foreign entity.
Consequences for Non-Compliance
Failing to appoint an auditor on time or submitting inaccurate information to ACRA can result in penalties.
According to Section 173A (1), companies must notify the Registrar within 14 days after a change in the appointment of key personnel, such as directors, CEOs, secretaries, or auditors. Failure to comply with this requirement may lead to fines under Section 173H (1) of the Act. A company officer who defaults may face a fine of up to S$5,000 upon conviction.
Ensure your company remains financially compliant by engaging reliable statutory audit services.
Contact WLP for expert assistance in navigating your audit needs.