Situation update for auditing in Singapore co.

Under the Singapore Companies Act, private limited liability companies in Singapore are required to submit to the Accounting and Corporate Control Authority of Singapore (ACRA) an English language financial report or audit report compiled in accordance with the standards of the Singapore Institute of Certified Public Accountants in each financial year.

In Singapore, audit can be divided into

In Singapore, audit can be divided into

The audit of the firm is generally regarded as an independent audit, and the firm accepts the internal audit commission of the government or the enterprise, and participates in the government audit or internal audit.

The audit of the firm is generally regarded as an independent audit, and the firm accepts the internal audit commission of the government or the enterprise, and participates in the government audit or internal audit.

 A. 

The conditions for audit of Singapore companies, companies that meet any of the following conditions are required to audit:

1. The total sales and total assets of the Singapore company and its affiliated groups are greater than SGD 10 million;

2. The total sales of the Singapore company and its affiliated groups are more than S $10 million and the number of employees is more than 50;

3. The total assets of the Singapore company and its affiliated groups are greater than S $10 million and the number of employees is greater than 50.

In accordance with Singapore's Company law, all Singapore companies are required to prepare financial and directors' reports, meet compliance requirements, and issue statutory audit reports after submitting them to auditors for audit.

 B. 

A statutory audit may not be performed if either of the following exemption requirements are met:

1. Annual gross income of SGD 10 million or less

2. Total assets less than SGD 10 million

3. Less than 50 employees

 C. 

Singapore corporate audit regulations

1. After incorporation of a Singapore company, at least one auditor must be appointed within three months, except for companies exempt from audit;

2. The auditor shall hold office from the date of appointment of the auditor until the end of the next annual general meeting of the Company. Therefore, when a newly established Singapore company first appoints an auditor, the auditor will remain in office until the end of the company's first annual general meeting;

3. The auditor must be a Certified public accountant approved by the Accounting and Corporate Regulatory Authority (ACRA) or from the corresponding accounting firm;

(4) If the directors fail to appoint auditors on time, any member of the company may apply to the Government to appoint auditors for the company;

5. Auditors are required to review the company's financial statements for compliance with financial reporting standards and to provide a true and fair view of the company's financial position and performance;

6. The auditor's audit report must be completed before the general meeting and attached to the financial statements;

7. The auditor has the right to access all the accounting records of the company or to obtain required information from the management of the company for audit purposes

 D.

Purpose and importance of corporate auditing in Singapore

1. For directors of a company, the purpose of audit is to enable directors to better supervise and supervise the operation of the company management with limited time and energy;

2. Audit will expose errors and drawbacks in financial accounts, reduce or eliminate information risks, so that directors can understand and analyze the company's development status through correct information;

3. The company can use this audit report for bidding, bank loans, tax-related authentication, and avoidance of corporate tax risks;

4. The audit report is a "proof of ability" and a "tax payment certificate" for the company;

5. For the creditors of the company, the audit report can effectively help the creditors to analyze the solvency of the enterprise, and make corresponding loan decisions to determine whether to grant loans, the scale, term and interest rate of loans;

6. Audit can effectively improve the accuracy of financial information;

7. For company managers, audit can prove their company operation ability;

8. In addition, potential investors can obtain more effective information through audit reports, and managers are more likely to obtain more funds from investors;

9. For investors, making investment based on enterprise information provided by audit reports can greatly reduce information risks and improve the accuracy of investment decisions;

10. For the government, auditing can ensure that enterprises are operating in good economic order and is to ensure the stability of the entire national economy.

To sum up, no matter who the demand side of the audit report is, the motivation of audit is to reduce the information risk, ensure the information symmetry of each demand side, and maintain the economic order.

D.

Consequences of failing to conduct a Singapore company audit as required

Overdue annual audits will result in fines, if the annual audit is not conducted in accordance with the requirements for a long period of time, the company will be forced to cancel the Accounting and Corporate Regulatory Authority (ACRA), and the credit of the company's directors will be affected.

If you need any more information, feel free to contact SOLUTIONS. We will be glad to assist you.

SOLUTIONS

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