Foreign investors who are interested in the business environment in Singapore should know that the local legislation stipulates that companies set up here are required to pass through an audit process, which is performed by registered accountants in Singapore. If you need to perform an audit for your company, our accounting firm in Singaporecan provide you with assistance in this matter.
Audit legislation in Singapore
Singapore is one of the most important business hubs in the world, with a legal system favorable to forein investors. Recently, Singapore enabled a new set of regulations, issued by the Institute of Singapore Chartered Accountants (ISCA); the new regulations promote a better environment for audit transparency.
The set of regulations imposed by ISCAwill be enforced for financial statement audits carried out for periods ending on 15 December 2016 or after this date.
Under the new regulations, the auditors will have to specify the main audit issues on the audit of financial statements carried out for listed legal entities. Auditors will also be required to verify if the legal entity for which they have carried out the audit disclosed in their financial statements information for the company management’s judgement.
Our accountants in Singapore invite you to watch a short video about audit requirements:
Audit in Singapore
Our accountants in Singapore organize their activity in accordance with the local and international standards of auditing. As a general rule, the audit procedure focuses on the financial statements of a company; the accountants will analyze the key features of the statements, identifying possible financial risks, which is one of the main responsibilities of an auditor.
The accounting services provided by our local accountants are delivered by a team of multi-disciplinary professionals, who can give advice related to the accounting policies applied by the company or the financial performance of the company.
Our team of experts offers a wide variety of audit services in Singapore, having a strong knowledge when it comes to the local and international accounting principles. These are completed by a thorough knowledge of organization systems, controls and processes. Our accountants in Singapore can provide more detailed information on the types of audit services we offer.
Audit requirements for businesses in Singapore
According to the Singapore Commercial Law, all businesses in the city-state have to name an auditor in maximum three months from the incorporation date. The Profit and Loss Account and the balance sheet have to be audited yearly. In Singapore, limited liability companies must also issue an Estimate Chargeable Income, which will have to be among the documents forwarded to the Inland Revenue Authority.
However, in compliance with the Company Act from 2014, small businesses in Singapore are exempt from having to audit their accounts. These businesses have to meet the following requirements:
• The maximum yearly turnover has to be SGD 10 million;
• The total assets do not have to exceed SGD 10 million;
• It should have up to 50 employees.