Audit and assurance:
Audit is an essential part of the business by engaging a professional independent Public Accountants to perform necessary audit procedures to ensure the company’s accounts are prepared in compliance with Singapore Financial Reporting Standards and Companies Act, and the accounting records are kept properly. This is to ensure the financial statements of the company are properly drawn up to give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the company.
There are many reasons why the company want its accounts to be audited as below:
(i) The company do not meet the audit exemption criteria
(ii) The company wish to obtain business loan, bank overdraft, credit cards, hire purchase, etc from financial institutions
(iii) The company wish to ensure the accounts are prepared properly in accordance with Singapore Financial Reporting Standards, any non-compliance could be costly to the company (eg. fines and penalties from regulatory bodies)
(iv) Investors or shareholders require the accounts to be audited for the assurance that the accounts are free from material mistatements
(v) External parties such as suppliers wish to have the audited accounts before granting favorable credit terms
(vi) Improve internal control of the Company as the audit performed can identify area of weaknesses
(vii) Fraud detection
Audited Financial Statements contains:
- Directors’ Statement
- Independent auditors’ report
- Statement of Comprehensive Income – Income Statement
- Statement of Financial Position – Balance Sheet
- Statement Of Changes In Equity
- Statement of Cash Flows
- Notes to the Financial Statements
Exemption from Audit requirement:
The audit exemption is applicable for financial years beginning on or after the change in the law (1 Jul 2015) if the company qualify as a small company or a company which is part of a small group.
A company qualifies as a small company if:
(a) it is a private company in the financial year in question; and
(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
(i) total annual revenue ≤ $10m;
(ii) total assets ≤ $10m;
(iii) no. of employees ≤ 50.
For a company which is part of a group:
(a) the company must qualify as a small company; and
(b) entire group must be a “small group” to qualify to the audit exemption.
For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:
(a) it ceases to be a private company at any time during a financial year; or
(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
How much it costs?
Non-statutory audit services:
Non-Statutory audit services comprise of:
(i) Audit for non-corporate entities such as partnerships, clubs, associations and charitable bodies
(ii) Rental, sales audit, gross turnover audit (GTO Audit)
(iii) Expenses audit
(vi) Internal audit
(v) Due Diligence
Why choose us?
Professional Qualified Staffs
We have a team of professionally qualified accountants and tax agents with professional qualifications from relevant bodies such as ACCA, CPA and CA (Singapore).
COMPLIANCE WITH LATEST STANDARDS AND REGULATIONS
We would keep track of all the changes and implement them as and when required, making sure that our clients are always in the good books of the financial market regulators.
It may be quite costly to have a proper accounting department headed by a professionally qualified accountant teamed with an assistant accountant and several account clerks. Same tasks can be done more cost effectively by outsourced to a professional service provider that can handle the tasks for you.