{"id":106522,"date":"2023-12-27T13:53:17","date_gmt":"2023-12-27T05:53:17","guid":{"rendered":"https:\/\/premiatnc.com\/sg\/?p=106522"},"modified":"2023-12-27T13:53:21","modified_gmt":"2023-12-27T05:53:21","slug":"singapore-statutory-audit-requirements","status":"publish","type":"post","link":"https:\/\/premiatnc.com\/sg\/blog\/singapore-statutory-audit-requirements\/","title":{"rendered":"What are the Statutory Audit Requirements in Singapore?"},"content":{"rendered":"\n
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If you are thinking of starting a business or incorporating a company in Singapore<\/a>, you will need to be familiar with the legal requirements. One of them is the Singapore statutory audit requirements.<\/p>\n\n\n\n

The Singapore statutory audit applies to almost all companies incorporated in Singapore and yours will likely fall within that bracket.<\/p>\n\n\n\n

To help you through the entire process, we will take a look at the Singapore statutory audit requirements and everything you need to know about it.<\/p>\n\n\n\n

Singapore Statutory Audit Requirements<\/h2>\n\n\n\n

The Singapore statutory audit is performed externally to ensure that a company meets and complies with all the laws and regulations.<\/p>\n\n\n\n

There are a few exemptions to the statutory audit but any company that doesn\u2019t qualify for an exemption is required to undergo a statutory audit and meet the Singapore statutory audit requirements.<\/p>\n\n\n\n

Such companies are expected to appoint an auditor within the first three months of its incorporation. The audit usually involves a look at the company\u2019s financial records to ensure compliance and reveal any discrepancies or errors.<\/p>\n\n\n\n

The Accounting and Corporate Regulatory Authority (ACRA) is in charge of company law and regulation in Singapore; therefore, they oversee the Singapore statutory audit requirements as well. <\/p>\n\n\n\n

Companies Exempted from the Statutory Audits<\/h2>\n\n\n\n

One thing you should note is that certain companies are exempted from meeting Singapore statutory audit requirements. To that end, the companies in this category are not required to undertake a statutory audit. <\/p>\n\n\n\n

All small companies fall under the exemption banner and are not required to undertake the statutory audit.<\/p>\n\n\n\n

To be classified as a small company, the company must be private for the given financial year and meet at least 2 of the following requirements:<\/p>\n\n\n\n

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  1. Have less than 50 employees<\/li>\n\n\n\n
  2. Must have under 10 million Singapore dollars in asset value<\/li>\n\n\n\n
  3. Not more than 10 million Singapore dollars in annual revenue<\/li>\n<\/ol>\n\n\n\n

    Companies that cease to be private at any time during a given financial year will be liable to the statutory audit.<\/p>\n\n\n\n

    Furthermore, for a company to continue being classified as small and being exempt from statutory audit, it must maintain at least two of the above criteria for a minimum of 2 years.<\/p>\n\n\n\n

    To ensure your company complies with these regulations, you can seek external help from Premia TNC. Our experts are ready to help your business with the Singapore statutory audit requirements.<\/p>\n\n\n\n

    It is important to note that being exempted from statutory audits only excuses you from the audits themselves.<\/p>\n\n\n\n

    You will still have to file your unaudited financial statements<\/a>. There will be no auditing of the company\u2019s accounts, but the company\u2019s financial reports will still need to be filed. <\/p>\n\n\n\n

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    Appoint Us as Your Audit Agent Today!<\/a><\/div>\n<\/div>\n\n\n\n
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    Why Does the Audit Status of a Company Change?<\/h2>\n\n\n\n

    If a company has been classified as a small company, or as part of a small group, it will tend to retain that classification unless they are disqualified.<\/p>\n\n\n\n

    There are one of two possible reasons a company\u2019s status changes from being a small company. <\/p>\n\n\n\n

    The first reason is that the company ceases to be classified as private during a financial year.<\/p>\n\n\n\n

    The second reason is that it no longer meets at least two of the requirements for exemption from the statutory audit.<\/p>\n\n\n\n

    You should note that for a company to cease being a small company, it needs to fail to meet at least 2 of the small company exemption criteria, for two financial years.<\/p>\n\n\n\n

    What Happens to Your Company If There is Non-compliance with the Statutory Audit?<\/h2>\n\n\n\n

    Every company in Singapore that isn\u2019t exempted from a statutory audit is required to appoint an auditor within its first three months of incorporation<\/a>.<\/p>\n\n\n\n

    In the event of non-compliance, the person(s) guilty of the offense shall face a maximum fine of 5,000 Singapore dollars and any other default penalties.<\/p>\n\n\n\n

    To ensure your company does not default this mandate, the company is required to notify the registrar of:<\/p>\n\n\n\n