Is It Compulsory To Audit My Singapore Company Accounts?
A Singapore company must audit its accounts depending on its size and type. Companies qualify for an audit exemption if they meet two of the following criteria for the past two financial years: annual revenue ≤ SGD 10 million, assets ≤ SGD 10 million, and ≤ 50 employees. This exemption also applies to groups. However, public companies and their subsidiaries must conduct audits.
The Singapore Companies Act provides specific criteria that determine if a company is required to have its accounts audited. Here are the general guidelines:
Small Company Exemption
A company can be exempt from audit requirements if it qualifies as a "small company" for the immediate past two financial years. To qualify as a small company, it must meet at least two of the following three criteria:
Total annual revenue of not more than SGD 10 million.
Total assets of not more than SGD 10 million.
No more than 50 employees.
Group Exemption
A company that is part of a group can qualify for audit exemption if it meets the small company criteria, and the entire group must qualify as a "small group". To qualify as a small group, the group must meet at least two of the three criteria mentioned above on a consolidated basis for the immediate past two financial years.
Other Considerations
Public Companies and Subsidiaries of Public Companies: These companies are generally required to audit their accounts, regardless of size.
Dormant Companies: Companies that have been dormant from the time of formation or from the end of the previous financial year do not need to audit their accounts, provided they meet certain conditions.
Specific Requirements: Some companies may be required to audit their accounts due to specific requirements from regulatory bodies, financial institutions, or stakeholders.
Recent Changes and Updates
It's important to note that regulations and thresholds can change. The Singapore government periodically reviews and updates its regulatory framework to ensure it remains relevant and supportive of the business ecosystem. Therefore, it's advisable to consult the Accounting and Corporate Regulatory Authority (ACRA) website or a professional auditor/accountant in Singapore for the most current information and personalized advice.
While many small companies in Singapore can enjoy the audit exemption, it's crucial for business owners and managers to stay informed about the specific criteria and conditions that apply to their companies. If in doubt, seeking professional advice can help ensure compliance with Singapore's regulatory requirements.
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