What is Statutory Audit?

A statutory audit is a legally required examination of your company’s financial statements by an independent public accountant. In Singapore, this audit ensures your financial records comply with ACRA’s requirements and the Singapore Financial Reporting Standards (SFRS). The auditor will verify your company’s financial position, performance, and cash flows to provide stakeholders with reliable financial information.

Who is Required to Prepare Statutory Audit?

Understanding audit requirement in Singapore is crucial for business compliance. Here are the companies that need to conduct statutory audits:

  • Public companies listed on SGX
  • Companies with annual revenue exceeding $10 million
  • Companies with total assets worth more than $10 million
  • Companies with more than 50 employees
  • Companies that are part of a group that doesn’t qualify as a “small group”
  • Companies that fail to meet small company criteria for two consecutive financial years
  • Financial institutions and specific regulated entities
  • Companies with corporate shareholders
  • Companies with more than 20 shareholders

Who is Exempted to Prepare Statutory Audit in SIngapore?

Private companies may qualify to be exempted from audit if they meet the following criteria:

For Financial Years Beginning Before 1 July 2015:

  • All shareholders must be individuals
  • Total number of shareholders less than 20
  • Annual turnover below S$5 million

For Financial Years Beginning On or After 1 July 2015:

A company must qualify as a small company by meeting at least 2 of these 3 criteria for two consecutive financial years:

  • Annual revenue not exceeding $10 million
  • Total assets not exceeding $10 million
  • Number of employees not exceeding 50

For Group Companies:

  • The company must qualify as a small company
  • The entire group must qualify as a “small group” based on consolidated figures
  • Must meet at least 2 of the 3 small company criteria at group level

Importance of Statutory Audit Services

A statutory audit plays a crucial role in maintaining your company’s compliance with Singapore’s regulatory requirements. Here’s why it matters:

  • Ensures compliance with ACRA’s requirements and Singapore Financial Reporting Standards
  • Builds credibility with stakeholders, banks, and business partners
  • Helps identify financial risks and internal control weaknesses
  • Provides assurance on the accuracy of financial statements
  • Supports business loan applications and investment opportunities
  • Maintains good corporate governance practices

Steps to Statutory Auditing

The statutory audit process in Singapore involves several key stages:

1. Planning Phase

  • Review of company’s business nature and operations
  • Assessment of internal control systems
  • Identification of potential risk areas

2. Execution Phase

  • Detailed examination of financial records
  • Verification of transactions and balances
  • Collection of audit evidence
  • Testing of internal controls

3. Completion Phase

  • Review of audit findings
  • Discussion with management
  • Preparation of audit report
  • Issuance of audited financial statements

Why Hire External Statutory Audit Services

Engaging professional audit services in Singapore offers several advantages:

Independence and Objectivity

Our external audit partners maintain strict independence to ensure unbiased assessment of your audited financial statements in Singapore.

Expertise and Experience

Access to qualified professionals who understand company audit procedures and audit requirement in Singapore according to ACRA regulations.

Time and Resource Efficiency

Focus on your core business while leaving the complex audit process to specialists.

Quality Assurance

Comprehensive review that meets professional standards and regulatory of Singapore audit requirements.

How Much Does Our Statutory Audit Service in Singapore Cost?

Our statutory audit services are competitively priced to provide value for Singapore companies:
Starting Fee: $2,800 Per Audit

This base fee applies to active companies with:

  • Simple business structure
  • Low transaction volume
  • Well-maintained financial records
  • Clear documentation

Note: Final pricing may vary based on:

  • Company size and complexity
  • Transaction volume
  • Quality of accounting records
  • Additional audit procedures required
  • Group structure (if applicable)

Contact us for a customised quote tailored to your company’s specific needs and circumstances.

FAQs

What is the purpose of a statutory audit?

A statutory audit is an official inspection of an organization’s financial records by an external entity. It is conducted to determine if the subject’s audited financial statements and records are accurate, and it is not voluntary.

What is the difference between non-statutory audit and statutory audit?

Statutory audits are focused on compliance with laws and regulations, while non-statutory audits can have broader objectives, involving performance evaluation and risk assessment.

What are the basic audit requirement in Singapore for new companies?

New companies should understand their audit obligations from the start. The basic company audit requirements depend on your business structure, revenue, and other qualifying criteria as set by ACRA.

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