The audit scene in Singapore is highly developed and regulated, as it determines and maintains the integrity and credibility of the country’s business and financial institutions. The accounting and auditing industry here is overseen by several regulatory bodies, including the Accounting and Corporate Regulatory Authority (ACRA), the Institute of Singapore Chartered Accountants (ISCA), and the Monetary Authority of Singapore (MAS).
These regulatory bodies collaborate to ensure that auditors adhere to the highest ethical and professional standards, upholding values of transparency and integrity. With a well-established legal and regulatory framework, the auditing industry in Singapore is well-respected both domestically and internationally.
Learn More: How To Prepare Financial Statements In Singapore?
From the different benefits your company gets from an audit to the audit services offered, here’s everything you need to know about audits in Singapore.
1. Benefits Of Business Audits In Singapore
Company audits in Singapore offer several benefits for businesses, investors, and other stakeholders. Some of the key advantages include:
- Enhances Credibility And Trust: By providing independent assurance on the accuracy and reliability of a company’s financial statements, auditing helps to build credibility and trust with investors, creditors, and other stakeholders. This can lead to increased confidence in the company’s financial position and ultimately support its long-term success.
- Improves Financial Management: Auditing provides valuable insights into a company’s financial health, which can help your managers make better decisions and improve financial management practices. This in turn leads to improved efficiency, better use of resources, and ultimately better financial results.
- Ensures Compliance With Regulations: Auditing helps to ensure that a company complies with regulatory requirements and industry standards. By ensuring compliance with regulations, your company will be able to avoid legal and financial penalties and operate in a responsible and ethical manner.
- Helps Detect And Prevent Fraud: Auditors are trained to identify and investigate fraud and other irregularities, which will definitely help you avoid any fraudulent activities in a company. This is especially important for maintaining the integrity of financial reporting and ensuring that stakeholders have accurate information to make informed decisions.
2. Audit Services In Singapore
There are different audit services in Singapore that are provided by audit firms depending on the type of client and the nature of the engagement. Some of the common audit services include:
- Statutory Audit – This is a mandatory audit for companies in Singapore, requiring them to have their financial statements audited by a licensed audit firm. This provides an independent opinion on the accuracy and fairness of a company’s financial statements.
- Internal Audit – Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation achieve its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
- Special Purpose Audit – Special purpose audits are conducted for specific purposes, such as compliance audits, due diligence audits, forensic audits, and grant audits. These audits are tailored to meet the specific needs of the client.
- Review Of Financial Statements – This service involves a review of a company’s financial statements to ensure that they are in compliance with accounting standards and that there are no material misstatements.
- Agreed-Upon Procedures – Agreed-upon procedures are customised audit procedures that are agreed upon between the client and the auditor. The objective of an agreed-upon procedure engagement is to carry out specific procedures on a subject matter and report the factual findings.
- Sustainability Reporting Assurance – Sustainability reporting assurance is a service provided to clients who prepare sustainability reports, where the auditor provides assurance on the information disclosed in the report.
3. Special Purpose Audit/Certification For Subsidy Claim Audit
The Special Purpose Audit or the Certification For Subsidy Claim Audit is a type of audit performed by an independent auditor to verify the accuracy and validity of subsidy claims made by an organisation or individual. This audit is typically required by government agencies for specific purposes, such as research and development, training, or business development. It ensures that the claims made by the recipient are legitimate and that the funds are being used for the right purposes.
The financial records and supporting documents of the organisation or individual will be examined during the audit to verify the accuracy of the subsidy claims. The auditor will also review the internal controls and processes in place to ensure the claims are being used in accordance with the guidelines and regulations set by the funding body.
An example of a special purpose audit is for the various government business grants such as the Market Readiness Assistance (MRA) grant, which requires the grantees to conduct an audit of the activities completed under the project scope before issuing the reimbursements.
If you would like to know more about audit and incorporation services in Singapore, our team at Paul Hype Page can guide you through your inquiries. Contact us today to know more!