Why Company Audits are important?
According to the Companies Act, all companies in Singapore which are not legally exempt must be audited.
An audit can be defined as an independent and systematic assessment of statutory records, books of accounts, and financial documents of an organization.
Audit Exemption Effective Date
On 1 July 2015, the Companies (Amendment) Act was put into applicable for financial years beginning on or after the change in the law, allowing more small companies to qualify for an audit exemption in Singapore.
Qualification Criteria for Audit Exemption
To qualify, companies must:
– It is a private company in the financial year in question
– It meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
- Total annual revenue not exceeding S$10 million
- Number of full-time employees at the end of the financial year must not exceeding 50
- Total assets not exceeding S$10 million for the end of the financial year
Group Company Audit Requirement
A group company is defined as a holding company (also known as a Parent company) and its subsidiaries that together form a group due to a common source of control.
A group company will be exempt from annual audit of its accounts if the holding and all subsidiary companies individually:
- Fulfil at least 2 of the small company qualifying conditions and
- Belong to a “small group”
To qualify as a “small group”, the group (comprising of all the companies) must fulfil two out of the following three conditions in the immediate two preceding financial years:
- The consolidated revenue must not exceed S$ 10 million;
- The consolidated total assets must not exceed S$ 10 million;
- The total number of employees of the group must not exceed 50.
In other words, this means that to qualify for the audit exemption, the individual subsidiary companies as well as the holding company, as a group, must fulfil the eligibility criteria of a small company.
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Reasons to Choose Us
Audit services provided by a certified public accountant (CPA) like Paul Hype Page & Co, benefits all Singaporean companies. Paul Hype Page is a full practicing member of ICPAS, providing audit services and able to issue IRAS approved audit report from $4,500 onward.
Over the past 13 years, we have gained vast experience in accounting as well as auditing services. We are CPA Singapore certified company. Thus, you should know that your company’s accounting matters will be in good hands after you have contacted us for our services.
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