Singapore Audit Requirements: Does Your Company Need an Audit?

In short: A Singapore private company needs a statutory audit unless it qualifies as a “small company”. It qualifies by meeting at least 2 of 3 tests (revenue up to S$10 million, total assets up to S$10 million, 50 or fewer employees) for the past two financial years. A subsidiary also needs its whole group to pass. Exempt companies still prepare financial statements.

Which Singapore companies must be audited?

Under the Companies Act, every company’s financial statements must be audited unless an exemption applies. The two main exemptions are:

Public companies, and private companies that don’t meet the small company test, need an auditor. Shareholders holding at least 5% of the issued shares can also ask for an audit even if the company is exempt.

What is the small company test?

Your company is a small company, and exempt from audit, if:
1. it is a private company throughout the financial year; and
2. it meets at least 2 of these 3 criteria for each of the two immediately preceding financial years:

| Criterion | Limit |
|—|—|
| Total annual revenue | S$10 million or less |
| Total assets at year end | S$10 million or less |
| Full-time employees at year end | 50 or fewer |

New companies (in their first two years) are checked against the current financial year instead. Once you qualify, you stay a small company until you stop being private or fail the 2-of-3 test for two years in a row.

Does a subsidiary of a foreign group need an audit?

Often, yes. Foreign founders miss this most often. A Singapore subsidiary is exempt only if it is a small company and its entire group, including foreign parents and sister companies, meets the 2-of-3 test on a consolidated basis. So a small Singapore subsidiary of a large overseas group usually needs an audit even if its own numbers are tiny.

Update: ACRA announced a review of the audit exemption thresholds on 26 February 2026, including whether subsidiaries could qualify on their own. Until ACRA announces changes, the rules above apply. (Re-check before publishing.)

If my company is exempt, what do I still have to do?

Exemption from audit isn’t exemption from accounts. You still need to:
– keep proper accounting records for at least 5 years;
– prepare unaudited financial statements that comply with the Companies Act, accompanied by a Statement by Directors;
– file your annual return with ACRA; and
– file your corporate tax return (Form C-S/C) with IRAS. Form C asks whether you’re claiming the audit exemption.

What kinds of audit and assurance work are there?

• Statutory audit: the yearly audit of a non-exempt company’s financial statements, done by an ACRA-registered public accountant, who gives an independent opinion on whether they show a true and fair view.
• Internal audit: a review of your controls, risk management and governance. It’s not legally required for most private companies, but it’s useful as the business grows.
• Review of financial statements: a lighter, limited-assurance check. Banks or investors sometimes accept it when the company is exempt from a statutory audit.
• Agreed-upon procedures: the auditor carries out specific checks you agree on, such as a sales or inventory count, and reports the findings without giving an opinion.
• Special-purpose audits and grant claim audits: these include due diligence, forensic reviews and audits of government grant or subsidy claims, where the grant terms ask for it. Check your grant’s letter of offer.
• Sustainability reporting assurance: independent assurance over the figures in a sustainability report.

Should an exempt company get an audit anyway?

Sometimes. A voluntary audit or review can help you raise funds, apply for bank facilities, prepare for a sale or due diligence, or report to a foreign parent. It also gives you an independent check of your controls. Shareholders holding at least 5% of the issued shares can also require an audit.

Who regulates auditors in Singapore?

ACRA registers and oversees public accountants, and only an ACRA-registered public accountant or accounting entity can sign a statutory audit report. ISCA is the national accountancy body that supports the profession. MAS sets additional audit and reporting requirements for financial institutions.

How much does an audit cost in Singapore?

There’s no fixed government fee. An audit is quoted by the audit firm. What drives the price:

Contact us for a quote. Share your latest management accounts and we’ll tell you whether you need an audit, and what it would involve.

When does the audit need to be done?

The audited (or unaudited, if exempt) financial statements must be ready in time for your AGM, or circulation to members, and your annual return filing with ACRA. Then your Form C-S/C is due to IRAS by 30 November. Plan the audit 2–3 months before those dates. (Use the ACRA annual return guide for exact deadlines. Don’t restate them here while the 20 Oct 2026 ACRA changes are being confirmed.)

Frequently asked questions

Does a new Singapore company need an audit?
Usually not, if it’s a private company that meets 2 of the 3 small company criteria in its current financial year and, if it’s a subsidiary, its group does too.

My company is dormant. Do I need an audit?
Dormant companies can be exempt from audit, subject to conditions. They still need to file the required documents.

Is a Singapore subsidiary of a large overseas group audit-exempt?
Only if the whole group meets the 2-of-3 test on a consolidated basis, which large groups usually don’t.

Can shareholders insist on an audit?
Yes. Shareholders with at least 5% of the issued shares can require one.

How much is an audit in Singapore?
It depends on size, complexity and the state of your books. Contact us for a quote.

Need an audit, or proof you don’t?

• Statutory audit services
• Accounting services (from S$1,200 a year; corporate tax filing quoted separately)
• Does my private company need an audit? (exemption guide)
• Corporate tax services
  Get an audit quote: WhatsApp us

Sources: ACRA “Audit exemptions: Small company concept”; Companies Act s205C and the Thirteenth Schedule; ACRA news “Review of Audit Exemption Framework” (26 Feb 2026); IRAS Explanatory Notes to the YA2026 Form C; IRAS record keeping.