Statutory audits are defined as official assessments of the financial records of a business. Statutory audits are conducted in a manner which is adherent to the official government standards and regulations of the country in which the business is located. The scope of a statutory audit is defined by the relevant government agency or agencies of the country in which the audit is to take place. Most companies in Singapore are required to undergo statutory audits. The government authority which oversees all statutory audits which take place in Singapore today is the Accounting and Corporate Regulatory Authority (ACRA).
Details of Company Statutory Audits in Singapore
When a Singapore company undergoes a statutory audit, there is specific information which is analyzed. Such information includes the statement of profit or loss and comprehensive income, the statement of cash flows including the notes to the financial statements, the statement of the company’s financial position, the statement of changes in equity, and a summary of all of the company’s primary accounting policies. Each of these must be analyzed by the auditors in order for the company’s statutory audit to be completed.
Of course, before your company can undergo a statutory audit, it must first be incorporated. This is an area in which we at Paul Hype Page & Co have deep knowledge; thus, we will be able to fulfill any of your needs related to incorporation. We will keep you informed about everything you might need to know about company incorporation and registration in Singapore so that your company will be duly established in a manner which is compliant with Singapore’s strict but fair incorporation laws.
Statutory Audits of Singapore Companies and the Law
Companies which are to undergo audits according to the business laws of Singapore must do so in order for ACRA and other government authorities to ensure that such a company is compliant with the directions stipulated by the regulatory bodies of Singapore. Every Singapore-based company which is required to undergo the process of statutory auditing must appoint a qualified auditor within three months of its incorporation date. Depending on the business in question, the auditing process can sometimes be an internal requirement which is imposed to determine the veracity and reliability of the company’s own financial report. For this reason, it is possible for a Singapore company to voluntarily undergo one or more statutory audits at any time.
Singapore’s laws related to statutory audits also specify the punishments to be imposed on any company which is found to have been in violation of the statutory audit laws. Such violations may include the failure to appoint an auditor within the stipulated three-month period following the company’s incorporation as well as the submission of misleading or fraudulent information regarding the audit to ACRA or any other authorities. Punishments for such offenses include fines as well as default penalties.