Understanding The Importance Of Audit In Singapore

Auditing is a crucial aspect of financial and corporate governance, ensuring compliance with regulations and transparency in business operations. In Singapore, audits play a significant role in maintaining investor confidence, meeting legal requirements, and promoting corporate integrity.

Why Auditing is Important

Audits help businesses identify financial discrepancies, ensure tax compliance, and maintain credibility among stakeholders. In Singapore, auditing is particularly vital due to its strong regulatory framework, which requires companies to adhere to strict financial reporting standards.

Types of Audits in Singapore

Statutory Audit – Required under the Companies Act, this audit company singapore ensures financial statements comply with Singapore Financial Reporting Standards (SFRS).

Internal Audit – Conducted to assess a company’s internal controls and risk management.

Tax Audit – Ensures accurate tax reporting and compliance with the Inland Revenue Authority of Singapore (IRAS).

Special Audits – These are conducted for specific purposes, such as forensic audits or mergers and acquisitions.

Who Needs an Audit?

In Singapore, small exempt private companies (EPCs) with revenue below SGD 10 million are not required to conduct statutory audits. However, larger businesses and companies that exceed the criteria must undergo annual audits by a certified public accountant (CPA).

Conclusion

Audits are essential for maintaining trust, compliance, and financial accuracy. Businesses in Singapore should engage professional audit firms to ensure they meet legal obligations and strengthen their financial credibility.