Audit and Assurance

Audits are carried out periodically to ensure an organisation’s accounts comply with financial reporting and auditing standards. It is typically carried out by an independent party to give a true and fair view of the organisation’s financial affairs.

At NLA DFK, our team of audit and assurance experts are kept abreast of both old and new accounting rules, with extensive experience across multiple industries.

With close knowledge of our clients’ business processes and accounting systems, we tailor our financial reporting accordingly while fully adhering to Singapore Financial Reporting Standards (FRS) issued by the Accounting Standards Council (ASC).

High quality audits with independence and integrity bolster confidence as well as boost trust between our clients and their stakeholders.

Our Audit and Assurance Services

Our highly trained and experienced accountants can provide the following audit and assurance services in Singapore to corporate and individual clients:

  • Statutory audits
  • Drafting of financial statements
  • Introduction of new standards and processes
  • Support recurring accounting and reporting compliance
  • Update of accounting tools and function
  • Remediation of potential issues
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Frequently Asked Questions About Audit and Assurance in Singapore

1. What type of company needs to be audited?

Under the Singapore Companies Act, every company must get its financial statements and accounting records audited by an auditor annually unless the company meets the audit exemption requirement.

2. What is the audit exemption requirement for a small company?

Audit exemption allows certain companies to not have its accounts annually audited by an auditor. This audit exemption is applicable for financial years beginning on or after the change in the law from 1 July 2015 onwards.

Under the amendment of the Singapore Companies Act, the Small Company Concept was introduced. A company is considered to be a small company if it fulfils the following criteria:

  1. Is a private company in the financial year in question and
  2. Fulfils at least two out of the following three criteria:
  1. Total annual revenue of the company ≤ $10 million;
  2. Total assets of the company for the end of the financial year ≤ $10 million;
  3. Number of full-time employees at the end of the financial year ≤ 50.  

A company that qualifies as a small company does not have to appoint an auditor and have its accounts audited. However, it is still required to prepare financial statements and file annual returns with the Accounting and Corporate Regulatory Authority (ACRA).

At NLA DFK, we can help your company draft unaudited financial statements and also assist with the filing of the annual returns if we are also acting as your company’s corporate secretary.

3. What is the audit exemption requirement for a group company?

A group company – holding company and its subsidiary companies— can also be exempted from an annual audit of its accounts if the holding and all its subsidiary companies individually fulfil the following criteria:

  1. Qualify as a small company and
  2. Entire group must be a “small group”

 

To qualify as a small group, the group company – holding company and its subsidiary companies— must fulfil at least two out of the following three criteria:

  1. Total annual revenue of the company ≤ $10 million;
  2. Total assets of the company for the end of the financial year ≤ $10 million;
  3. Number of full-time employees at the end of the financial year ≤ 50.  

In summary, the group company – holding company and its individual subsidiary companies— must fulfil the eligibility criteria of a small company.

A group company that qualifies as a small company does not have to appoint an auditor and have its accounts audited. However, it is still required to prepare financial statements and file annual returns with the Accounting and Corporate Regulatory Authority (ACRA).

At NLA DFK, we can help your group company draft unaudited financial statements and also assist with the filing of the annual returns if we are also acting as your group company’s corporate secretary

4. When will a small company be disqualified?

A small company is disqualified if it:

  1. Ceases to be a private company at any time during a financial year; or
  2. Does not meet at least 2 of the 3 quantitative criteria for the immediate past two consecutive financial years.

If a group company is qualified as a small group, it will continue to be a small group for subsequent financial years until it does not meet at least 2 of the 3 quantitative criteria for the immediate past two consecutive financial years.

5. What are the audit and assurance requirements for a dormant company?

Dormant companies are exempt from preparing financial statements if they fulfil the following criteria:

  1. Total assets < S$500,000; and
  2. If the company has been dormant from the time of formation or since the end of the previous financial year.

Being a dormant company does not exempt it from preparing accounts as they will still need to be presented to the shareholders for the Annual General Meeting (AGM).