With the recent amendments to the Singapore Companies Act which introduces the “small company” concept, most companies in Singapore will be exempted from audit. However, the banks and investors continue to rely on a set of audited accounts as part of their process in assessing the strength of the company’s financial position and to ascertain the value of the company. For the shareholders, audited accounts provide added credibility and also give them the assurance that the company is well-managed by the directors.
In performing an audit, one needs to have a deep insight of the industry and a clear understanding of the client’s business processes. The industry knowledge and understanding of client’s operations will enable the auditor to identify and assess the various risks that could impact on the client’s business, goals and the presentation of the audited financial reports. We are mindful of the auditor’s role which is to safeguard the interests of shareholders and owners of the company. Therefore, we expect our auditors to be competent as well as independent in carrying out an audit assignment.
Audit Engagement
If you require your accounts to be audited, we can provide you with quality audit reports (and supporting audit papers and accounting schedules) comparable to those produced by large audit firms. Every audit assignment is treated with care and dedication - you will be assigned a Senior/Manager level Audit staff to oversee your Company’s audit – regardless of the size of your job. We believe that by working on a fixed fee (based on the complexity of the audit work involved) and charging by the number of hours worked, the client can be assured that the audit is completed in good time, without undue delay.
At Aspri Associates, we work closely with a select panel of medium-size audit firms so we can allocate audit jobs according to the right “fit” of experience and fees. Our team and our audit partners’ staff undergo continuous training to stay abreast of updates in FRS and audit principals, so you can be assured that in our case being “small” means that we can be more flexible and nimble in adapting to changes and offering you customized audit packages.
Audit Exemption Criteria
For a Company which is part of a Group, to qualify for audit exemption:
- the Company must qualify as a small company; and
- the entire group must be a “small group” (the Group must meet at least 2 of the 3 small company criteria [listed above] on a consolidated basis for the immediate past two consecutive financial years).
Small Company Eligibility
To be eligible to be considered a Small Company, a Company must meet 2 out of 3 of the following criteria:
- Annual Turnover is less than S$10m
- Number of Staff is less than 50 at end of each financial year
- Value of Total Assets is less than S$10m