In Singapore, not all firms are mandated to conduct a statutory audit. According to the Singapore Companies Act, exempting companies from undergoing audit is allowed for firms falling under small companies or for firms within a small group of companies. Those companies exempt from audit are:

1. Small Companies

A company qualifies for audit exemption if it meets at least two of the following three criteria for the past two consecutive financial years:

Annual revenue ≤ SGD 10 million
Total Assets ≤ SGD 10 Million
Number of employees ≤ 50

A company that does not meet these criteria is required to undergo a statutory audit.

2. Small Groups

For companies that are part of a group, audit exemption applies only when:

The individual company qualifies as a small company; and
The entire group, on a consolidated basis, meets at least two of the same three quantitative criteria for the past two financial years.

3. Dormant Companies (Under Certain Conditions)

Also exempt from audit are companies which are considered dormant and have no major accounting activities or transactions.

Companies NOT eligible for exemption:

Public companies
Financial Institutions (Banks, Insurance Companies, Fund Management Companies)
Those that do not meet small company requirements

When it comes to companies that need to audit or improve their auditability and overall accounting compliances, professional help is required. Based on your company's need for credible Auditing Services in Singapore.

With professional assistance and processes, One IBC Singapore makes it easy for businesses to comply with audit requirements under Singapore law.

FAQs: Auditing