Audit & Assurance
Making sure of your work isn’t just the right thing to do; for some companies, it’s a statutory duty.
There’s a lot more to telling the public about how well your company is doing than it may first appear. Not only does it involve numbers, but also ensuring that those numbers are put forth accurately.
The Institute of Singapore Chartered Accountants (ISCA) has standards in place to serve the public interest, in line with the International Auditing and Assurance Standards Board (IAASB). With the help of the Public Accountants Oversight Committee (PAOC), the Accounting and Corporate Regulatory Authority (ACRA) likewise keeps a watchful eye on the public accountants under the Accountants Act.
Placing such emphasis on monitoring and compliance with regulations assures the public that what they see, at any given time, is a clear and unadulterated picture of a company’s financial health. This picture, in turn, will enable them to make better informed decisions as to whether they should transact or invest in this company, and to what extent. In a word, they’ll know whether that company deserves their trust.
In that sense, a third-party provider of audit & assurance services serves as an impartial judge of a company’s trustworthiness. The public should be able to take that provider’s word for it, that a company is reliable and financially sound.
Gain the public’s trust with auditing assistance from U Ventures.
Why choose U Ventures for your company’s audit & assurance in Singapore?
- As a provider of comprehensive accounting solutions, we have a team of experienced auditors who can assist with internal audits as well as statutory reporting requirements.
- We have more than 10 years of extensive experience in accountancy, management and corporate compliance.
- Our goal is to help you achieve your business goals with detailed audits that help you and your stakeholders better understand your company’s performance and gain insight into its management.
- Our auditors are on-call and can conduct auditing services on-site at your offices, at your convenience.
- We are well-versed in audit laws, regulations and standards set by the Singaporean government and international authorities.
What exactly is involved in audit & assurance?
When performed in compliance with regulations, audits involve an annual review of financial statements which include
- Statement of Comprehensive Income
- Statement of Financial Position
- Statement of Changes in Equity
- Cash Flow Statement
The auditor goes over reports made by the accounting team in meticulous detail, to make sure everything is correct and presented in the formats mandated by law.
Audits are performed in accordance with the Accountants Act as well as ISCA Standards, the Singapore Standards on Auditing (SSA), and Singapore Financial Reporting Standards (SFRS). The rules of the Singapore Exchange (SGX), the Monetary Authority of Singapore (MAS) and other authorities that require audited financial reporting are also taken into consideration.
Audits are likewise conducted with a view to the interests of the company’s shareholders and potential investors. On top of meeting regulatory requirements and ensuring the accuracy of a company’s accounting, internal audits also help the company’s key management to identify areas of your business operations that could be in need of streamlining or improvement.
Know the audit requirements of your company.
In Accordance with Singapore’s Companies Act, with effect from 1 July 2015, small companies will exempted from statutory Audit. A company is defined as a Small Company under this change if it fulfils 2 out of 3 of the following criteria. (1) More than 50 employees, (2) has more than S$10 million in total assets, or (3) more than S$10 million in annual revenue.
For companies who are part of a Group of companies, the same criteria would be applied to the Group of companies. For a group to be considered a small group,the must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
Some companies are also required to turn in audited interim financial statements, while others might need audited statements to receive bid for projects, receive grants or make claims. Some others are part of a group of companies or an international conglomerate and need to standardise their audits across the board. Companies that are a part of a group will be assessed along with the group as a whole.
A few pointers to consider before you outsource your accounting:
- Corporate Compliance / Statutory Reports
- Independent Reviews
- Accounting Reports
- Accounting Systems Review / Internal Audit (Rental Audit, Operational Audit, Information Technology Audit, Departmental Review and Business Review Accounting Advisory)
- Financial Due Diligence
- Financial Statements Audit (SFRS / IFRS)
- Extensible Business Language (XBRL) Financial Reporting
- Management Corporation (MCST) Audit
- International Standard Audits
- IFRS Conversion
- Agreed-Upon Procedures Engagements
- Investigative / Forensic Audits
- Follow-Up Audits
We answer your Frequently Asked Questions about audit & assurance services in Singapore:
What are the latest changes in the Singapore Companies (Amendment) Act?
The Singapore Companies (Amendment) Act 2017 greatly affects the way companies will have to comply with statutory requirements, making it easier for them to do business and making company management affairs more transparent. Beginning at the end of March 2017, complete implementation has been set for early 2018.
The changes governing financial statements in particular affect how long companies need to retain their documentation, the destruction of company documents, relocation for foreign companies, and the requirement for the corporate secretary to be stationed at the company’s official address.
How do I choose a good auditor?
The Accountants Act stipulates that only registered public accountants can act as auditor for a company. In choosing a third-party provider of audit & assurance services, make sure that your prospective auditing team meets all of ACRA’s requirements for registering public accountants.At U Ventures, we can advise you on which business structure can best suit your needs, be it a sole proprietorship, partnership or private limited company. Learn more on our Incorporation Services page.
Find out whether the auditor has undergone ACRA’s Practice Monitoring Programme (PMP), which makes sure that the requirements of the Singapore Companies Act and the SSA are met.
A good auditor should also have ample experience in conducting a wide variety of audits for companies across industries, particularly in your own. The audit & assurance provider should also be able to offer insight and advice based on the audits as to how your company’s business operations and performance may be improved.
What are some examples of Non-Statutory Audits?
A non-statutory audit is one that is not required by law, although there are audits that some companies need to perform on demand. Examples of a non-statutory audit are those asked of charities when applying for grants or donations. Other examples are audits that determine the financial standing of individual traders, partnerships, and small companies, as well as clubs and associations.
Do audit exemptions apply to foreign companies?
ACRA also requires foreign companies and their branches to submit audited financial statements, unless they have the approval of the Registrar to be relieved of their auditing requirements.
Are there any legal considerations if I wish to change my company’s auditor?
ISCA says that if a public accountant should be asked to replace another, he has to find out whether there are any reasons for not taking over from the former auditor, such as threats to compliance or professional competence. If the public accountant is unable to get in touch with the former auditor, he has to conduct inquiries or investigations; otherwise, he is advised to refuse the offer.
In this light, it would be better to be above-board and straightforward with your reasons for wishing to replace your auditor when approaching a new, prospective auditor, and to readily provide the relevant information to the new auditor upon request.
What’s the difference between a financial audit and a forensic audit?
A financial audit determines whether your company’s financial statements accurately reflect its financial standing. A forensic audit, on the other hand, determines whether fraud or asset-theft has been committed. An auditor is required to undergo special training to be able to perform forensic audits.
We’ve had the privilege of serving clients across a variety of industries:
“I believe I’ll continue to engage the services of U Ventures and also friends from F&B businesses which are usually located in different locations with multi outlets will find the clinics and their networks and link user friendly and provide a one stop support and solution for day to day matters for restaurants.”Lorance Toh
“As an entrepreneur myself, I believe the “think out of the box” clinic model will bring U Ventures services closer to home to many more businesses and expand their business outreach to many more customers at their convenience.”Roy Tay
Get in touch with us at U Ventures to get your accounting done right.
6001 Beach Road #22-01
Golden Mile Tower Singapore 199589
(65) 6735 8135
Let’s scale your business growth together, today.
Come for a chat with us at U Ventures to discuss your audit & assurance requirements, today.