What is audit?
Audit is an examination of records or financial accounts.
When to appoint Auditor?
An auditor must be appointed within three months from the date of incorporation unless
it is exempted from audit requirements.
When to audit accounts?
The Companies Act requires the financial statements of every company to be audited
once every year. The audited accounts ad reports have to be filed with the Registrar
within one month after the AGM.
Why do we need to audit financial accounts?
Audit is purposed for judging the reliability of the financial statements and the supporting
accounting records of the company for a particular financial period. The objective of the
process is to produce a value judgment of whether the financial statements disclose a
“true and fair” view of state of affairs of the company.
What are the benefits in auditing accounts?
- It helps to identify weaknesses in accounting systems, internal controls and key areas
-It adds credibility to published information for employees, customers, suppliers,
investors and tax authorities
-It helps in detection of error and fraud against the business
-It educates the business owner
Who are exempted in audit requirements?
Under Companies Act, Exempt Private Companies (EPC) with annual revenue below S$5
million are not required to have their accounts audited. However, they will need to
submit their Directors’ Report (unaudited financial statements).
What is a Financial Statement?
It includes Balance Sheet, Statement of Comprehensive Income, Statement of Financial
Position, Statement of Changes in Equity, Statement of Cash flows and notes to the