Auditing Requirements for Private Companies wef 1 July 2015

New criteria for audit exemption for private companies wef 1 July 2015

Audit of the statutory financial statements of the Singapore private companies for financial years beginning on or after 1 July 2015 is compulsory if 2 out of 3 of the following conditions are met:

  1. Turnover of S$10 million or more,
  2. Gross assets of S$10 million or more, and
  3. 50 or more employees.

The above thresholds are to be applied on a consolidated basis – i.e. including parent and other group companies, and not just the Singapore company.

This new criteria applies to financial years beginning on or after 1 July 2015 regardless of the financial year end date.

An audit may also be required depending on the company’s requirements – for licensing purposes or regulators.

Please let us know if you require the financial statements to be audited or if you require any further clarifications on this new requirement.

Notes

  1. Exemption applies to private companies only (i.e. public companies are not exempt).
  2. For financial periods beginning on or after 1 June 2004, audit is compulsory if company is non-exempt or if the turnover S$5m or more.
  3. Above criteria applies for first 2 financial years beginning on or after 1 July 2015. For 3rd year onwards, the above criteria is to be applied to the 2 consecutive years immediately preceding the financial year.

We can help you

K E Wee & Associates and its affiliates provide services to address the above company financial reporting and tax compliance requirements. Professional fees are dependent on the scope of volume of work required. These are usually driven by type of industry, business size and complexity. Contact us to discuss our services available for all the above requirements and fees.

We are a firm of Chartered Accountants and Public Accountant that provides audit and assurance services. If you require your financial statements to be audited, contact us to explore how we may provide this service to you.