Audit Firm Singapore: Do You Need an Auditor?

Find the right audit firm in Singapore, understand statutory audit requirements, costs, timelines and exemptions, and prepare your company for an efficient a...

TLDR: An audit firm in Singapore independently examines a company's financial statements and issues an audit opinion. TLDR: Singapore companies generally need to appoint an auditor unless they qualify for an audit exemption under the Companies Act 1967. TLDR: ACRA's small company audit exemption criteria include total revenue of no more than S$10M, total assets of no more than S$10M and no more than 50 employees. TLDR: A statutory audit is different from an IRAS tax audit and does not replace tax filing, accounting or corporate secretarial compliance. TLDR: E&H Corporate Services can coordinate audit preparation with accounting, tax, payroll and corporate secretarial work.

An audit firm in Singapore provides independent audit and assurance services under the Companies Act 1967, and a company generally must appoint an auditor unless it qualifies for an audit exemption. ACRA states that the small company thresholds are total revenue ≤ S$10M, total assets ≤ S$10M, employees ≤ 50. The right audit company in Singapore helps business owners confirm whether an audit is required, prepare complete records, meet filing deadlines and understand the audit opinion.

What does an audit firm in Singapore do?

An audit firm independently examines a company's financial statements and reports whether those statements present a true and fair view under the applicable financial reporting framework.

An audit company evaluates accounting records, supporting documents, internal controls, financial statement disclosures and selected transactions. The audit firm obtains evidence through procedures such as document inspection, confirmations, reconciliations, analytical review and discussions with management.

An auditing company does not prepare and independently audit the same financial statements without addressing independence requirements. The auditor's role is to provide an independent opinion, while the company's directors and management remain responsible for the financial statements and underlying records.

Audit and assurance services can include statutory audits, group audits, special-purpose audits, internal control reviews and other assurance engagements. The engagement scope depends on the company's legal obligations, reporting framework, group structure, financing arrangements and stakeholder requirements.

When must a Singapore company appoint an auditor?

A Singapore company must appoint an auditor unless the company qualifies for an audit exemption or another applicable legal exception.

The Companies Act 1967 provides the legal basis for company audit requirements in Part VI Division 2. A private company should assess its audit obligation for each financial year rather than assuming that a previous exemption, low activity level or small balance sheet automatically continues.

ACRA states that a company qualifies as a small company for audit exemption purposes when it meets the applicable criteria. A company is a small company when it satisfies at least two of the following criteria for each of the immediate past two consecutive financial years: total revenue ≤ S$10M, total assets ≤ S$10M, employees ≤ 50.

A company that belongs to a group must also consider the group-level conditions for audit exemption. A subsidiary may fail the exemption test when the group does not qualify for the relevant small company treatment, even if the subsidiary itself is small.

Dormant companies may have separate treatment under Singapore company law. A dormant company should confirm the applicable exemption with its corporate secretary or audit firm instead of assuming that inactivity removes every statutory obligation.

What is the difference between a statutory audit and an IRAS tax audit?

A statutory audit tests financial statements under company law, while an IRAS tax audit examines tax matters under Singapore's tax legislation.

A statutory audit supports the company's financial reporting and corporate compliance obligations. An IRAS tax audit concerns the accuracy of tax declarations, tax computations, supporting records and tax positions. The two processes can use overlapping accounting records, but they have different purposes and authorities.

IRAS may request records or examine accounts as part of a tax audit. Completion of a statutory audit does not guarantee that IRAS will accept every tax treatment, and an IRAS tax audit does not replace a statutory audit where the Companies Act 1967 requires one.

A coordinated accounting and tax process helps reduce duplicated requests. E&H Corporate Services can help maintain accounting records, tax schedules and supporting documentation before an external audit or tax review.

How does an audit process work in Singapore?

A typical audit moves from engagement planning to evidence testing, management queries, completion procedures and issuance of the audit report.

1. Confirm the audit obligation and scope. The company and audit firm determine whether the engagement is a statutory audit, group audit, special-purpose audit or another assurance service. The parties identify the reporting period, accounting framework, subsidiaries, deadlines and expected deliverables.
2. Appoint the auditor. The company appoints an auditor who meets the applicable requirements and confirms independence, competence, availability and engagement terms. ACRA maintains a public list of accepted auditors and accounting firms that is updated monthly.
3. Prepare the accounting records. The finance team closes the ledger, reconciles bank accounts, reviews receivables and payables, records accruals, checks fixed assets, updates inventory records and prepares the trial balance.
4. Submit the audit request list. The auditor requests the general ledger, invoices, contracts, bank statements, payroll reports, tax computations, board minutes, loan documents, schedules and explanations for significant balances.
5. Perform audit procedures. The audit firm tests selected transactions and balances, evaluates relevant controls, performs analytical procedures and obtains external confirmations or other evidence where appropriate.
6. Resolve audit queries. Directors and management respond to questions, provide missing documents, explain unusual movements and assess proposed adjustments. The auditor evaluates whether the evidence supports the reported balances and disclosures.
7. Complete the audit. The auditor performs final procedures, reviews subsequent events, considers going concern matters, obtains management representations and evaluates identified misstatements.
8. Issue the audit report. The audit firm issues an audit opinion and communicates relevant findings to the directors or those charged with governance. The company then completes its statutory filing and other compliance work.

What documents does an audit company need?

How long does an audit by a Singapore audit firm take?

An audit timeline depends on the company's transaction volume, record quality, group structure, reporting complexity and speed of management responses.

A straightforward small-company audit can move efficiently when the accounts are closed, reconciliations are complete and the audit request list is answered promptly. A group audit, inventory-heavy business, regulated activity, rapidly growing company or business with weak records usually requires more time.

The audit timetable normally includes an engagement stage, planning, fieldwork, query resolution, final review and report issuance. The company should agree the timetable with the audit firm before the financial year-end, particularly when the company has an annual general meeting, lender deadline, investor reporting date or filing deadline.

Processing times vary. An audit firm cannot responsibly confirm a final completion date before reviewing the company's scope, records and reporting requirements.

How much does an audit firm in Singapore charge?

Audit fees depend on the work required, so a reliable quote requires information about the company's accounts, operations and reporting obligations.

An audit company typically considers revenue and asset volume, number of bank accounts, transaction count, inventory, foreign subsidiaries, related-party transactions, accounting system, prior audit issues, record quality and reporting deadline. The audit fee can also change when the company has unusual transactions, incomplete records or significant adjustments.

A company should request a written proposal that identifies the audit period, scope, deliverables, expected management responsibilities, out-of-pocket expenses, accounting assistance and treatment of additional work. The lowest quoted fee may not represent the lowest total compliance cost if the engagement excludes necessary preparation or requires repeated corrections.

E&H Corporate Services can help a company organise its accounts and supporting schedules before the audit begins. Better-prepared records can reduce avoidable audit queries and make the final scope easier to assess, although preparation does not guarantee a lower fee.

How should a business choose an auditing company in Singapore?

A business should choose an auditing company based on eligibility, independence, relevant sector experience, communication quality, scope clarity and ability to meet the company's deadline.

1. Check auditor acceptance and eligibility. Use ACRA's list of accepted auditors and accounting firms as part of the due diligence process.
2. Match experience to the business. Ask whether the audit firm has worked with the company's industry, revenue model, inventory profile, cross-border activity, financing structure and accounting framework.
3. Confirm independence. Ask whether the proposed audit team has relationships or services that could create an independence issue. Separate accounting, tax and audit responsibilities where required.
4. Review the proposed team. Identify the engagement partner, audit manager, day-to-day contact and escalation route. A responsive team can materially affect the time required to resolve queries.
5. Compare scope rather than headline fees. Confirm whether the proposal includes planning, fieldwork, financial statements, audit report, management letter, group reporting and follow-up on prior findings.
6. Test the workflow. Ask how the audit firm collects documents, tracks requests, protects confidential data and communicates outstanding items.
7. Agree the timetable. Set dates for ledger close, draft financial statements, audit fieldwork, query resolution, final sign-off and statutory filing support.
8. Consider connected compliance work. Businesses often benefit when accounting, tax, GST, payroll and corporate secretarial records are maintained in a coordinated workflow, while the statutory audit remains independent.

What audit opinions can a Singapore audit company issue?

An audit opinion communicates the auditor's conclusion about whether the financial statements are presented fairly in accordance with the applicable reporting framework.

An unmodified opinion states that the auditor identified no material issue requiring a modification to the opinion. An auditor may issue a modified opinion when the financial statements contain a material misstatement or when the auditor cannot obtain sufficient appropriate evidence.

A qualified opinion describes a matter that is material but not pervasive to the financial statements, or a limitation on audit evidence with a material but not pervasive effect. An adverse opinion states that misstatements are both material and pervasive. A disclaimer of opinion states that the auditor cannot obtain sufficient appropriate evidence and the possible effects are material and pervasive.

An emphasis of matter paragraph draws attention to a matter that is appropriately presented or disclosed in the financial statements. An emphasis of matter does not by itself modify the audit opinion.

An audit opinion is not a guarantee that a company has no fraud, error or future financial difficulty. The auditor provides reasonable assurance based on audit evidence and professional standards.

What are the common audit problems for Singapore companies?

Incomplete reconciliations, unsupported balances, late closing, weak document retention and unresolved prior-year issues are common causes of audit delays.

A company can reduce these problems by closing the books monthly, reconciling every bank account, reviewing aged receivables and payables, retaining contracts and invoices, tracking fixed assets, documenting related-party transactions and maintaining a clear approval trail.

Payroll records should reconcile to the general ledger and CPF submissions. GST returns should reconcile to the accounting system and supporting tax schedules. Corporate secretarial records should reflect changes in directors, shareholders, share capital and registered office details.

Management should investigate material movements before the audit fieldwork starts. Early review gives the company time to correct classification errors, record missing accruals, assess recoverability and gather evidence without compressing the final audit timetable.

How does audit preparation connect with accounting and corporate compliance?

Audit preparation is more efficient when accounting, tax, GST, payroll and corporate secretarial records are maintained as one coordinated compliance process.

The accounting records provide the starting point for the audit. Tax computations and GST returns explain tax balances. Payroll and CPF records support staff costs and statutory liabilities. Corporate secretarial documents support the legal structure, ownership information and significant company decisions.

E&H Corporate Services supports Singapore business owners with company incorporation, corporate secretarial, accounting, tax advisory and payroll services. A coordinated service model can help keep records current throughout the year, while the appointed audit firm performs its independent audit work. See our guide to business incorporation in Singapore and GST compliance overview for related preparation.

An audit firm in Singapore should receive final, internally reviewed accounts rather than being used as a substitute for routine bookkeeping. Businesses that maintain accurate monthly records generally have better visibility over cash flow, tax exposure, profitability and compliance deadlines.

What should a company do before appointing an audit firm?

A company should confirm its audit obligation, close its accounts, assemble core records and compare written proposals before appointing an audit firm.

1. Review the legal requirement. Confirm whether the company must be audited or qualifies for an audit exemption, including any group-level considerations.
2. Define the reporting period. Confirm the financial year-end, reporting framework, statutory filing timetable and any lender, investor or parent-company requirements.
3. Assess the records. Identify unreconciled accounts, missing invoices, old receivables, unrecorded liabilities, inventory differences, tax issues and unusual transactions.
4. Prepare a company profile. Give prospective audit firms information about the industry, revenue, assets, employees, subsidiaries, overseas activity, accounting software and prior audit findings.
5. Request proposals. Ask for fees, scope, staffing, deliverables, timetable, assumptions, exclusions and charges for additional work.
6. Check the engagement terms. Review independence, confidentiality, data handling, management responsibilities and communication arrangements.
7. Appoint the auditor promptly. Early appointment gives the audit firm time to plan the work and gives management time to resolve accounting issues before year-end.

What are practical examples of audit requirements?

A company's audit obligation and preparation priorities depend on its size, group structure, activity level and quality of financial records.

Example 1: Growing technology company. A Singapore technology company has recurring subscription revenue, overseas customers and a recent investment round. The company should prepare revenue contracts, deferred revenue schedules, foreign currency records, share documents and investor reporting before fieldwork. The company should assess its audit obligation using both its own figures and applicable group conditions.

Example 2: Trading company with inventory. A trading company has significant stock held at a third-party warehouse and several slow-moving product lines. The audit firm is likely to focus on inventory existence, valuation, cut-off and obsolete stock. The finance team should prepare inventory listings, count records, warehouse confirmations, purchase documents and subsequent sales evidence.

Example 3: Small professional services company. A professional services company has low transaction volume and no inventory but has several director balances and incomplete expense documentation. The company should assess whether it qualifies for audit exemption and should separately resolve related-party balances, expense support and tax records. Small scale does not remove the need for accurate accounts and statutory filings.

Example 4: Dormant subsidiary. A subsidiary has had no trading activity during the financial year but remains part of a wider corporate group. The directors should confirm the dormant-company and group-level rules before assuming that no audit work is required. The company should retain evidence supporting its status and complete any remaining statutory obligations.

What questions should a business ask an audit company?

How can E&H Corporate Services support audit readiness?

E&H Corporate Services helps Singapore businesses organise the accounting and compliance records that an independent audit firm needs.

E&H Corporate Services provides company incorporation, corporate secretarial, accounting, tax advisory and payroll support for business owners and founders. These services can help maintain reconciliations, tax schedules, GST records, payroll documentation, statutory registers and board records throughout the year.

E&H Corporate Services does not replace the independent judgment of the appointed auditor. The audit firm remains responsible for audit procedures and the audit opinion, while management remains responsible for the financial statements and records.

For an overview of audit exemptions and thresholds, see our audit & XBRL FAQ and annual compliance FAQ.

Need help preparing for an audit? E&H Corporate Services can review your accounting records, corporate secretarial information, tax schedules, GST returns and payroll documentation, then coordinate an audit-readiness plan for your business.

What is an audit firm in Singapore?

An audit firm in Singapore is an accounting practice that performs independent audit and assurance engagements for companies and other entities.

Does every Singapore company need an audit?

Every Singapore company should assess its audit obligation, but a company may qualify for an audit exemption under the Companies Act 1967.

What are the small company audit exemption thresholds?

ACRA states that the small company thresholds are total revenue ≤ S$10M, total assets ≤ S$10M, employees ≤ 50.

What is the difference between an audit company and an accounting company?

An audit company independently examines financial statements, while an accounting company generally records transactions, prepares accounts and provides financial reporting support.

How much does an audit company in Singapore cost?

Audit fees vary according to transaction volume, record quality, group structure, reporting complexity, industry and required deadline.

How long does a company audit take?

An audit timeline varies according to the company's records, scope, transaction volume, group structure and speed of management responses.

Can E&H Corporate Services perform my statutory audit?

E&H Corporate Services supports accounting, tax, payroll and corporate secretarial preparation, while an appointed independent audit firm performs the statutory audit and issues the audit opinion.