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AUDIT SERVICES SINGAPORE

Audit Services Singapore for SMEs | Affordable Small Audit Firm Singapore

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Affordable Audit Services & Assurance Services Singapore for SMEs – According to the Accounting and Corporate Regulatory Authority of Singapore (ACRA) , there are a few requirements that will either make your company one that is exempted or one that requires auditing and here are the requirements:

CALL +65 98638665 if you need a quote or Email Tommyksh@shkoh.com.sg

As per July 2015, the new system for audit exemption is as per the following rules and you must fit the criteria to be determined as a “small company”, you can also find out more from ACRA:

  1. Effective of 1st July 2015 with financial years begining on or after 1 July 2015 (those before this dates, old system still apply for YA 2016)

  2. Company is a private company

  3. Fulfils at least two out of three of the following criteria for the immediate past two consecutive financial years.

    • Total Annual revenue of lesser than 10 million

    • Total Assets of lesser than 10 million

    • Total employees count lesser than 50

  4. For a company to be classified as being part of a group

    • Company must be a small company

    • Entire group must be a small group, it must meet two out of three of the quantitative criteria on a consolidated basis for the immediate past two consecutive financial years

    • Disqualified if cease to be private company

    • Does not meet at least two out of three criteria

You can read up more from the official ACRA website.

CALL +65 98638665 if you need a quote or Email Tommyksh@shkoh.com.sg

If you do fulfill any of the requirements, you must audit your company accounts by a Charted Accountant of Singapore. 

SMEs below $10 million in revenue or assets are exempted from auditing due to new rules set forth by the government. 

 

Small companies that are not part of a bigger group that qualify for small company classification are exempted. 

There may be some required by the banks or their suppliers or during merger and acquisition of companies to be placed under audit. Our partners do the necessary work on time & with great care.

Koh Management works closely with multiple Singapore auditing services partners with many years of experience in listed firm and SME firm. This firms are reliable and cost efficient firms with Auditor partners from respected backgrounds.

We only work with professionals that we trust that will handle your cases well.

Contact us today for a quick introduction with our Singapore auditing services partners and find out more about audit services Singapore!

What is an audit?

An audit is an independent, objective examination and evaluation of financial statements, records, operations, internal controls, and compliance with laws and regulations. It is performed by trained professionals called auditors for Audit firms in Singapore.

 

The purpose of an audit is to provide reasonable assurance that an organization's financial statements are free of material misstatement and reasonably present the true financial position, results of operations, and cash flows of the organization. In addition, an audit can help an organization identify weaknesses in internal controls and compliance with laws and regulations.

 

Audits are conducted in accordance with generally accepted auditing standards (GAAS), which set forth the requirements for conducting an audit. These standards include guidelines on planning an audit, identifying and assessing risks, designing and performing audit procedures, and evaluating and communicating audit results.

 

There are different types of audits that can be performed, depending on the needs of the organization. For example, a financial statement audit is conducted to provide assurance that an organization's financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). An operational audit is conducted to assess an organization's efficiency and effectiveness in carrying out its operations. A compliance audit is conducted to evaluate an organization's compliance with laws and regulations.

 

Audits are conducted by independent auditors who are not employed by the organization being audited. The auditor expresses an opinion on the fairness of the financial statements and compliance with laws and regulations based on his or her examination.

 

The auditor's report is addressed to the organization's board of directors and management. It contains the auditor's opinion, as well as any recommendations for improving the organization's financial statements, internal controls, or compliance with laws and regulations.

 

Audits are an important part of an organization's risk management process. They provide a systematic and independent assessment of the organization's financial statements, records, operations, internal controls, and compliance with laws and regulations. By conducts audits on a regular basis, organizations can identify weaknesses in their systems and procedures, and take corrective action to prevent future problems.

 

Why do you need audit?

 

There are a number of reasons why you might need an audit. For example, you may be required to have an audit by law or regulation, or your lender may require an audit as a condition of lending money to your organization. In addition, your board of directors or shareholders may request an audit in order to obtain assurance that the organization's financial statements are accurate and free of material misstatement.

 

An audit can also be helpful in identifying weaknesses in internal controls and compliance with laws and regulations. By conducting an audit on a regular basis, organizations can take corrective action to prevent future problems.

At Koh Management, we have partners with many Affordable Singapore Small audit firms for SMEs that can assist you with your Singapore Audit Services needs. Singapore Auditors with many years of experience to ensure high quality of audit and assurance work done by qualified Certified Public Accountants (CPAs) of Singapore.

If you require an audit service done for your business due to statutory needs or prefer to do it due to requirements from your business associates, you can speak to us of your business requirements so that we can advice and assist you in your business needs. Remember Koh Management is there to assist you through out your business journey. CPA Audit Services Singapore at your service.

Speak to us to be connected to a Certified Public Accountant (CPA) today for your SME Audit Singapore.

CALL +65 98638665 if you need a quote or Email Tommyksh@shkoh.com.sg

Frequently Asked Questions

1. What is the purpose of an audit?
 

  • Answer: The main goal of an audit is to verify that the financial statements are accurate and comply with the relevant financial reporting standards, ensuring they are free from significant misstatements.
     

2. Who needs to be audited?

  • Answer: All Singapore-incorporated companies are required to undergo an audit, although there are exemptions available for small companies that meet specific criteria.

    We also carry out audit for the following purposes:

    • Statutory Audit

    • Maintenance Fund & MCST Audit

    • Charity Audit

    • Gross Sales Audit (usually by shopping malls)

    • Grant Audit

    • BCA Audit

       

3. What is the audit process?

  • Answer: The audit involves several stages, including planning, conducting fieldwork, and finalizing the audit. During this process, the auditor evaluates the company’s internal controls, performs detailed testing, and ultimately forms an opinion on the accuracy of the financial statements.
     

4. How long does an audit take?

  • Answer: The time required for an audit varies based on the company’s size and the complexity of its operations, ranging from a few weeks to several months.
     

5. How much does an audit cost?

  • Answer: Audit fees depend on various factors, including the company’s size, complexity, and the extent of work required. It is advisable to discuss the fees directly with your auditor from the Singapore audit firm you intend to engage. We aim to be provide affordable audit services for Singapore SME companies. 
     

6. What is the auditor’s responsibility?

  • Answer: Auditors are tasked with providing an opinion on the financial statements and ensuring compliance with relevant ethical standards.
     

7. What is management’s responsibility?

  • Answer: The company’s management is responsible for preparing the financial statements accurately and ensuring robust internal controls are in place.
     

8. Can I change my auditor?

  • Answer: Changing auditors is possible, but it requires adherence to specific procedures and approval from the company’s shareholders.
     

9. What is the difference between an audit and a review?

  • Answer: While an audit provides a comprehensive examination of the financial statements and a high level of assurance, a review is less extensive, offering a moderate level of assurance.
     

10. What is a Statutory Audit?

  • A statutory audit is a legally required review of the accuracy of a company's or government's financial records. The key purpose of a statutory audit is to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records, and financial transactions.

  • A statutory audit is usually conducted by an independent auditor or an auditing firm that is not affiliated with the company being audited. This independence is crucial to ensure an unbiased and objective examination of the financial records.

  • The scope and nature of a statutory audit can vary significantly but generally includes:

    • Verification of Financial Statements: Ensuring that the financial statements such as the balance sheet, income statement, and cash flow statement are accurate and complete.

    • Assessment of Accounting Systems and Internal Controls: Evaluating the effectiveness of the organization's internal controls and accounting processes.

    • Compliance with Accounting Standards: Checking whether the company complies with the relevant accounting standards.

    • Legal Compliance: Ensuring that the company is compliant with the legal and regulatory requirements applicable to its financial and operational practices.

    • Reporting: Providing a report or opinion on the financial statements. This report can be unqualified (clean), qualified (having certain reservations), or adverse (if the financial statements are found to be misleading).

11. What is a MCST Audit?
 

In the context of a Management Corporation Strata Title (MCST) in Singapore, an "MCST Audit" refers to the financial audit of the management corporation. This audit is a critical aspect of the governance and financial management of a condominium or a strata-titled property.
 

Here's a more detailed look at what an MCST Audit involves:

  • Purpose of the Audit: The primary purpose of an MCST Audit is to ensure that the financial statements of the MCST accurately reflect its financial position and operations. This is crucial for transparency and accountability to the owners of the strata units.

  • Financial Statements: The audit examines the financial statements prepared by the MCST, which typically include the balance sheet, income statement, and cash flow statement. These documents provide insights into the MCST's financial health, including its assets, liabilities, income, and expenses.

  • Compliance with Laws and Regulations: The audit also checks for compliance with relevant laws and regulations. In Singapore, MCSTs are governed by the Building Maintenance and Strata Management Act (BMSMA), which sets out the legal obligations for managing strata-titled properties. The audit ensures that the MCST is adhering to these regulations.

  • Assessment of Financial Controls: Auditors evaluate the internal controls and processes the MCST has in place for financial management. This includes examining how funds are collected, managed, and expended. Effective financial controls are crucial for preventing mismanagement or misappropriation of funds.

  • Reporting to Unit Owners: After the audit, a report is prepared and presented to the unit owners, typically during the Annual General Meeting (AGM). This report provides an independent assessment of the MCST's financial practices and health.

  • Frequency of Audits: Audits are usually conducted annually. Regular audits help in maintaining consistent financial oversight and in building trust among the unit owners.

  • Selection of Auditors: The auditors are typically independent external parties appointed by the MCST. This independence is crucial to ensure an unbiased and objective audit.

  • Scope of the Audit: The scope can vary but generally includes a review of financial transactions, verification of assets and liabilities, and assessment of compliance with statutory requirements and internal policies.
     

An Affordable MCST Audit is a vital tool for ensuring good management in strata-titled properties. It helps in maintaining financial integrity and trust among the various stakeholders, including the unit owners, the MCST management committee, and other relevant parties. If you require help with your Singapore MCST Audit Services, do contact us at 98638665.

12. What is a Grant Audit?

In the context of business and industry development grants in Singapore, such as the Productivity Solutions Grant (PSG) or the Enterprise Development Grant (EDG), a "Grant Audit" refers to the process of reviewing and verifying that the funds received from the grant are used appropriately and in accordance with the grant's terms and conditions. This type of audit is crucial to ensure accountability and proper utilization of public funds.
 

Here's a more detailed look at what a Grant Audit involves:
 

  • Purpose of the Audit: The primary purpose of a grant audit is to ensure that the grant recipient has used the funds for the intended purposes as outlined in the grant agreement. This involves verifying that the expenses claimed are eligible, necessary, and reasonable for the project or business improvement for which the grant was awarded.

  • Compliance with Grant Terms: The audit checks for compliance with the specific terms and conditions of the grant. This includes adhering to the project scope, timelines, budget allocations, and any other requirements set by the grant-giving body.

  • Financial Reporting and Documentation: The grant recipient is usually required to maintain accurate and detailed records of how the grant money is spent. The audit involves examining these financial records, receipts, and any other documentation that supports the expenditure.

  • Outcome and Performance Measurement: In some cases, especially for grants aimed at business growth or productivity improvement, the audit may also assess the outcomes or performance metrics of the project. This is to ensure that the grant's objectives are being met.

  • Independent Auditors: Grant audits are often conducted by independent auditors to ensure an objective and unbiased review. These auditors are typically external and not affiliated with the grant recipient.

  • Frequency and Timing: The timing and frequency of grant audits can vary. Some audits are conducted after the project is completed and the grant is fully utilized, while others may occur at different stages of the project.

  • Consequences of Non-Compliance: If an audit finds that the grant funds were not used as intended, or there were violations of the grant terms, the grant recipient may face consequences. These can include repayment of grant funds, ineligibility for future grants, and in severe cases, legal action.

  • Preparation by Grant Recipients: To prepare for a grant audit, recipients should maintain organized records of all grant-related activities and expenditures, ensure compliance with the grant agreement, and be ready to provide clear explanations and documentation for the auditors.
     

A Grant Audit is a vital tool for maintaining transparency and accountability in the use of government grants. It helps to ensure that public funds are used effectively and for the intended purposes, thereby supporting the broader economic and social objectives of these grants.

13. What is a Sales Audit / Gross Turnover Audit (GTO Audit)?

A Sales Audit or Gross Turnover Audit is a specific type of audit that focuses on verifying the accuracy and completeness of a business's reported sales or gross turnover. This kind of audit is particularly important for businesses where revenue figures directly impact financial statements, tax liabilities, and, in some cases, compliance with regulatory or contractual obligations. Here's an overview of what this audit entails:

  • Objective: The primary goal is to ensure that the sales or gross turnover reported by a business accurately reflects its actual sales transactions. This involves verifying that all sales have been recorded and reported correctly, and that there are no understatements or overstatements.

  • Scope: The audit typically covers all aspects of the sales process. This includes reviewing sales transactions, invoices, receipt books, point of sale records, and any other documentation related to sales. The auditor may also examine returns, discounts, allowances, and other factors that could affect the gross turnover figure.

  • Verification Methods: Auditors use various methods to verify sales data. This can include tracing transactions from the point of sale to the financial statements, reconciling sales records with bank deposits, and testing the internal controls over sales recording and reporting.

  • Tax Compliance: For many businesses, sales figures are crucial for tax purposes, especially for calculating Goods and Services Tax (GST), and income tax. The audit helps ensure that the business is in compliance with tax laws and that the correct amount of tax is being paid.

  • Contractual Compliance: In some cases, businesses may have contracts or agreements (such as leases or franchising agreements) where payments or royalties are based on gross turnover. An audit ensures that these contractual obligations are met accurately.

  • Fraud Detection: The audit can also serve as a check against fraudulent activities like under-reporting of sales, skimming of cash receipts, or other deceptive practices that could affect the financial health and reputation of the business.

  • Reporting: Upon completion of the audit, the auditor provides a report detailing their findings, including any discrepancies or issues identified and recommendations for improvement.

  • Preparation by Businesses: To prepare for a sales or gross turnover audit, businesses should maintain comprehensive, accurate, and organized records of all sales transactions. Good internal controls and record-keeping practices are essential for a smooth audit process.
     

This type of audit is crucial for businesses as it not only ensures compliance with various legal and contractual requirements but also provides assurance to stakeholders (like investors, creditors, and regulatory bodies) about the accuracy of the business’s financial reporting. If you need help with Affordable Singapore GTO Audit Services or Affordable Singapore Sales Turnover Audit Services. Please let us know at 98638665.

We are able to provide high quality assurance services Singapore. Let us know how we can help

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Email: tommyksh@shkoh.com.sg
Tel:  (65) 9863 8665

Fax:  (65) 6256 9685 

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