In this day and age, having the capital, manpower, products or services doesn’t mean you can start a business as fast and as easy as it used to be. Since we are living in a digital world where fraud is prevalent and corruption is rife, many countries in the world have tighten their rules and regulations when it comes to starting and running a business. Gone were the days when you can file for bankruptcy to discharge most of your debts including lawsuit judgments. Companies are now required to have their annual accounts audited to prove to the their business investors, lenders and to the government that they are operating as they claim to be. Every country in the world has their own set of rules when it comes to the frequency and type of audit each company should undertake. Audits are done to prove that the business’ financial statements are not materially misstated and are presented fairly in accordance with applicable accounting standards as well as relevant statutory requirements.
As a country that relies heavily on businesses, Singapore has established regulations and requirements for all forms of audit. The authority that governs the laws and regulations of companies, the Inland Revenue Authority Singapore (IRAS), has set statutory requirements when it comes to the scope and nature of the auditing program in the country. The Accounting and Corporate Regulatory Authority (ACRA) on the other hand, believes that quality audits are the hallmark of the audit profession. The national regulator of business entities, public accountants and corporate service providers in Singapore is very strict when it comes to the quality of audit in the country. The ACRA even introduced Audit Quality Indicators (AQIs) Discussion Framework in October 2015 in order to enhance the discussions between audit committees and audit firms during selection or reappointment of auditors. The Framework is aimed at equipping audit committees with information which will allow them to exercise their professional judgements on elements that contribute to audit quality.
As one of the country’s leading incorporation firms, Enterprise Assurance PAC provide quality audit which is conducted in accordance with the Singapore Standards on Auditing (SSA) and other requirements. Our expert public accountants are not only focused on generating reports but they are also committed to encouraging and educating business people about their roles in the audit process and the value of a good audit. EAPAC know and believe that audit quality will increase if senior audit team members, company directors, preparers of financial statements, and investors are involved in the audit process.
Should I seek the services of an audit firm?
In Singapore, a company should undertake an audit annually to provide a full picture of the company’s financial position and operational results. Some of the reasons why you need to get your business audited are outlined below.
- You are seeking access to financing or potential investors.
- You need assurance related to financial performance in anticipation of a possible liquidity event
- Non-active owners (i.e, a family member not involved in the day-to-day operations) are requesting an audit to help them evaluate the business decisions being made.
- You are planning to sell your business. An audit will help you achieve the maximum sale price for your business.
- The bank requires it for a loan or to check on the health of your company.
- Your landlord requires it to ensure your financial health before they grant you longer terms or an expansion plan.
- A supplier requests an audit to see if you are able to pay the amount of products they will supply you with. The supplier needs to know whether your assets are real before they grant you credit.
- The government requires it before providing you with certain grants (requirements for the programme, eg. Spring Singapore)
The benefits of undergoing an audit
Audited financial statements will allow you to:
- be prepared for the changing needs of your company.
- point out your organisation’s weaknesses and strengths. The audit will help you plan your next step towards utilising your company’s strengths and addressing its weaknesses.
- make intelligent business decisions that will benefit not only the stakeholders but also your employees and clients.
- have more insight into your operational effectiveness, controls and risk.
EAPAC'S Auditing Services Singapore
Statutory audits are conducted to determine whether a company is providing accurate representation of its financial position. It is a legally required external audit completed annually to meet specific requirements set by the Singaporean Government.
EAPAC perform this type of audit in compliance with SSAs and FRSs. We look into the financial statements of an organisation as well as its business operations to determine its true financial state.
Special audits is a limited-scope examination of financial records and it is conducted when it is suspected that laws or regulations have been violated in the financial management of an organisation. It is designed to investigate allegations of fraud, theft or misappropriation of funds – or to quantify the extent of such losses. A special audit assists management in identifying and focusing on key areas and issues.
This type of audit is not required by any law or statute and its primary goal is to review and verify the company’s business. It is performed to identify weaknesses of an organisation which may hamper productivity and efficiency level of the business.
EAPAC conducts non-statutory audits for non-corporate entities such as partnerships, clubs, associations and charitable bodies.
An internal audit is undertaken to help an organisation achieve its objectives. It involves examination, monitoring and analysis of activities related to a company’s operations, business structure, employee behavior and information systems. It also assesses the effectiveness of risk management, control and governance processes in an organisation.
EAPAC are currently conducting internal audits for MAS registered businesses to ensure that they are or will be complying with the requirements set forth by the Monetary Authority of Singapore.
Audit of Government Grants
EAPAC are assisting companies which have applied for government grants from the Building and Construction Authority (BCA), Singapore Economic Development Board (EDB), Media Development Authority (MDA), SPRING Singapore and other government agencies.
EAPAC are offering forensic audit services to organisations or individuals who are seeking to prosecute a party for fraud, embezzlement or other financial claims. We will help you examine and evaluate financial information to be presented as an evidence in court.
Lucky Draw Audit
This is a type of audit undertaken to verify if the lucky draw procedure gives bettors an equal chance of being selected. EAPAC will be present during draw proceeding and we will check the terms and conditions to ensure compliance. We will also provide a draft of an audit report to CID.
Management Corporation Strata Title (MCST) Audit
EAPAC offer audit services for Management Corporation Strata Title (MCST) financial statements as required by Building Maintenance and Strata Management Act.
Why Choose EAPAC as your audit firm
- Our team of experts carry out a timely and efficient audit, avoiding areas which are neither material nor of high risk.
- We review risk and materiality in each area of the audit so that we focus on those areas most relevant to the substantiation of our eventual audit opinion.
- We comply with international auditing standards and we use tried and tested techniques.
- We adhere to Singapore’s regulations and requirements
- Our audits ensure smoother workflows and stronger collaboration. We will provide each business owner deeper insights and strategic advice.