AUDIT & ASSURANCE SERVICES

Statutory Audit

Non-Statutory Audit

Lucky Draw Audit

Variable Capital Company Audit

Payment Service Act Related Audit

Legal Profession Accountant’s Report

Perform Agreed-Upon Procedures

Review Historical Financial Statements

Audit Guides

Statutory Audit

The directors of every Singapore Company must appoint an auditor within 3 months from the date of incorporation unless the company is audit exempted.

Financial years beginning on or before 01 Jul 2015. Your company qualifies for audit exemption if:

  • Annual revenue not more than S$5 million
  • Total number of shareholders not more than 20.
  • All shareholders must be individuals. I.e. shareholder cannot be another company.

Financial years beginning on or after 01 Jul 2015. Small Company Concept for Audit Exemption:

Qualification Criteria

Currently, a company is exempted from having its accounts audited if it is an exempt private company with annual revenue of $5 million or less. This approach is being replaced by a new small company concept which will determine exemption from statutory audit. Notably, a company no longer needs to be an exempt private company to be exempted from audit.

A company qualifies as a small company if:

(a) it is a private company in the financial year in question; and

(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:

(i) total annual revenue ≤ $10m;

(ii) total assets ≤ $10m;

(iii) no. of employees ≤ 50.

For a company which is part of a group:

a) the company must qualify as a small company; and

(b) entire group must be a “small group”

to qualify to the audit exemption.

For a group to be a small group:

It must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.

Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:

(a) it ceases to be a private company at any time during a financial year; or

(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Non-Statutory Audit

Non Statutory audits for non-corporate entities such as partnerships, clubs, associations and charitable bodies and internal audits can drive better management control, proactive risk and compliance management, good corporate governance and continuous process improvements.

Lucky Draw Audit

In pursuance of Singapore’s Gambling Control Act (Trade and Other Promotional Games and Lotteries- Class Licence), the scope of work for the lucky draw audit includes verifying the procedures of the draw to ensure that all participants have an equal chance of winning. Additionally, the auditor will witness the draw proceedings, verify the winners, and confirm that they meet the terms and conditions of the draw.

The “scrutineer” = Public Accountant, who will prepare an audited statement as per the following: 

Statement by Auditor to include:

  1. Auditor witnessed the draw is conducted according to the details of the draw. 
  2. Client demonstrated compliance with Gambling Control Act Para 11 = Client published the winning results + kept records of the lucky draw proceedings and distributed the prizes to the winners.
  3. Client demonstrated compliance with Gambling Control Act Para 12 = Client published the results in a timely manner.

Variable Capital Company Audit

A Variable Capital Company (VCC) is a type of investment fund structure that was introduced in Singapore in 2018. VCCs are regulated by the Monetary Authority of Singapore (MAS) and offer several benefits, including operational flexibility and tax efficiency. VCCs are usually awarded the Enhanced-Tier Fund Tax Incentive Scheme so that its investment income is tax exempted with conditions.

We will audit in accordance to Variable Capital Companies Act 2018 (the “Act”) and the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Investment Funds” issued by the Institute of Singapore Chartered Accountants (“RAP 7”).

Payment Service Act related Audit

Companies in Remittance, Money Changer, Payment wallet, Cryptocurrency trading/exchange will fall under the Payment Service Act. For a fair and competitive quotation, do share the accounts for the relevant period (Profit & Loss and Balance Sheet); and the prior year audited financial report (if available).

Legal Profession Accountant’s Report

Accountant’s Report: An examination in compliance with section 73 of the Legal Profession Act (Cap. 161) (Act) and the Legal Profession (Accountant’s Report) Rules for the purpose of giving an Accountant’s Report.

The aim of the Solicitors’ Accounts Rules (SAR) is to ensure the fair treatment of client’s money and to maintain adequate book-keeping and recording systems. Compliance with the SAR will ensure that a solicitor separates client’s moneys from his own. While conveyancing money is excluded from the definition of client’s money as it is covered by a separate set of Rules, the same principles and broad considerations would continue to apply to conveyancing money held on behalf of clients.

The overarching principles of the SAR are that client’s money:

  1. Is kept safe and separate from money belonging to the solicitor or to his law practice;
  2. Must be deposited in a bank account or account with an approved finance company and identifiable as a client account;
  3. Is used for that client’s matter only;
  4. Must be properly accounted for in accounting records and reconciled with no shortfalls.

Engagements to Perform Agreed-Upon Procedures (SSRS 4400)

These SSRS 4400 engagements typically involves:

  • Cost/completion/revenue verification required by various government related entities such as IMDA, EDB, HBD, Town councils.
  • Gross Turnover Audit.
  • Compliance with contracts.
  • Royalty & franchising related calculations.
Gross Turnover Audit

Gross Turnover Audit or commonly known as sales audit is an examination of a company’s revenue or sales figures to ensure that they have been accurately reported. The purpose of the audit is to identify any discrepancies or errors in the financial records.
During a gross turnover audit, the auditor will review the company’s sales records, invoices, contracts, and other relevant documents to verify the accuracy of the reported revenue. They will also review the company’s internal controls and accounting policies to ensure that they are adequate and effective in preventing fraud and errors.
Summarise your daily sales records in months and share it with us. We will then share the detailed sampling plan with you.

Singapore Tourism Board Grant Audit

Administered by Singapore Tourism Board, there are 9 Funds under Tourism Development Fund (TDF)

  1. Tourism Product Development Fund (TPDF)
  2. Experience Step Up Fund (ESF)
  3. Cruise Development Fund (CDF)
  4. Leisure Events Fund (LEF)
  5. Business Events in Singapore (BEiS)
  6. Kickstart Fund (KF)
  7. Training Industry Professionals in Tourism (TIP-iT)
  8. Business Improvement Fund (BIF)
  9. Local Enterprise & Association Development (LEAD)

Under these grants, all the Project Revenue/Expenditure transactions will be audited.
Please share the STB’s Letter of Offer (including annexes) so that we can offer our quotation.

Engagements to Review Historical Financial Statements (SSRE 2400)

Subjected to conditions in the Travel Agents Act. Travel Agent Licensee for the financial year ended after 01 Mar 2020, may submit a copy of the licensee’s financial statements certified by an independent auditor in accordance with the Singapore Standard on Review Engagements (SSRE) 2400 (Revised): Engagements to Review Historical Financial Statements instead of the copy of the licensee’s audited statement of accounts. SSRE 2400 Audits are less expensive than a statutory audit.
Send us your accounts for a quotation.

Audit Guides

What to share for quotation of statutory Audit?

For a fair and competitive quotation, do share the accounts for the relevant period (Profit & Loss and Balance Sheet); and the prior year audited financial report (if available)

Appointment of the Company’s 1st Auditor Procedure
  • Company to issue letter of Nomination to Edwin Tay & Co. LLP. Download template via this Link.
  • Edwin Tay & Co. LLP will follow up and issue a letter of Consent to Act to your Company.
  • Your Company Secretary will process the Director’s resolution and appoint Edwin Tay & Co. LLP as your Auditor with ACRA.
Appointment of Auditor Procedure
  • Company to issue letter of Nomination to Edwin Tay & Co. LLP. Download template via this Link.
  • Edwin Tay & Co. LLP will then seek Professional Clearance from the previous Auditor (if any).
  • Edwin Tay & Co. LLP will follow up and issue a letter of Consent to Act to your Company upon professional clearance obtained from the previous Auditor.
  • Your Company Secretary will process the EGM and Director’s resolution and appoint Edwin Tay & Co. LLP as your Auditor with ACRA.
General documents to prepare for a Statutory Audit

For Statutory Financial Audit, the Auditor will request the following when applicable:

  • Accounts to be prepared in accordance to IFRS or SFRS
  • General ledger, up to date through the end of the period covered by the audit
  • Profit & Loss + Balance Sheet
  • All bank statements, accounts receivable, inventory and other subsidiary accounts reconciled to the general ledger
  • Schedule of aged accounts receivable
  • Schedule of priced inventories
  • Schedule of fixed assets and depreciation for
  • Schedule of prepaid expenses
  • Schedules of loans, trade payables and other liabilities reconciled with the lenders’ and creditors’ records
  • Schedules of all other accrued liabilities
  • Lease agreements, loans and notes of all lenders
  • Work in progress (WIP) schedules for Long term project accounting
  • Allow inspection of the Secretary file.

Other supporting documents, such as cancelled cheques, bank statements, vendors’ invoices, sales agreements, insurance policies.

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