Previous Audit Exemption Criteria (before 1 July 2015)

A company incorporated under the Singapore Companies Act is subject to statutory audit in Singapore unless it meets the audit exemption criteria. Before 1 July 2015, Exempt Private Companies# (EPCs) with annual revenue of less than S$5 million are not required to have their accounts audited for financial year beginning on or after 1 June 2004.

#An EPC is a private limited company with no corporate shareholders and no more than 20 shareholders

New Audit Exemption Criteria (from 1 July 2015)

With the recent amendments to the Singapore Companies Act, a private company that used to require statutory audit may no longer need to do so. The revised audit exemption criteria introduces the concept of “small company” and “small group” classifications in determining if a company/group qualifies for audit exemption for a particular financial year (FY). The previous audit exemption criteria (before FY starting 1 July 2015) for EPCs no longer applies once the revised audit exemption criteria takes effect.

 

The revised criterion stipulates that a company qualifies as a small company and is exempted from statutory audit if it is a private company and meets at least 2 out of the 3 following criteria:

  • Total revenue ≤ S$10 million;
  • Total assets ≤ S$10 million;
  • Number of employees is ≤ 50

A small group is one that meets at least 2 out of the 3 quantitative criteria mentioned above on a consolidated basis for the last two consecutive financial years.

 

If your company qualifies for audit exemption, it will still need to prepare unaudited financial statement in accordance to the Companies Act and Singapore Financial Reporting Standards for the purpose of IRAS' filing requirements to file your tax returns. The format is similar to an audited financial statement except that you do not need an auditor to sign off the report.

We can help you prepare unaudited financial statements in accordance to IRAS' filing requirements, and file your tax returns if desired. We are in constant and close touch with the latest changes and developments in accounting standards, statutory requirements, tax and GST matters impacting businesses, which translates to the value-add we bring to our accounting assignments.