Why you Need Professional Audit Firm in Singapore

Audit firm in Singapore

Auditing is a healthy business function as it helps demonstrate a healthy financial outlook of the unaudited records of a company and aids the financial decision-making process. The audit firm in Singapore or individual that’s engaged in the task should be equipped with the required level of knowledge and expertise that can aid the execution of the tasks. Engaging in auditing helps with the elimination of errors and inconsistencies that could be existing within the business process and with the potential of leading to fraud. 

Taking time to understand auditing procedures is quite important for company heads and business owners in Singapore. It’s a statutory requirement that Singapore companies get to carry out periodical audits on their financial records as per the Singapore Companies Act. The processes of auditing start with choosing a reputable audit firm in Singapore. There are a number of factors that should be taken into consideration so as to ensure that you engage a reputable firm.

Auditing is normally conducted as a way of ensuring the accuracy of the financial statements. In compliance with the law, companies that are incorporated in Singapore are required to appoint an auditor in Singapore within three months of incorporation. Auditing of the financial records should only be undertaken by a professional auditor in Singapore. Statutory audit is mandatory for all private companies in Singapore and should be done at least once a year at the end of their financial year. 

There are, however, companies that are exempted from audit, and having knowledge of such can help. These are small companies and those that meet the criteria set for small companies by the Accounting and Corporate Regulatory Authority in Singapore. Dormant companies that have not been in operation for some time are also exempted from audit. 

Here are some of the reasons why you need professional audit service in Singapore;

Compliance to Singapore Companies Act

One of the key reasons for engaging an audit firm in Singapore is as a way of observing compliance with the Singapore Companies Act as it’s the cornerstone of the regulatory business environment in Singapore. The act has established various stipulations in regard to statutory audits for companies in Singapore. According to the Companies Act, the auditing procedures include;

  • It states how the auditors should be compensated for their services
  • How you can change the auditors in case of dismissal or resignation
  • How regularly auditing should be undertaken
  • Companies that are subject to statutory audit. 

It takes working with a reputable auditor in Singapore if all compliance is to be observed. 

Accurate Financial Statements

The credibility and accuracy of the audited financial statements highly depend on the audit firm in Singapore involved in the task. Financial statements consist of a number of reports such as the balance sheet, cash flow statement, income statement, and others. These statements are relied on by various organizations when considering engaging with the company. 

Working with a professional audit firm in Singapore brings that assurance that the records are accurate and can be relied on when making financial decisions.

Originally published by onestop-ca.com

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