Audit & Assurance - Singapore

Audit & Assurance - Singapore | Bestar

Statutory Audit & Assurance Services Singapore: Essential Compliance Guide for 2025/2026

The audit landscape in Singapore is defined by the Accounting and Corporate Regulatory Authority (ACRA) and the rigorous demands of the global economy. For business owners, understanding whether your company requires a statutory audit and which assurance services deliver the most value is crucial for compliance and strategic growth.

I. Decoding Singapore’s Statutory Audit Requirements

Every Singapore-incorporated company is required to have its financial statements audited annually, in accordance with the Companies Act 1967 and the Singapore Financial Reporting Standards (SFRS)—unless it qualifies for a specific exemption.

The Small Company Audit Exemption Criteria

The most common exemption is the "Small Company" criteria, which aims to reduce regulatory burden and compliance costs for qualifying businesses. A company is exempt from the statutory audit if it is a private company and meets at least two out of the three following criteria for the immediate past two consecutive financial years (FYs):

Criterion	Threshold (Must be ≤)
Total Annual Revenue	S$10 million
Total Gross Assets	S$10 million
Number of Employees	50

Crucial Note: If your company belongs to a corporate group, the entire group must qualify as a "Small Group" (meeting two of the three criteria on a consolidated basis for the past two consecutive FYs) for the company to retain the audit exemption.

II. Beyond Compliance: The Spectrum of Assurance Services

While a statutory audit focuses on giving an opinion on historical financial statements, modern assurance services provide forward-looking value to stakeholders.

1. Internal Audit and Controls Review

For non-listed companies and growing SMEs, internal audit services are invaluable for risk management and operational efficiency. A robust internal audit assesses:

• Effectiveness of Internal Controls: Identifying weak points in processes (e.g., procurement, inventory, revenue recognition) that could lead to financial errors or fraud.

  
  

• Compliance: Ensuring adherence to internal policies and relevant local laws.

  
  

• Operational Efficiency: Recommending improvements to streamline processes and reduce costs.

2. Specialised Audit and Attestation Engagements

Professional audit firms in Singapore also provide essential non-statutory assurance for specific needs:

• Agreed-Upon Procedures (AUP): Performing specific, agreed-upon checks on particular financial or non-financial data (e.g., verification of claims, grants, or gross turnover for tenancy agreements).

  
  

• Grant Claims Audits: Independent verification of expenditure and claims required by government agencies like EDB or ESG Singapore.

  
  

• Due Diligence Review: Providing assurance on financial records during mergers, acquisitions, or divestitures.

  
  

III. Key Audit Trends Transforming the Singapore Landscape (2025)

The audit profession is undergoing rapid change, driven by technology and shifting regulatory focus. Singapore businesses must prepare for these key trends:

1. Digital Transformation and AI in Audit

Auditors are now leveraging Artificial Intelligence (AI) and Data Analytics (DA) to move towards a real-time auditing model. This shift allows for:

• Continuous Monitoring: Faster identification of anomalies and suspicious transactions throughout the year, not just at year-end.

• Deeper Insights: Analysing vast datasets to provide richer insights into business risk and performance, moving beyond simple compliance checks.

  
  

2. The Rise of ESG and Sustainability Assurance

As Singapore advances its green agenda, reporting on Environmental, Social, and Governance (ESG) factors is becoming mandatory for more companies, particularly those listed on the SGX.

• Assurance Need: Independent assurance over ESG metrics (e.g., carbon emissions, supply chain ethics) is essential to build stakeholder trust and prevent 'greenwashing.' Reputable Audit Firms in Singapore are now building expertise to verify this non-financial data with the same rigour as financial data.

3. Heightened Focus on Cybersecurity and Fraud

With increased digitalisation, cybersecurity and the risk of sophisticated, AI-driven fraud are top priorities for ACRA. Audit committees must now focus on IT governance, data privacy, and digital risk management as core components of their overall assurance strategy.

IV. Selecting the Right Audit Partner in Singapore

Choosing the right public accountant is a crucial decision that goes beyond cost.

1. ACRA Registration: Ensure the firm and its Public Accountant (PA) are legally registered with ACRA and subject to its Practice Monitoring Programme (PMP).

   
   

2. Industry Specialisation: Select a firm with proven experience and expertise in your specific sector (e.g., Tech Startups, Fund Management, Trading).

   
   

3. Technology Adoption: A firm that uses modern, cloud-based auditing tools can execute the audit more efficiently, reducing the burden on your internal team.

   
   

4. Value-Added Perspective: Look for an audit firm that not only provides compliance but also offers constructive suggestions on improving internal controls and business operations.

   
   

How Bestar Can Help with Audit & Assurance in Singapore

Choosing an audit firm is a critical business decision. Bestar Assurance PAC (their licensed entity) offers a comprehensive suite of audit and assurance services designed to ensure strict compliance with ACRA requirements while providing strategic, value-added insights for business growth.

Here is a breakdown of how Bestar can assist with your company's audit and assurance needs in Singapore.

I. Statutory Compliance: Financial Statement Audit

Bestar's primary function as an ACRA-registered Public Accounting Corporation (PAC) is to conduct the mandatory statutory audit for companies that do not qualify for the small company audit exemption.

Key Services for Compliance

• Statutory Audit: Providing an independent opinion on whether your financial statements comply with the Singapore Financial Reporting Standards (SFRS) and present a "true and fair view" of the company's financial position.

  
  

• ACRA & IRAS Compliance: Ensuring all audit and financial filing deadlines (such as Annual Returns and ECI) are met in line with the Companies Act.

  
  

• Group Financial Audits: Specialising in managing the complexity of consolidated accounts for corporate groups, including those with subsidiaries overseas.

  
  

• Risk-Based Methodology: Using a risk-focused approach that targets key areas of potential misstatement, making the audit process more efficient and relevant.

II. Value-Added Assurance & Advisory

Moving beyond the basic compliance check, Bestar offers specialised assurance and advisory services that help management enhance control, mitigate risk, and make informed decisions.

1. Internal Audit and Controls Review

For growing businesses, internal audit is crucial for operational health. Bestar provides:

• Financial Assurance: Assessing and providing recommendations on your accounting systems and controls to prevent fraud and financial error.

  
  

• Operational Assurance: Reviewing business processes (e.g., procurement, inventory, IT) to identify and eliminate bottlenecks, improving overall efficiency.

  
  

• Regulatory Compliance: Establishing and testing internal controls to ensure ongoing adherence to specific regulations relevant to your industry (e.g., MAS regulations for Fund Management Companies).

2. Specialised Assurance for Financial Institutions

Bestar possesses specific expertise in the highly regulated financial services sector in Singapore, including:

• Audits for Fund Management Companies (FMCs): Providing the required independent annual audit for both Licensed FMCs (LFMCs) and Registered FMCs (RFMCs), ensuring compliance with MAS guidelines.

  
  

• MAS Regulatory Returns: Assisting with the preparation and submission of periodic regulatory returns and the accompanying Auditor's Report (like Form 25B for RFMCs) to the Monetary Authority of Singapore (MAS).

3. Attestation and Due Diligence

The firm provides independent verification on specific matters required by counterparties, regulators, or for internal decision-making:

• Grant Claims Audits: Certifying expenditure for government grant claims (e.g., from ESG Singapore or EDB).

  
  

• Mergers & Acquisitions (M&A): Conducting Due Diligence Reviews to verify the financial and operational health of a target company before a transaction.

  
  

• Agreed-Upon Procedures (AUP): Performing specific verification procedures on defined areas (e.g., turnover, compliance with a contract).

III. The Bestar Advantage: Integrated Business Support

Bestar's ability to offer a comprehensive range of professional services alongside audit and assurance makes them a highly efficient partner for businesses operating in Singapore.

Area of Support	How Bestar Integrates with Audit
Corporate Secretarial	Ensures company officers, statutory records, and annual filing deadlines are managed, reducing audit friction.
Tax Advisory	Provides tax planning advice before financial statements are finalised, ensuring full compliance and tax efficiency within the legal framework.
Accounting & Bookkeeping	Can handle the accurate preparation of financial records, streamlining the audit process and reducing audit fees.

By serving as a single, coordinated provider for compliance, accounting, and audit needs, Bestar aims to offer clients efficient, high-quality, and cost-effective services, allowing management to focus on core business strategies.

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