SSA 210 Terms of Audit Engagements - Singapore

SSA 210 Terms of Audit Engagements - Singapore | Bestar

SSA 210 Terms of Audit Engagements - Singapore

Example of an Audit Engagement Letter

To the Board of Directors or the appropriate representative of senior management:

Dear Sirs

We hereby consent pursuant to … (e.g. Section 10 of the Companies Act, Cap. 50) … to act as statutory auditors of your … (e.g. company).

We now set out our understanding of the terms of this engagement. Our audit will be made in accordance with the requirements of … (e.g. Section 207 of the Companies Act, Cap. 50 in the case of companies) with the objective of expressing an opinion of the accounts.

We will conduct our audit in accordance with Singapore Standards on Auditing (SSAs). Those SSAs require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

Because of the test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, there is an unavoidable risk that even some material misstatements may remain undiscovered. Accordingly, our audit should not be relied on to disclose fraud, defalcations or other irregularities. However, if they exist, their disclosure may result from the audit tests we undertake.

In addition to our report on the financial statements, we expect to provide you with a separate letter concerning any material weaknesses in accounting and internal control systems which come to our notice.

We remind you that the Companies Act provides that the responsibility for the preparation of financial statements including adequate disclosure is that of the directors/management. This includes the maintenance of adequate accounting records and internal controls, the selection and application of accounting policies, and the safeguarding of the assets of the company. As part of our audit process, we will request from the directors/management written confirmation concerning representations made to us in connection with the audit.

The Companies Act provides that we shall have a right of access at all times to the accounting and other records including registers of the company, and that we are entitled to such information and explanations as we desire for the purposes of our audit. We look forward to full cooperation with your staff in this connection. Any accounting or other services which we may provide from time to time at your request, are distinct from our functions as auditors.

Our fees, which may be billed as work progresses, are based on the time required by the individuals assigned to the engagement plus direct out-of-pocket expenses. Individual hourly rates vary according to the degree of responsibility involved and the experience and skill required.

This letter will be effective for future years unless it is terminated, amended or superseded. 7 SSA 210 8

Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the arrangements for our audit of the financial statements.

Yours faithfully

XYZ

Partner

Bestar Assurance PAC

How Bestar Assurance PAC can Help Audit - Singapore

SSA 210 Terms of Audit Engagements - Singapore

Bestar Assurance PAC, as an accounting and audit firm in Singapore, provides a range of audit and assurance services designed to help businesses meet statutory requirements, enhance financial reliability, and improve internal controls.

Here is a breakdown of how Bestar Assurance PAC can help with audit services in Singapore:

1. Statutory Audit Services

• Compliance: They conduct mandatory annual audits to ensure a company's financial statements comply with the Singapore Companies Act and the Singapore Financial Reporting Standards (SFRS). This is crucial for meeting regulatory requirements from bodies like ACRA (Accounting and Corporate Regulatory Authority).

  
  

• Financial Assurance: The independent audit enhances the reliability and integrity of the financial statements for investors, creditors, and other stakeholders, fostering trust in the reported information.

  
  

• Expertise: They utilize their knowledge of accounting principles, business systems, processes, and controls to provide an objective and incisive view of the company's financial health.

  
  

2. Other Assurance and Attestation Services

Beyond the compulsory statutory audit, Bestar Assurance PAC offers specialized assurance services:

• Internal Audit: Assessing and improving an organization's internal controls, risk management, and governance processes to boost operational efficiency and prevent fraud.

  
  

• Compliance Audits: Ensuring adherence to specific regulations, such as those required by the Monetary Authority of Singapore (MAS) or other government agencies.

  
  

• Agreed-Upon Procedures (AUP): Performing specific, customised audit procedures on particular financial or non-financial information as requested by the client.

  
  

• Contractual Compliance Audits and Certifications in support of transactions (e.g., mergers and acquisitions).

  
  

3. Business Benefits

Engaging Bestar Assurance PAC for audit services can provide several benefits to a business:

• Risk Mitigation: Their audit process often identifies critical components, control weaknesses, and risk areas, allowing management to take corrective action.

  
  

• Enhanced Credibility: Audited accounts are generally viewed as more credible, which can be essential for securing bank loans, attracting investors, or participating in tenders for projects.

  
  

• Advisory Insights: The audit process often yields valuable spin-off benefits, as auditors may offer advice on business structure, operations, and updates on new FRS or tax matters.

  
  

• Tailored Solutions: They aim to provide high-quality auditor services tailored to the specific needs of small, medium, and large-scale enterprises.

  
  

In short, Bestar Assurance PAC assists by providing the legal stability and corporate compliance through audits that are required to operate and grow a business effectively in the Singapore regulatory environment.

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