Statutory Auditor in Singapore: A Guide to Compliance & Audit Exemptions (2026)
- a22162
- Sep 18, 2023
- 8 min read
Updated: Dec 14
Singapore Statutory Auditor Guide
In Singapore, a Statutory Auditor is a public accountant or accounting firm registered with the Accounting and Corporate Regulatory Authority (ACRA). Under the Singapore Companies Act, every company must appoint an auditor within three months of incorporation unless they qualify for specific exemptions.
Below is an article designed to help businesses understand these requirements.
Statutory Auditor in Singapore: A Guide to Compliance & Audit Exemptions (2026)
Navigating the regulatory landscape in Singapore requires a clear understanding of your company's financial obligations. One of the most critical roles in this ecosystem is the Statutory Auditor. Whether you are a startup or an established multinational, ensuring your financial statements are transparent and compliant is non-negotiable for maintaining your standing with ACRA.
What is a Statutory Auditor?
A statutory auditor is an independent third party—specifically a public accountant or an accounting firm registered with ACRA—tasked with examining a company’s financial records.
The primary goal of a statutory audit in Singapore is to provide an unbiased opinion on whether the company’s financial statements provide a "true and fair" view of its financial position, in accordance with the Singapore Financial Reporting Standards (SFRS).
Does Your Company Need a Statutory Audit?
Under the Singapore Companies Act, all companies are required to appoint an auditor within three months of incorporation.7 However, many Small and Medium Enterprises (SMEs) may be exempt.
The "Small Company" Concept
To qualify for an audit exemption in 2025, a company must be a private company and meet at least two out of the three following criteria for the past two consecutive financial years:
Criteria | Threshold |
Total Annual Revenue | ≤ S$10 million |
Total Assets | ≤ S$10 million |
Number of Employees | ≤ 50 |
Note: If your company is part of a group, the entire group must qualify as a "small group" (meeting the same thresholds on a consolidated basis) for the exemption to apply to individual subsidiaries.
The Role & Responsibilities of a Statutory Auditor
A statutory auditor does more than just "check the numbers." Their role involves:
Compliance Verification: Ensuring the company adheres to the Companies Act and SFRS.
Risk Assessment: Identifying areas of material misstatement due to error or fraud.
Internal Controls: Reviewing the effectiveness of the company's internal financial reporting systems.
Reporting: Issuing an Independent Auditor’s Report, which is presented to shareholders at the Annual General Meeting (AGM) and filed with ACRA.
Benefits of Engaging a Professional Auditor
Even if your company qualifies for an exemption, many businesses choose to undergo a voluntary audit. Here’s why:
Stakeholder Confidence: Audited accounts are often required by banks for loan approvals and by investors during due diligence.
Fraud Deterrence: The presence of a statutory auditor acts as a safeguard against internal financial mismanagement.
Process Improvement: Auditors often provide a "Management Letter" highlighting weaknesses in your accounting processes and suggesting improvements.
Penalties for Non-Compliance
Failure to appoint an auditor (when required) or late filing of audited financial statements can lead to:
Fines: ACRA may impose composition fines of up to S$600 per breach.
Prosecution: Continued default can lead to court summons for company directors.
Reputational Damage: Non-compliance is public record on ACRA’s BizFile+, which can affect your credit rating and business partnerships.
Checklist for Upcoming Statutory Audit
Preparing for a statutory audit in Singapore can be a complex process, but staying organized is the best way to ensure it runs smoothly and remains cost-effective. Below is a comprehensive checklist for your 2025 audit, categorized by the key areas an auditor will examine.
1. Core Financial Statements & General Records
These are the foundation of your audit. Ensure these are finalized according to Singapore Financial Reporting Standards (SFRS).
[ ] Trial Balance & General Ledger: Exported for the full financial year.
[ ] Management Accounts: Profit & Loss Statement, Balance Sheet, and Cash Flow Statement.
[ ] Fixed Asset Register: A detailed list showing purchase dates, costs, and depreciation schedules.
[ ] Prior Year’s Audited Reports: Including any "Management Letters" issued by the previous auditor.
2. Bank & Cash Reconciliations
Auditors prioritize cash because it is high-risk.
[ ] Bank Statements: Full sets for all corporate accounts for the entire year.
[ ] Bank Reconciliation Statements: Ensuring your internal ledger matches your bank balances at year-end.
[ ] Petty Cash Records: Vouchers and receipts for all cash transactions.
[ ] Bank Confirmation Letters: Request these from your bank early; they often take 2–3 weeks to process.
3. Accounts Receivable (AR) & Payable (AP)
[ ] Aging Reports: Detailed list of outstanding invoices from customers (AR) and to suppliers (AP).
[ ] Invoices & Purchase Orders: Random samples will be tested; ensure they are filed and easy to retrieve.
[ ] Credit Notes: Documentation for any returns or price adjustments.
[ ] Bad Debt Provisions: Justification for any debts you believe may be uncollectible.
4. Statutory & Corporate Secretarial Documents
The auditor must verify the legal structure and governance of the company.
[ ] BizFile+ Profile: A current copy of your company’s business profile from ACRA.
[ ] Board Meeting Minutes: Minutes of meetings held throughout the year.
[ ] Register of Members & Directors: Kept by your Company Secretary.
[ ] Significant Contracts: Lease agreements, loan documents, and major customer/vendor contracts.
5. Tax & Payroll Compliance
[ ] IRAS Correspondence: GST returns (if applicable), Corporate Tax filings (Form C/C-S), and any tax assessment notices.
[ ] Payroll Records: Monthly payslips and summaries.
[ ] CPF Contribution Statements: Proof of timely payments to the Central Provident Fund for employees.
[ ] IR8A Forms: Copies of the annual income declaration for employees.
6. Inventory (If Applicable)
[ ] Physical Stock-Take Records: Documentation from your year-end stock count.
[ ] Inventory Valuation Report: Breakdown of stock value (lower of cost or net realizable value).
Pro-Tip: The "Management Representation Letter"
At the end of the audit, your directors will be asked to sign a Management Representation Letter. This document confirms that the board takes full responsibility for the accuracy of the information provided to the auditor. Review this carefully with your auditor before signing.
Specific Timeline for Audit Preparation Based on 31 December Financial Year End (FYE) Date
In Singapore, most companies have an FYE of 31 December, but yours might be different (e.g., 31 March or 30 June).
Since your Financial Year End (FYE) is 31 December, your statutory deadlines in Singapore are typically fixed: you must hold your Annual General Meeting (AGM) within 6 months (by June 30) and file your Annual Returns within 7 months (by July 30).
Here is a specific, pro-active timeline to ensure you meet all ACRA and IRAS requirements without last-minute stress.
Phase 1: Pre-Audit & Planning (November – December)
Goal: Set the stage and avoid administrative delays.
Late Nov: Confirm the appointment of your statutory auditor and sign the Engagement Letter.
Early Dec: Request a "PBC (Prepared by Client) List" from your auditor so you know exactly which schedules they need.
31 Dec: Physical Inventory Count. If you carry stock, you must perform a count on this day. Ensure the auditors are invited to observe if required.
Phase 2: Closing the Books (January – February)
Goal: Finalize the data for the auditors.
Mid-Jan: Send out Bank Confirmation requests. Banks often take 3–4 weeks to return these directly to the auditor.
End-Jan: Complete all reconciliations (Bank, GST, Trade Payables/Receivables).
Mid-Feb: Finalize the Trial Balance and draft the Unaudited Financial Statements.
Late Feb: Upload all requested documents to the auditor’s portal.
Phase 3: Fieldwork & Queries (March – April)
Goal: The actual audit process.
March: Auditors perform "Fieldwork" (either on-site or remotely). Designate a single point of contact in your finance team to handle their queries daily to keep momentum.
31 March: Deadline for ECI (Estimated Chargeable Income) filing with IRAS.
Mid-April: Review the Audit Adjustment List. These are changes the auditor proposes to your draft accounts.
Late April: Finalize the tax computation with your tax agent to include the tax provision in the accounts.
Phase 4: Finalization & Approval (May)
Goal: Getting signatures and board approval.
Early May: Review the Draft Audited Financial Statements and the Director's Statement.
Mid-May: Board of Directors meeting to formally approve the accounts.
Late May: Sign the Management Representation Letter and the finalized Audit Report.
Phase 5: Statutory Filing (June – July)
Goal: Compliance completion.
By 30 June: Annual General Meeting (AGM). You must present the audited accounts to shareholders.
By 30 June: Prepare the XBRL filing (if applicable).
By 30 July: File Annual Return with ACRA via BizFile+.
Critical Deadlines at a Glance
Task | Deadline |
Inventory Count | 31 December 2025 |
ECI Filing (IRAS) | 31 March 2026 |
Hold AGM | 30 June 2026 |
File Annual Return (ACRA) | 30 July 2026 |
Corporate Tax (Form C-S/C) | 30 November 2026 |
Conclusion
Appointing a Statutory Auditor in Singapore is a vital step in your corporate governance journey. By ensuring your company meets its audit requirements, you not only stay on the right side of the law but also build a foundation of financial integrity that attracts investors and partners.
Appointing Bestar: Your Partner for Statutory Audit in Singapore
Statutory Auditor in Singapore: A Guide to Compliance & Audit Exemptions (2026)
Under the Singapore Companies Act, every company must appoint a statutory auditor within three months of incorporation unless they meet the "small company" exemption criteria. Choosing the right firm—like Bestar—is more than a compliance check; it is a strategic move to ensure financial integrity and investor confidence.
Why Choose Bestar as Your Statutory Auditor?
Bestar is an ACRA-registered Public Accounting Corporation (PAC) that specializes in helping SMEs, MNCs, and Variable Capital Companies (VCCs) navigate the complexities of Singapore's regulatory framework.
1. Seamless ACRA & IRAS Compliance
Bestar ensures your financial statements are prepared in strict accordance with the Singapore Financial Reporting Standards (SFRS). This minimizes the risk of penalties and ensures a smooth submission of Annual Returns via BizFile+.
2. Next-Generation AI-Driven Audits
Bestar utilizes advanced digital tools to enhance audit accuracy. Instead of manual sampling, their digital audit capabilities can review 100% of transactions to identify trends, risks, and anomalies that traditional methods might miss.
3. Comprehensive Integrated Services
By appointing Bestar, you gain access to a holistic suite of services under one roof:
Tax Advisory: Coordination between audit and tax teams for maximum efficiency.
Corporate Secretarial: Managing the legal timeline for AGMs and ACRA filings.
XBRL Preparation: Expert conversion of financial statements into the mandatory electronic format.
How to Appoint Bestar: The Step-by-Step Process
Appointing a statutory auditor in Singapore involves a specific legal procedure. Bestar guides you through each stage:
Step 1: Request a Quotation
To provide an accurate quote, Bestar typically requires:
Your latest ACRA BizProfile.
The most recent Audited Financial Statements (for existing companies).
Your current Management Accounts (P&L and Balance Sheet).
Step 2: Formal Appointment
The Board of Directors must pass a resolution to appoint the auditor. If you are switching from another firm, Bestar will handle the Professional Courtesy clearance with your previous auditor to ensure a smooth transition.
Step 3: ACRA Notification
Once appointed, the company must notify the Registrar via BizFile+ within 14 days. Bestar’s corporate secretarial team can manage this filing on your behalf to ensure no deadlines are missed.
Audit Exemption Check (2025 Criteria)
Before appointing an auditor, Bestar can help you determine if you qualify for an exemption. A company is exempt if it meets two out of three of these criteria for two consecutive financial years:
Total Annual Revenue: ≤ S$10 million
Total Assets: ≤ S$10 million
Number of Employees: ≤ 50
Pro-Tip: Even if exempt, many companies choose a voluntary audit with Bestar to enhance their credibility when applying for bank loans or seeking venture capital.
Get Started with Bestar
With fees for statutory audits for small firms often starting from S$4,000, Bestar provides a cost-effective, high-quality solution for Singaporean businesses.
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