A Corporate Statutory Financial Audit in Singapore is a legal requirement for certain companies to have their financial statements audited by a public accountant registered with ACRA (Accounting and Corporate Regulatory Authority). The purpose is to ensure that the financial statements provide a true and fair view of the company’s financial health and are prepared in accordance with the Singapore Financial Reporting Standards (SFRS).
In this comprehensive guide, we explain everything you need to know about statutory audits for companies in Singapore — from regulatory requirements to benefits and how Koh & Lim Audit PAC can assist your business with professional, efficient, and compliant audit services.
What is a Statutory Financial Audit?
A statutory audit is an independent review of a company’s financial statements conducted by a licensed audit firm. It is called “statutory” because it is mandated by law under the Singapore Companies Act, Cap. 50.
The objective of a statutory audit is to ensure that the company’s financial statements:
- Comply with SFRS
- Are free from material misstatements
- Are reliable for decision-making by shareholders, investors, banks, and regulators
After completing the audit, the auditor issues an independent auditor’s report, which is filed with ACRA along with the company’s annual return.
Who Needs a Statutory Audit in Singapore?
Not every company in Singapore is required to undergo a statutory audit. According to Section 205C of the Companies Act, only companies that do not qualify as a “small company” must appoint an auditor and have their accounts audited.
A company qualifies as a small company if it meets at least 2 out of 3 of the following criteria for the past two financial years:
✅ Total annual revenue ≤ S$10 million
✅ Total assets ≤ S$10 million
✅ Number of employees ≤ 50
If a company is part of a group, the entire group must also meet the “small group” criteria for the audit exemption to apply.
If your company does not meet these criteria, a statutory financial audit is mandatory.
Types of Companies That Typically Require a Statutory Audit
- Medium to large private limited companies
- Subsidiaries of foreign companies
- Listed and public companies
- Companies applying for government tenders
- Businesses applying for financing from banks or investors
- Companies with complex ownership structures
Even if your company qualifies for an exemption, many businesses voluntarily undergo audits to enhance transparency and boost credibility.
What Does a Statutory Audit Involve?
A corporate statutory audit follows a structured process that includes:
1. Planning & Risk Assessment
- Understanding your company’s business, industry, and internal controls
- Identifying areas of audit risk
2. Review of Financial Statements
- Examining the balance sheet, income statement, and cash flow statements
- Assessing accounting policies and estimates
3. Testing Transactions
- Verifying sales, purchases, expenses, and payroll
- Confirming bank balances and third-party receivables or payables
4. Internal Control Assessment
- Evaluating financial processes and controls
- Highlighting weaknesses or areas of improvement
5. Audit Report Issuance
- Delivering an Independent Auditor’s Report stating whether the financial statements are presented fairly
At Koh & Lim Audit PAC, our audit process is efficient, transparent, and tailored to your business needs.
Why is a Corporate Statutory Audit Important?
✅ Legal Compliance
The Companies Act requires non-exempt companies to appoint an auditor within 3 months of incorporation and submit audited financial statements annually.
✅ Financial Accuracy
An audit ensures your financial statements are accurate and reflect the true performance of your business.
✅ Stakeholder Confidence
Audited financial statements boost trust among investors, banks, shareholders, and customers.
✅ Risk Management
Auditors can help detect errors, fraud, or inefficiencies in your accounting processes.
✅ Support for Expansion
If you’re planning to raise capital, secure loans, or enter into partnerships, audited accounts can strengthen your position.
Common Areas of Focus in a Singapore Statutory Audit
- Revenue recognition and sales completeness
- Inventory and asset valuations
- Accounts receivable and bad debt provisions
- Compliance with local tax laws (IRAS)
- Related party transactions
- Proper recording of liabilities and provisions
- Accuracy of employee compensation and CPF
When Must the Audit Be Completed?
The audited financial statements must be ready before the company’s Annual General Meeting (AGM), which must be held within 6 months after the financial year-end.
Additionally, the audited statements must be filed with ACRA together with the Annual Return (AR) within 7 months after the financial year-end.
Timely audit completion is crucial to avoid penalties and maintain good standing with regulators.
Why Choose Koh & Lim Audit PAC?
At Koh & Lim Audit PAC, we are committed to delivering reliable, timely, and value-added audit services for companies across all sectors in Singapore.
🔎 Registered and Licensed Audit Firm
We are a Public Accounting Corporation (PAC) registered with ACRA, and fully authorized to carry out statutory audits.
👨💼 Professional and Experienced Auditors
Our team comprises qualified auditors with experience in industries including retail, logistics, F&B, construction, healthcare, technology, and more.
📊 Tailored Audit Approach
We understand that each business is unique. Our risk-based, practical approach minimizes disruption while ensuring full compliance.
🕒 Timely Delivery
We prioritize meeting your deadlines for AGM and ACRA filing with prompt turnaround times.
💰 Transparent and Competitive Pricing
We offer fixed-fee audit packages with no hidden costs, so you can plan your budget with confidence.
Our Statutory Audit Services Include:
- Financial statement audit
- Group/consolidated audit
- Special purpose audit (e.g., grant audit, compliance audit)
- Internal control review and advisory
- Statutory audit for dormant or investment holding companies