Whether you’re running an SME or a growing enterprise in Singapore, choosing the right audit firm is one of the most important decisions for your business’s financial health and regulatory compliance. An experienced and trustworthy audit firm can help you meet your statutory obligations, build credibility with stakeholders, and identify financial risks early.
But with so many firms offering audit services in Singapore, how do you decide which one is right for your company?
This comprehensive guide will walk you through what to look for, the questions to ask, and the common pitfalls to avoid when selecting the right audit partner in Singapore.
Why Choosing the Right Audit Firm Matters
An audit isn’t just a box-ticking compliance exercise — it’s a deep dive into your company’s financial systems, controls, and reporting. A good audit firm:
- Ensures your financial statements comply with Singapore Financial Reporting Standards (SFRS)
- Helps you stay compliant with ACRA and IRAS regulations
- Uncovers inefficiencies, misstatements, and potential fraud
- Enhances your credibility with banks, investors, and shareholders
- Advises on improvements in internal controls and business operations
Choosing the wrong audit firm, on the other hand, can result in poor-quality audits, compliance issues, late submissions, and even reputational damage.
Step 1: Understand Your Company’s Audit Requirements
Before shortlisting audit firms, you should determine whether your company is required by law to undergo an audit.
In Singapore, private companies that qualify as small companies are exempted from statutory audits. To qualify, you must meet at least 2 of the 3 criteria:
- Total annual revenue ≤ S$10 million
- Total assets ≤ S$10 million
- Number of employees ≤ 50
If your company does not qualify for exemption or is part of a larger group that fails the group exemption test, you must appoint an ACRA-approved auditor and submit audited financial statements annually.
Even if your company is exempt, you may still opt for a voluntary audit to improve governance and credibility.
Step 2: Look for a Firm That Is ACRA-Approved
In Singapore, only public accountants registered with ACRA and licensed audit firms can carry out statutory audits. This is a non-negotiable legal requirement.
Always verify that the firm or auditor is on ACRA’s official register. Working with a non-registered party may invalidate your audit and expose you to penalties.
Step 3: Assess Their Industry Experience
Not all businesses are the same — and neither are audit engagements. A firm that understands your industry is better equipped to assess your risk areas, identify common pitfalls, and provide meaningful insights.
Ask the audit firm:
- Have you audited companies in my industry before?
- Are you familiar with industry-specific compliance or reporting standards?
- Can you share examples of similar clients you’ve worked with?
If you’re in a niche sector like construction, tech, retail, F&B, or manufacturing, it’s critical to choose a firm with relevant experience.
Step 4: Evaluate the Size and Resources of the Firm
Are you a startup, a mid-sized company, or a growing regional business? The size and complexity of your operations should match the capabilities of the audit firm.
Larger firms may have deeper resources but could come with higher fees and less personalized service. Smaller boutique firms, on the other hand, often offer:
- Direct access to senior auditors
- Faster turnaround times
- Customized attention to your business
A mid-sized firm like Koh & Lim Audit PAC, for example, balances professionalism with personal attention, making them ideal for SMEs and growing companies in Singapore.
Step 5: Consider the Quality of Communication
A good auditor is not just a number-cruncher — they’re also a communicator and an advisor.
Pay attention to:
- How responsive is the firm to your enquiries?
- Do they explain technical terms in ways you understand?
- Are they proactive in advising you on potential issues?
You want an audit firm that treats your concerns seriously, responds promptly, and keeps communication clear and professional throughout the engagement.
Step 6: Check for Transparency in Fees
Audit fees can vary depending on the size, complexity, and condition of your financial records. However, the firm should be transparent about their pricing model and what’s included.
Ask:
- What are your standard audit fees for a company of my size?
- Are there additional charges for consultations or meetings?
- What happens if additional work is required?
Avoid firms that quote extremely low fees without clarifying their scope — this could lead to hidden costs or rushed audits.
Step 7: Review Client Testimonials and Reputation
A reputable audit firm will have testimonials or case studies that show their track record. You can also check online reviews, LinkedIn profiles, or referrals from your network.
Look out for:
- Positive feedback on professionalism and reliability
- Long-term client relationships
- Referrals from trusted accountants or business advisors
A firm that comes recommended and has a solid reputation is more likely to deliver quality work.
Step 8: Confirm Value-Added Services
Beyond statutory audits, some firms offer additional services that can benefit your business, such as:
- Internal audits
- Risk advisory
- Tax planning
- Corporate secretarial services
- Financial due diligence for mergers or acquisitions
Working with a multi-disciplinary firm can streamline your compliance efforts and offer convenience if you require multiple professional services under one roof.
Red Flags to Watch Out For
When choosing an audit firm, steer clear of the following warning signs:
- Lack of ACRA registration
- Unrealistically low fees (may indicate low quality or inexperience)
- Slow or unclear communication
- No clear engagement letter or audit plan
- Frequent staff turnover (affects consistency)
Always trust your instincts. If a firm seems disorganized, evasive, or overly pushy, it’s best to explore other options.
Why Choose Koh & Lim Audit PAC?
At Koh & Lim Audit PAC, we understand the challenges faced by Singapore SMEs and growing businesses. As a trusted ACRA-registered audit firm, we offer:
✅ Statutory audits tailored to your industry and business needs
✅ Transparent pricing with no hidden fees
✅ Clear and responsive communication
✅ Value-added insights into business and financial processes
✅ Friendly, experienced professionals who walk the journey with you
Whether you’re fulfilling a compliance requirement or seeking professional assurance to grow your business, we’re here to help.
Final Thoughts
Choosing the right audit firm in Singapore is more than just ticking a legal checkbox — it’s about finding a reliable partner to help your business stay compliant, transparent, and financially sound.
Take the time to assess your needs, do your research, and work with a firm that offers not just audit expertise, but also genuine business understanding.
If you’re ready to explore a trustworthy audit partnership, contact Koh & Lim Audit PAC today at +65 98638665 or email Tommyksh@kohlimaudit.sg for a no-obligation consultation.