Audit and Assurance Services
Audited financial statements are required as part of the company financial reporting and compliance process for companies that do not qualify as a “small company”. Audited financial statements may also be required for certain licences or permits and by government department
Types of Audit and Assurance
- Statutory audit for companies and branches of foreign companies
- Audit as required by Building Maintenance and Strata Management Act. for Management Corporation Strata Title (MSCT)
- Audit of financial statement for societies, association and co-operatives
- Audit of retail sales and revenue reporting for lease or tenancy agreements
- Other kinds of audit report such as income verification for self employed persons
Audit exemption
Small company is exempt from auditing their financial statements.
A company qualified as a small company if:
(a) it is a private company in the financial year in question; and
(b) it meets at least 2 of 3 of the following criteria for immediate past two financial years:
- total annual revenue ≤ $10m;
- total assets ≤ $10m;
- no. of employees ≤ 50.
For a company which is part of a group:
- the company must qualify as a small company; and
- entire group must be a “small group” to qualify for the audit exemption.
For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:
- it ceases to be a private company at any time during a financial year; or
- it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
