{"id":3103,"date":"2020-12-28T06:58:42","date_gmt":"2020-12-28T06:58:42","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/scmohan.com.sg\/?p=3103"},"modified":"2022-08-25T08:43:18","modified_gmt":"2022-08-25T08:43:18","slug":"audit-exemptions-for-small-companies-in-singapore","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/scmohan.com.sg\/audit-exemptions-for-small-companies-in-singapore\/","title":{"rendered":"Audit Exemptions for Small Companies in Singapore"},"content":{"rendered":"\n

ACRA has implemented many key changes in the Companies (Amendment) Act 2014, one of which is audit exemptions for small companies. The new rule is meant to offer flexibility to small\/single companies to have or not to have audit assurance.<\/span><\/p>\n

The new audit exemption has been effective from the financial year beginning on or after the change in the law (1st July, 2015).\u00a0<\/span><\/p>\n

The Accounting and Corporate Regulatory Authority (ACRA) ACRA is the national regulator of business entities, public accountants and corporate service providers in Singapore. ACRA also plays the role of a facilitator for the development of business entities and the public accountancy profession.<\/span><\/p>\n

Audit Exemptions for Small Companies\u00a0<\/b><\/p>\n

The New Audit Exemption regulation introduced on 1 July 2015 allows more categories of companies to qualify for exemptions from conducting statutory audits of their financial statements. This implies that a larger number of small to medium companies can exempt themselves from conducting audit assurance.<\/span><\/p>\n

Highlights<\/b><\/p>\n

    \n
  1. The concept of Private Exempt Company was removed; and<\/span><\/li>\n
  2. Revenue threshold (for Statutory Audits) was increased from SGD 5 million to SGD 10 million.<\/span><\/li>\n<\/ol>\n

    Reason for Introducing New Audit Exemptions<\/b><\/p>\n

    Similar exemptions were made in the year 2003 and 2005. The purpose of introducing such exemptions is to reduce the regulatory burden and compliance cost (audit fees) for smaller companies that have a small market and limited budget.<\/span><\/p>\n

    What is Meant by the \u201cPrivate Exempt Company Concept\u201d?<\/b><\/p>\n

    As a background to the New Audit Exemption, it\u2019s important to know which companies qualified as Private Exempt Companies prior to the New Audit Exemption being introduced.<\/span><\/p>\n

    Criteria for Exempt Private Company<\/b><\/p>\n