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Q：
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What types of companies qualify for audit exemption in Singapore?
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A：
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Companies may qualify as “small companies” and be exempt from statutory audit if they meet at least two of the following criteria for the immediate past two consecutive financial years:
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Total annual revenue not exceeding S$10 million
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Total assets not exceeding S$10 million
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Number of employees not exceeding 50
For companies that are part of a group, the company must also qualify as part of a “small group”.
A group is considered a “small group” if it meets at least two of the following criteria on a consolidated basis for the immediate past two consecutive financial years:
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Total consolidated revenue not exceeding S$10 million
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Total consolidated assets not exceeding S$10 million
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Total number of employees not exceeding 50
These thresholds are assessed at the group level, based on consolidated financial statements, including all subsidiaries.
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Q：
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Can a company voluntarily choose to be audited even if it is exempt?
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A：
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A company may opt for a voluntary audit even if it qualifies for exemption.
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Q：
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If a company is exempt from audit requirements, is it still required to appoint an auditor?
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A：
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A company that qualifies for audit exemption under the “small company” (and, where applicable, “small group”) criteria is not required to appoint an auditor.
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Q：
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Are there situations where an audit may still be required even if a company is exempt?
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A：
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Even if a company qualifies for audit exemption, audited financial statements may still be required in certain circumstances. This may arise where:
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Requested by regulators such as Accounting and Corporate Regulatory Authority (ACRA) or other authorities during reviews or investigations.
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Required by banks or financial institutions as part of financing or credit facilities.
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Requested by shareholders for governance, dispute resolution, or transparency purposes.
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Needed in connection with transactions such as fundraising, mergers, or due diligence exercises.
In such cases, an audit may be required on a voluntary or contractual basis, even though it is not statutorily mandatory.
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Q：
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What is the deadline for completing a statutory audit?
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A：
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Audits should be completed in time for the company to meet AGM and annual filing deadlines, typically within 6 months after financial year end.
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FAQ
