Even if a parent company is exempt, a subsidiary incorporated in Singapore is treated as a separate legal entity. It may still need to prepare local financial statements in compliance with ACRA filing obligations is mandatory, and directors must ensure timely preparation and submission of financial statements in accordance with the Companies Act and SFRS. Directors are responsible for ensuring that these statements are prepared and submitted on time.

Finally, even where consolidated financial statements are required, the audit requirement depends on whether the company or group qualifies as a small entity or small group. If it does not qualify, the consolidated financial statements must be audited, ensuring accountability and transparency for stakeholders.