Audit Exemptions for Small Companies in Singapore
In Singapore, certain small companies are exempt from statutory audit firm singapore, making compliance more manageable for smaller businesses. This exemption is provided under the Companies Act and is beneficial for startups and SMEs.
Criteria for Audit Exemption
A company qualifies for audit exemption if it meets at least two of the following three criteria:
- Total revenue does not exceed SGD 10 million.
- Total assets do not exceed SGD 10 million.
- The company has no more than 50 employees.
Benefits of Audit Exemption
- Cost Savings: Reduces expenses associated with hiring external auditors.
- Less Administrative Burden: Eases compliance requirements for small businesses.
- More Focus on Business Growth: Allows companies to allocate resources more efficiently.
When an Audit is Still Required
Even if a company qualifies for audit exemption, certain situations may still require an audit, such as:
- When requested by shareholders owning at least 5% of the company’s shares.
- When required by financial institutions or investors.
- If the company is involved in specific regulated industries.
Audit exemptions in Singapore provide much-needed relief to small businesses, allowing them to focus on growth while maintaining financial responsibility. However, companies should still ensure their financial statements remain accurate and transparent to attract investors and maintain compliance.
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