In Singapore, the Companies Act requires all businesses to appoint an external auditor within 3 months of their incorporation unless exempted from an audit. The audit exemptions apply to companies that fall under the “Small Company” or “Small Group” category. Audits are carried out on an annual basis.
A company is considered to be a small company if it meets at least two out of the following three conditions:
The total annual revenue of the company does not exceed S$10 million;
The total assets of the company for the financial year end do not exceed S$10 million;
The number of full-time employees at the end of the financial does not exceed 50.
A qualified auditor must meet the following requirements:
Have a recognised qualification;
Have the appropriate audit experience;
Have the proper ongoing professional education;
Be a member of the Institute of Singapore Chartered Accountants (ISCA).