Audit & Compilation Report Services

Financial Reporting Services

The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization. This information is used by the readers of financial statements to make decisions regarding the allocation of resources. At a more refined level, there is a different purpose associated with each of the financial statements. The income statement informs the reader about the ability of a business to generate a profit. In addition, it reveals the volume of sales, and the nature of the various types of expenses, depending upon how expense information is aggregated. When reviewed over multiple time periods, the income statement can also be used to analyse trends in the results of company operations.

The purpose of the balance sheet is to inform the reader about the current status of the business as of the date listed on the balance sheet. This information is used to estimate the liquidity, funding, and debt position of an entity, and is the basis for a number of liquidity ratios.

Finally, the purpose of the statement of cash flows is to show the nature of cash receipts and disbursements, by a variety of categories. This information is of considerable use, since cash flows do not always match the revenues and expenses shown in the income statement.

There are two types’ financial report used for statutory purpose, i.e., audited report and unaudited report.

New update for statutory regulation for private company audit exemption

Effective date

The audit exemption is applicable for financial years beginning on or after the change in the law (1 Jul 2015).

Qualification Criteria

A company qualifies as a small company if:

  • it is a private company in the financial year in question; and
  • it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
    • total annual revenue ≤ $10m;
    • total assets ≤ $10m;
    • of employees ≤ 50.

For a company which is part of a group:

  • The company must qualify as a small company; and
  • Entire group must be a “small group”

to qualify to the audit exemption.

 

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the

immediate past two consecutive financial years.

Audited financialreport services

 Types of companies exempted from audit

  • Private Companies that did not meet the “small company” criteria for a financial year starting on or after 1 Jul 2015;
  • Public company

 

Our affiliated CPA firm can perform the following auditing works:-

  • Singapore statutory audit
  • Internal audit, internal control review
  • Special audit review
  • Due diligence audit

Unaudited financial report services (Compilation report)

Types of companies exempted from audit

  • EPC with revenue not more than S$5 million for a financial year starting before 1 Jul 2015; or
  • EPC with revenue not more than S$2.5 million for a financial year starting on or after 15 May 2003 but before 1 Jul 2015; or
  • Companies that meet the “small company” criteria for a financial year starting on or after 1 Jul 2015;
  • For a company which is part of a group:
  • company must qualify as a small company; and
  • entire group must be a “small group”.
  • Any company, including an EPC, that is dormant for the financial year starting on or after 15 May 2003

Our firm performsunaudited financial (compilation) report that base on Companies Act and Singapore Financial Report Standard (SFRS), the detail formal structure as below:

  • Directors’ report
  • Statement by directors
  • Unaudited statements of comprehensive income and changes in equity
  • Unaudited statement of financial position
  • Unaudited statement of cash flows
  • Notes to unaudited financial statements