Singapore Audit Requirements: running a company in most countries require auditing as a process to prove that everything is operating legitimately. Listed companies have a legal responsibility to go through audit in Singapore similarly.
The audit exemption is applicable if it is a private company with an annual revenue of SGD $5 million or less. This approach is being replaced by a new small company concept which will also determine exemption from statutory audit. Particularly, a company no longer needs to be an exempt private company to be exempted from audit.
It is a private company meeting at least 2 out of 3 of the following criteria for the two previous consecutive years:
For a company which is part of a group or conglomerate:
(a) The company must qualify as a small company; and
(b) The entire group must satisfy the small group requirements for 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 two previous consecutive years.
Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is excluded if:
(a) It ceases to be a private company at any time during the fiscal year; or
(b) It does not meet at least 2 of the 3 the quantitative criteria for the immediate previous two consecutive fiscal years.
Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
An existing company can qualify as a “small company” if it is a private company and meets the quantitative criteria in the first or second FY commencing on or after the date of commencement of the “small company” criteria.