Which companies are exempted from auditing their accounts?

Is Audit Compulsory for every Singapore Company? If not for which Companies is it Compulsory?

As per the Singapore Companies Act, certain companies are exempted from audit requirements.

In 2014, the Companies Act was amended to introduce a new concept called “small companies”. These companies are exempted from auditing their accounts. There are specific criteria to meet for a company to fall in the category of small companies.

A company will be considered a small company if it meets any two of the three conditions mentioned below:

• The total annual revenue of the company must not exceed $10 million.
• The total asset value of the company must not exceed $10 million.
• The total number of employees must not exceed 50.

Even a company that is a part of a group can be exempted from auditing its accounts under certain circumstances. The conditions for it are:

• A company must fulfill the criteria of a small company i.e. meet any two of the three conditions mentioned above
• The group must also be a “small group”.

A group can be considered as a small group if it meets any two of the three conditions:

• Group’s total annual revenue is less than or equal to $10 million
• Group’s total asset value is less than or equal to $10 million
• Group’s total number of employees are less than or equal to 50