Since 1 July 2015, there has been a change in the landscape of audit of Companies in Singapore. The previous ruling of requiring either having a Corporate Shareholder or an Annual Turnover of > S$5m to be mandatory to be audited has been removed and has been replaced by a new ruling.
The new ruling now specifies that audit exemptions would be given to Companies that meets the definition of a “Small Company”. The criteria are as follows :-
(A) It is a private company; and
(B) It meets at least 2 of 3 following criteria for the immediate past 2 financial periods:
– Total Revenue for the financial period to be or less than S$10m
– Total Assets at the end of the financial period to be or less than S$10m
– No of employees at the end of the financial period to be or less than 50 staffs; and
(C) If the Company is part of a Group, the above test must be met on a Group (consolidated) basis as well.