Opting for Non-Audit Services
Compilation reports are unaudited financial statements. Today, many companies opt for non-audit services. Compilation reports are inexpensive and they serve as a better option for companies to meet the same compliance requirement.
AUDIT EXEMPTION CRITERIA
Companies with financial years beginning on or after 1 July 2015, may be exempted for audit if it meets at least 2 of the 3 following criteria for the immediate past two consecutive financial years:
- Total annual revenue ≤ $10m;
- Total assets ≤ $10m;
- No. of employees ≤ 50
For a company which is part of a group:
- The company must be qualified as a small company; and
- Entire group must be a “small” group”
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.
MEETS FILING REQUIREMENT
A compilation report will give you the level of comfort that the information is compiled with professional competence and due care. It is sufficient for income tax filing to the Inland Revenue Authority of Singapore (IRAS) and annual return filing to the Accounting and Corporate Regulatory Authority (ACRA).
WHAT A COMPILATION REPORT INCLUDES
A full set of compilation reports should include explanatory notes and accompanied by the Directors’ Report and the Statement by Directors. The reports are prepared in compliance with the Singapore Financial Reporting Standards (“SFRS”).