Compilation of unaudited financial statement
A Singapore private limited company enjoys audit exemption if they meet the following requirements:
- the shareholders of the private limited company do not comprise of any corporate shareholder and it only comprise of individuals only; and
- the annual turnover of the private limited company is less than S$5million
However, every Singapore private limited company is still required to prepare unaudited financial reports in a format as required by the Companies Act and the Singapore Financial Reporting Standards (FRSs). This is for submission to the relevant authorities such as Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS). Therefore, it is important that the financial report be prepared by a Certified Public Accountant (C.P.A.) registered with the Institute of Certified Accountants of Singapore to ensure compliance with the requirements of the Singapore Companies Act and the Singapore Financial Reporting Standards to minimise any unnecessary queries and subsequent costly amendments.