10 Trusted Audit Firms in Singapore for Various Types of Audit

While a lot of companies may be wary of being audited, using audit services actually brings in a lot of value to businesses. An audit has three primary benefits: it ensures the accuracy and reliability of a company’s financial reports and information, finds points for improvement in the processes and controls of the company, and assures the company’s shareholders (and other interested parties) that the company is properly governed and managed. 

If you are thinking about getting auditing services to check the validity of your company’s financial information and improve your financial reports, check out our list of top auditing companies in the country.

Verified Company
Respond in
Most Important Factor
1.
2.
3.

Audit

Industry Sub-Categories

Types of Products & Services

How to Select Audit Services That Assures Accurate Examination of a Company’s Financial Information

If your business is growing or you're thinking about taking on investors, you could secure your business going forward by having your company audited. An audit is a type of assurance services proving to your potential investors that your financial reports are accurate and free from incorrect information. Hiring an audit firm can help you improve your internal controls, detect fraud, and improve the efficiency and effectiveness of your business processes.

Having your company audited is also required by law. In Singapore, all the companies that register in the Accounting and Corporate Regulatory Authority (ACRA) must select an audit firm within three months of its incorporation (unless they are under the small company category). Make sure that your chosen audit firm is registered and accredited by the ACRA. 

To help you find a trusted partner for your auditing needs, read the following guide which details the importance of auditing, different types of auditing services, and how to find an auditing services company that suits your business.

Types of Audit Services

Different Types of Audit Services

An audit can first be classified as either an internal audit or an external audit. Internal audits are done by auditors who are affiliated with or employed by the company being audited; it serves more as a management tool to check the company’s internal structure. Meanwhile, external audits are conducted by accredited Singapore audit firms that are independent of the company being audited; companies incorporated in Singapore are required to perform a type of external audit called statutory audit. 

Audit services can be further classified based on the focus of the audit. These auditing types are the following: 

Tax Audit 

A tax audit is an examination of financial records by the Inland Revenue Authority of Singapore (IRAS) or other state tax authorities to determine whether an individual or company has reported their income and taxes accurately. 

Tax audits can be conducted for both individuals and businesses. They can be triggered by a number of factors, including discrepancies on your tax return, math errors, claims of excessive deductions, or a history of filing inaccurate returns. 

Corporate Tax Audit 

The purpose of a corporate tax audit is to determine whether a company has accurately reported its income and paid the correct amount of taxes. The audit may also identify areas where the company can improve its tax compliance in the future. During a corporate tax audit, the auditors will review the company's financial records, particularly its tax returns, and attempt to detect any form of non-compliance of IRAS regulations. 

Personal Tax Audit 

A personal tax audit is a special form of tax audit conducted by the IRAS for persons or business entities identified as high-risk. This type of audit is designed to help the IRAS collect appropriate taxes from non-compliant taxpayers. The auditing process is generally much more intrusive than a regular tax audit and can be quite disruptive to the individual being audited. 

IRAS Tax Audit 

IRAS tax audit is an examination of a person's or organisation's tax records to ensure accuracy and compliance with tax laws. It can be conducted by IRAS officials or by independent auditors. A tax audit aims to determine whether a taxpayer has complied with tax laws and regulations and to identify areas where the taxpayer may be liable for additional taxes. 

ISO Audit 

The ISO audit is a comprehensive assessment of an organisation's compliance with the requirements and regulations imposed by the International Organization for Standardization. The audit process involves a review of the organisation's policies, procedures, and documentation with the aim to meet the requirements of relevant ISO standards. Additionally, the auditor will interview employees and observe operations to verify that the organisation is following ISO-prescribed procedures. 

MCST Audit 

In Singapore, Management Corporation Strata Title refers to the governing group of strata-titled properties, such as a condominium. MCST audit is the annual auditing of the books and accounts of a management corporation by a public accountant, as stipulated by the Building Maintenance and Strata Management Act of Singapore. 

Compliance Audit 

A compliance audit is an evaluation of an organisation's compliance with regulatory requirements. It is a type of financial audit that assesses whether an organisation is following rules and regulations set forth by an external body, such as a government agency or industry association. The purpose of a compliance audit is to ensure that an organisation is adhering to the standards that have been established for it. 

KYC/AML Audit 

A KYC/AML audit is an evaluation by an independent audit firm of an institution's compliance with KYC (know your customer) and AML (anti-money laundering) regulations. The purpose of the audit is to assess the adequacy of the financial institution's policies and procedures for identifying and verifying its customers, as well as its procedures for detecting and reporting suspicious activity. 

System Audit 

System Audit is an important component of organisational security that involves scanning and testing networks, systems and applications to identify vulnerabilities that attackers could exploit. By conducting a VAPT assessment, organisations can determine if their systems are vulnerable to attack and take steps to mitigate the risks. 

Vulnerability Testing 

Vulnerability testing or vulnerability assessment (VA) is a type of security test conducted to identify, assess and mitigate vulnerabilities in an application or system. Vulnerabilities can be present in both the code and the architecture of an application and can be exploited by attackers to gain access to, tamper with, or corrupt sensitive data. VA helps organisations to protect their applications and systems from these attacks. 

Penetration Testing (VAPT) 

Penetration testing, also known as "pen testing" or "security testing", is the process of assessing the security of a computer system or network by simulating an attack from a malicious source. The goal of penetration testing is to identify vulnerabilities that could be exploited by an attacker and to assess the impact of such an exploit. 

Security Audit 

A security audit is an independent assessment of a company’s overall security posture, particularly regarding its I.T. structure. It’s used to verify that the organisation has an adequate security strategy, lower company expenditure by looking for and eliminating redundancies, and demonstrate that the company complies with appropriate regulations. Security audits can be conducted on both physical systems and facilities and computer networks and applications. 

Financial Audit 

A financial or statutory audit is a process of examining an organisation's financial statements to determine whether they are accurate and in compliance with applicable laws and regulations. Statutory audits assure that an organisation's financial reports are free from material misstatements and errors and have authentic assessments of their cases. Financial or statutory audits are conducted by independent Singapore audit firms who are required to issue the audited financial statements to the ACRA. 

While technically not a type of audit, tax advisory is a service that is typically provided by auditing firms. Tax advisory serves to provide advice to businesses and individuals on tax-related matters. In an audit company, tax advisors assist clients with various issues, including tax planning, tax compliance, and tax litigation. They can also provide advice on financial planning and investment strategies. Tax advisors can be Singapore chartered accountants, attorneys, or enrolled agents (EAs). 

Benefits of Audit Services

Benefits of Using Audit Services 

Auditing services provide many benefits to businesses, including assurance services, improved financial reporting, and enhanced risk management. Here are the key ways using reliable auditing services helps businesses: 

Improved financial reporting 

Good auditing services helps improve the accuracy and completeness of an organisation's reports. This, in turn, can help to provide stakeholders with a better understanding of the organisation's financial position and performance. An organisation can even hire a forensic auditor to examine past financial transactions that are necessary to resolve an issue in a financial report. 

Greater transparency and accountability 

An auditing service helps to ensure that an organisation's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). This can help provide greater transparency and accountability, as well as ensure that the organisation's financial reports are reliable. 

Enhanced risk management 

Outsourced auditing services help organisations identify and manage potential risks, as well as help the company improve its internal audits, which often lacks action monitoring processes and support from the management. This reduced the likelihood of errors, fraud and material misstatement, while also improving operational efficiency. 

Insights into an organisation's performance 

Audit services provide valuable insights into an organisation's financial performance, which helps to improve decision-making and overall management. An audit from an independent or outsourced auditor is more likely to find errors in misreporting that an internal audit may have overlooked. 

Improved efficiency and effectiveness 

Auditing services in Singapore can find redundant practices that may have financial or manpower cost to the company. The audit can provide recommendations on how business operations can be performed with fewer resources while maintaining effectiveness in meeting the objectives of the business. 

Risks of Not Using Audit Services

Risks of Not Auditing

If your business is not using audit services in Singapore, you could be putting yourself at risk in a number of ways. Here are just a few of the potential risks you face: 

  1. You could miss important deadlines 
    • If you're not working with an auditor, you may not be aware of all the deadlines you need to meet. This could lead to costly penalties or even legal problems. 
  2. You could make errors in your financial reporting 
    • An auditor can save company resources and help it avoid legal complications by spotting errors in its financial reporting and recommending appropriate actions. 
  3. You could miss important tax deductions 
    • An auditor can help you identify potential tax deductions that you may not be aware of. This could save you a significant amount of money. 
  4. You could be the victim of fraud 
    • If you're not using audit services, you may not have the level of protection you need against fraud. Investigative audits can help you prevent fraud or detect it before it does considerable damage to the company. 
  5. You could make poor business decisions 
    • If you do not receive objective feedback from an auditor, you may be more prone to make poor business decisions. An auditor provide valuable insights that can help you make better decisions. 

Make The Most of Audit Services

How to Outsource Audit Services 

Audit services can help businesses improve their operations, identify risks and opportunities for cost savings, and ensure compliance with regulations. When selecting a professional audit firm in Singapore, it is important to consider the following factors: 

  • Find an auditor at the right price and value 

Get quotes from several auditing firms to compare costs and range of service. Make sure that you get not just an audit report, but something that gives value to your company. 

  • Prepare your records and accounts 

Review your financial statements and records in advance. Have your bookkeeper and accountant review your records and make sure that they observe proper accounting standards. 

  • Identify major changes in your company 

Significant changes in your company structure will have great effect on your fiscal findings, and are best presented right from the start. Such changes could include new processes, investments, grants and subsidies. 

  • Be honest and cooperative 

The audit process can be disruptive, but if you work with the auditors and provide them with the information they need, it will go more quickly and smoothly. 

  • Follow up 

After the audit is complete, review the findings and recommendations with your dedicated team. Implement any changes that are needed to improve your operations.

The External Audit Process

The External Audit Process 

Independent auditors conduct audits examining an organisation's financial reports and assessing its compliance with laws and regulations.  Their purpose is to assure that an organisation is operating effectively and efficiently and that its financial reports are accurate and free from material misstatement. The process typically entails four steps: 

  1. Planning the audit 
    • The auditor develops an audit plan that outlines the scope and objectives of the audit. The plan is based on understanding the organisation's business, internal controls, and the risks associated with its operations. 
  2. Performing audit procedures 
    • The external auditor performs tests and procedures to assess the adequacy of the organisation's internal controls and to gather evidence to support the internal auditor's declaration on the financial reports. 
  3. Formulating an opinion 
    • Based on the evidence gathered during the audit, the external auditor expresses an opinion on the fairness of the financial reports and whether they are free from material misstatement. 
  4. Reporting results 
    • The auditor issues a report that summarises the results of the audit and provides recommendations for improvement. The report is typically shared with senior management and the board of directors. 

Businesses are advised to conduct external audits on a yearly basis, although the frequency may be increased or decreased depending on the organisation's risk profile. For example, public companies are subject to more frequent audits than private companies.

An external audit process is an important tool for checking the adequacy of a company’s internal controls. It helps organisations to identify areas of improvement and make the necessary changes to improve their operations. 

Choosing an Audit Service

How to Choose an Audit Service Company

When choosing an audit service, there are a few things you need to take into account. Here are some tips on how to choose an auditing service that will be right for you: 

  • Determine the scope of the audit 

The first thing you need to do is determine the scope of the audit. What do you want the audit to cover? Do you need a financial audit or a compliance audit? What specific areas do you want the audit to focus on? 

  • Choose an experienced service 

It is best to choose an experienced audit firm with veteran auditors as they are more likely to have broader knowledge and better understanding of the intricacies of the whole auditing process. They are also more likely to conduct their auditing using industry best practices. 

  • Consider the cost 

Cost is always a factor when choosing any type of service. Make sure you get quotes from several different quality Singapore auditing services offered before making a decision. 

  • Get references 

When considering an audit service, get references from businesses that have used the service in the past. Ask them about their experience and whether they would recommend the service to others. 

  • Make sure the service is accredited 

When choosing an audit service, ensure they are accredited by a reputable organisation to ensure that they have a deep understanding of financial reporting. This will ensure that the service is held to high Singapore auditing standards and statutory requirements. 

When selecting an audit company, you should also consider the size of the firm (smaller firms tend to specialize while larger firms typically has a broader range of service) and check that they have passed the Auditing Organisation Scheme by the Singapore Accreditation Council. By considering these factors, you can be sure to select a Singapore audit firm that will meet your auditing needs and improve your financial reporting.

 

To help you choose the best audit firm for your company, check out our list of the most outstanding audit service companies in Singapore.

Latest Becozon Offer

Boost your business with these exclusive deals by our esteemed Becozon partners

Looking for a CRM software?

Get customisable, cloud-based sales and operations CRM software suitable for any industry. Contact us for a demo today!

Contact Us