Exempt of statutory audit
A company may be exempted from statutory audit if :
- It is an Exempt Private Company (“EPC”). EPC is a private company which has no corporate shareholder (direct or indirect) and the number of shareholders in the company is not more than 20.
- Annual revenue of EPC does not exceed S$5mil for financial year starting on and after 1 June 2004
- Shareholders who represent 5% or more of a company ordinary shares do not request for audit
- Banks or other creditors/financial companies do not request for audit
However, EPCs are still required to prepare financial reports in a format defined by the Companies Act and the Singapore Financial Reporting Standards before holding Annual General Meeting and submit the financial reports together with form C when filing income tax return. It is important that the financial reports be prepared by a Chartered Accountant to ensure compliance with the statutory requirements. The fee for a compilation engagement is lower than the audit fee.
Please Contact Us to check if your company is qualified for audit exemption.
Aglow Corporate Services Pte Ltd provides accounting services which include compilation of unaudited financial reports. Our Chartered Accountant who has years of experience providing accounting services ensures the unaudited financial reports prepared comply with the statutory requirements.